COVID19

Criteria

The eligibility criteria are as follows, per the Government of Canada’s requirements:

• You have an existing business deposit account, which is your primary financial institution, and your account was opened prior to March 1, 2020.
• Your business has been a registered and operational business on or before March 1, 2020.
• The person enrolling for the Canada Emergency Business Account must have the ability and authority to bind the organization.
• Your payroll expense is between $50,000 and $1 million. To confirm this, you will be required to provide the following information:
  • Your employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid
  • Your employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid.
  • A copy of your 2019 T4 Summary of Remuneration Paid, if requested.
• As per the requirements set out by the Government of Canada, you will agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax.

What is it?

COVID-19 Economic Response Plan, which already commits $107 billion in support to Canadians so they can buy groceries, pay rent, and care for their loved ones, and also supports businesses through this difficult time.

To further support small businesses, the Government of Canada will:

• Announce a 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll. More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the month.
• Allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until June, as well as customs duties owed for imports. This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses. It will help businesses so they can continue to pay their employees and their bills, and help ease cash-flow challenges across the country.
• Launch the new Canada Emergency Business Account. This program will provide up to $25 billion to eligible financial institutions so they can provide interest-free loans to small businesses. These loans – guaranteed and funded by the Government of Canada – will ensure that small businesses have access to the capital they need, at a zero per cent interest rate, so they can pay for rent and other important costs over the next number of months.
• Launch the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending, supported through Export Development Canada and Business Development Bank, for guaranteed loans when small businesses go to their financial institutions to help weather the impacts of COVID-19. This is intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements.