COVID-19 Financial Programs Resources

Updated April 24, 2020 10:33 AM

Beacon continues to closely monitor the COVID-19 situation to assess its impact on businesses and to find solutions aimed at providing financial relief. These are challenging times for many of us and therefore, Beacon is fully committed to supporting business owners and entrepreneurs. 

Below we have provided a summary and useful links to some of the most meaningful small business assistance programs available at the moment:

  1. Canada Emergency Business Account (CEBA) loan
  2. Canada Emergency Wage Subsidy (CEWS)
  3. BDC/EDC COVID-19 Loan Programs

Canada Emergency Business Account (CEBA)

The good news from the last week is that the eligibility requirements for the Canada Emergency Business Account (CEBA) loan have recently changed to allow more small businesses to seek financial relief under the program. Under the new guidelines, all small businesses with a minimum payroll expense per annum of $20,000 are eligible to apply immediately through its primary business financial institution. For more details regarding eligibility please visit the Government of Canada website here.

To apply for the CEBA loan, you may use the links below to visit the COVID-19 relief website of your financial institution.

Canada Emergency Wage Subsidy (CEWS)

After having announced the CEWS Program (subsidy of 75% of employee wages for up to 12 weeks) almost a month ago, the wage subsidy form will finally become available on Monday, April 27th through the Business CRA Account. There will be no limit on the total subsidy amount that an eligible employer may claim. The CEWS wage subsidy is calculated based on

  • The number and type of eligible employees
  • The amount and type of pay they received

The total wage subsidy for the qualifying period can be calculated using the formula

Total Wage Subsidy = A-B-C+D, where

A = Total amount for all eligible employees for each week in qualifying period, the greater of X or Y, where

  1. X is the least of
    1. 75% of actual pay
    2. $847
    3. $0 for non-arm’s length employees
  2.  Y is the least of
    1. Actual pay
    2. 75% of baseline remuneration for that week
    3. $847

B = 10% Temporary Wage Subsidy for Employers amount

C = Total of amounts received by employees through ESDC’s Work-Sharing program for any weeks in the qualifying period

D = Total EI and CPP contributions for eligible employees that are on leave with pay in the qualifying period

Note:  Businesses must do a separate calculation and application for each payroll program (RP) account and will be required to provide a full list of employees and their Social Insurance Numbers (SIN) for verification after applying.

For a detailed step-by-step guide to the online calculator and the CEWS calculation, spreadsheet click here.

BDC/EDC COVID-19 Loan Programs

In addition, BDC and EDC have the following COVID-19 loan programs available:

    • BDC
      • Co-lending Program for SMEs – Up to $6.25M in new operating credit and cash-flow term loans available depending on business revenue. Loans are available through primary lending institutions, 80% of which is financed through BDC and 20% through financial institutions.
      • Oil & Gas Sector Financing – For Canada-based producers, service providers and midstream companies which were financially viable prior to COVID-19. Loans between $15 – $60 million available, offered at commercial rates, repayable within 4 years.
      • COVID-19 Working Capital Loan – The BDC COVID-19 Working Capital loan provides loans between $100,000 and $2 million with a 24-month term and 12-month principal postponement, available at reduced rates.
  • BDC Small Business Loan – Through this loan businesses can access up to $100,000 and have the ability to postpone capital payments for the first six months and repay the loan at their own pace over five years. Reduced rates on new eligible loans are available during this difficult time.
    • EDC
      • Business Credit Availability Program (BCAP) Guarantee – EDC will work with financial institutions and guarantee a new loan or operating line of credit for 80% of its value, up to $6.25 million. This is available to both exporting and non-exporting companies.
  • Export Guarantee Program – Under this program financial institutions will provide businesses with additional access to financing. EDC shares the risk with financial institutions by providing a guarantee on the money borrowed. EDC’s total exposure cannot exceed US$10 million.
  • EDC Credit Insurance – Protects Canadian companies against the risk of non-payment caused by an array of events including customer bankruptcy, contract cancellation, issues with currency conversion or transfer, and more.

Deferred Tax Payments

In addition to the above measures and programs, businesses can defer to September 1, 2020 taxes that become owing on or after March 18, 2020. GST payment and customs duties are extended to June 30, 2020. The Canada Revenue Agency says it won’t contact small or medium businesses regarding post-assessment income tax and GST/HST audits for the next month.

Farm Credit Canada

Farmers can receive credit through Farm Credit Canada, and those with loans due from the Advance Payment Program on or before April 30 have an additional six months to pay.