COVID-19 Support Programs for Employers in Canada, Part 1
Since the pandemic reached Canada in early 2020, the federal and provincial governments have implemented a number of support programs to assist businesses with the effects of the pandemic. The list of programs is lengthy and can be found in full on the Miller Thomson LLP COVID-19 page.
We spoke to Inna Koldorf, Partner at Canadian national law firm Miller Thomson and leading employment lawyer, to find out some of the employment-related support programs currently offered to businesses by the federal government. Programs offered by provincial governments across the country will be discussed in the second part of this two-part blog.
Federal Support Programs Offered by the Government of Canada
Canada Emergency Wage Subsidy (CEWS)
Likely the most widely used support program, the CEWS provides eligible employers who experience a drop in revenue with a wage subsidy. The amount of subsidy varies based on the extent to which the revenue of the business dropped, and is capped at 75% of an employee’s wages. The federal government maintains a comprehensive guide to eligibility criteria here.
The CEWS calculator can be found on the Canada Revenue Agency’s (CRA) CEWS Page, which includes detailed information to help employers understand how the CEWS can support their employees and operations, who is eligible to apply, and how claim periods are structured. The calculator allows employers to enter their information to get an estimate of the subsidy they can expect to receive. Currently, the CEWS is scheduled to operate until June 2021.
Support for the Live Event and Arts Sectors
The federal government allocated $181.5 million in 2021-22 to the Department of Canadian Heritage and the Canada Council for the Arts to support the planning and presentation of COVID-19-safe events and the arts (both live and digital) and to provide work opportunities in these sectors. More information can be found here.
Can Export SMEs Program
This program provides assistance for Canadian small businesses to access global markets through changes to the CanExport SMEs program. The changes are designed to help small businesses:
Develop and expand their e-commerce presence by covering partial costs associated with online sales platforms, digital strategy consulting, advertising and search engine optimization.
Attend virtual trade shows and other business-to-business events.
Navigate new COVID-19-related trade barriers by helping pay for new international market certifications and requirements.
Applications are now open and can be found here.
Canada United Small Business Relief Fund
The federal government has invested $12 million in the Canada United Small Business Relief Fund, to support Canadian businesses across different sectors and industries with grants of up to $5,000. The grants are designed to cover the costs of personal protective equipment, make physical modifications to businesses to meet local health and safety requirements, and enhance digital or e-commerce capabilities. To qualify, a business must have between $150,000 and $3 million in annual sales, have up to 75 employees, and be registered in Canada,
Applications for the grant can be found here.
Canada Emergency Rent Subsidy (CERS)
The CERS provides direct rent and mortgage interest payment support to businesses that have experienced a revenue drop. The CERS can support up to 65% of eligible expenses for businesses that are still operating, and up to 90% of eligible expenses for businesses that have been temporarily shut down due to a mandatory second wave public health order. Support will be accessible until June 2021. Eligible expenses include commercial rent, property taxes (including school taxes and municipal taxes), property insurance, and interest on commercial mortgages for qualifying property, less any subleasing revenues. Sales taxes are not eligible for the subsidy.
More information on the program can be found here.
Women Entrepreneurship Strategy (WES)
The federal government invested $15 million to support women entrepreneurs through organizations that are currently WES Ecosystem Fund recipients and will help women entrepreneurs through the COVID-19 pandemic.
More information on the WES can be found here.
Support for Black Entrepreneurs and Business Owners
The federal government will invest nearly $221 million over the next four years (in partnership with Canadian financial institutions) to launch the Black Entrepreneurship Program. This program will help black business owners and entrepreneurs across the country recover from the COVID-19 crisis and grow their businesses. More details can be found here.
Determine Whether You Are Eligible For Business Assistance
Since each program has its own eligibility criteria and application process, we encourage businesses to visit the webpages linked to each program to determine whether they may be eligible for assistance. It is important to keep in mind that as the pandemic evolves, some programs are terminated, expanded, or changed, and new programs are implemented. We encourage you to check the list of active programs on a weekly basis to determine whether your business may have access to further support as changes are made. If you would like more information, reach out to Inna here.
Disclaimer: PGC does not endorse any personal views or opinions of the author. All information here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.