Businesses across the world are experiencing unprecedented hardships due to the recent COVID-19 pandemic. The current situation is putting pressure on their supply chains, their cashflow and their people. We thought it would be best to share some useful resources available to our fellow businesses during these uncertain times.
BDC (Business Development Bank of Canada) in cooperation with the federal government has implemented a number of changes to its existing programs in order to better suit businesses in need. Some of the recent changes include the introduction of:
- Working capital loans of up to $2 million with flexible repayment terms such as principal postponements for qualifying businesses
- Postponement of payments for up to 6 months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less
- Reduced rates on new eligible loans
To learn more about how BDC can assist your business, click here.
Government of Canada
Additionally, The Government of Canada has announced a number of measures aimed at reducing the impact of the COVID-19 crisis on the Canadian Economy. It is taking immediate, significant and decisive action to support Canadian businesses facing financial hardship as a result of the COVID-19 pandemic.
Tax Deferral: The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
Wage Subsidies: To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
Business Credit Availability Program (BCAP): The BCAP will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses. This will be an effective tool for helping viable Canadian businesses remain resilient during these very uncertain times. BDC and EDC are cooperating with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation and tourism. The near term credit available to farmers and the agri-food sector will also be increased through Farm Credit Canada.
To learn more about what The Government of Canada is doing to help businesses and individuals, click here.
Canadian Federation of Independent Business
The Canadian Federation of Independent Business has published a number of resources for small business owners dealing with the COVID-19 crisis. You can find free templates here for a notice to visitors, emergency preparedness checklist, and sick policy that you can implement in your business immediately. Additionally, they have compiled a number of frequently asked questions and answers to help guide business owners through the ongoing crisis.