Business Resources and Funding Information - COVID-19

Posted On Thursday March 19, 2020

 

 

 

The Municipality of Kincardine is here to support local businesses. Below are the resources and funding opportunities that we have gathered in the past few days. You can also download a .pdf of this information at the botton of this listing.

INFORMATION FOR LOCAL BUSINESS

CANADA’S ECONOMIC RESPONSE PLAN: FEDERAL SUPPORT FOR BUSINESSES

On March 18, 2020, the Prime Minister announced a new set of economic measures to help stabilize the economy during this challenging period. These measures, delivered as part of the Government of Canada’s COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and businesses.

Supporting Canadian Businesses Through the Canada Account

The Minister of Finance would now be able to determine the limit of the Canada Account in order to deal with exceptional circumstances. The Canada Account is administered by Export Development Canada (EDC) and is used by the government to support exporters when deemed to be in the national interest. This will allow the government to provide additional support to Canadian companies through loans, guarantees or insurance policies during these challenging times.

Helping Businesses Keep Their Workers

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.

Flexibility for Businesses Filing Taxes

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.  This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. 

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 most businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.

The Liaison Officer service offers help to owners of small businesses to understand their tax obligations. Traditionally available in-person, this service is now available over the phone and will be customizing information during these challenging times by ensuring small businesses are aware of any changes such as filing and payment deadlines, proactive relief measures, etc.

Ensuring Businesses have Access to Credit

The Business Credit Availability Program (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.

The Office of the Superintendent of Financial Institutions (OSFI) announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets, effective immediately. This action will allow Canada’s large banks to inject $300 billion of additional lending into the economy.

The Bank of Canada also took a series of actions to support the Canadian economy during this period of economic stress, enhance the resilience of the Canadian financial system, and help ensure that financial institutions can continue to extend credit to both households and businesses. This included cutting the interest rate to 0.75% as a proactive measure in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices.

Supporting Financial Market Liquidity

As a further proactive and coordinated measure to bolster the financial system and the Canadian economy, the government announced on March 16 that it is launching an Insured Mortgage Purchase Program (IMPP). Under this program, the government will purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC). This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market. Details of the terms of the purchase operations will be provided to lenders by CMHC later this week.

The IMPP enhances the already substantial set of measures announced on March 13 to support the economy and the financial system. CMHC stands ready to further support liquidity and the stability of the financial markets through its mortgage funding programs as necessary.

Further, the Bank of Canada has announced that it will adjust its market liquidity operations to maintain market functioning and credit availability during the current period of uncertainty in which conditions are evolving rapidly.

The Bank of Canada also announced that it will broaden eligible collateral for its term repo facility to include the full range of collateral eligible under the Standing Liquidity Facility, except for the non-mortgage loan portfolio. This expansion of eligible collateral will provide support to funding conditions for financial institutions by providing a backstop to regular private funding.

The Bank also announced that it stands ready, as a proactive measure, to provide support to the Canada Mortgage Bond (CMB) market so that this important funding market continues to function well. This would include, as required, purchases of CMBs in the secondary market. Similar to the increase in Government of Canada bond buybacks, this will support market liquidity and price discovery.

Service Canada

Service Canada is ready to support Canadians affected by COVID-19 and placed in quarantine, with the following support actions:

  • The one-week waiting period for EI sickness benefits will be waived for new claimants who are quarantined so they can be paid for the first week of their claim
  • Establishing a new dedicated toll-free phone number to support enquiries related to waiving the EI sickness benefits waiting period
  • People claiming EI sickness benefits due to quarantine will not have to provide a medical certificate
  • People who cannot complete their claim for EI sickness benefits due to quarantine may apply later and have their EI claim backdated to cover the period of delay

Work Share Program

New temporary special measures are available to employers impacted directly or indirectly by COVID-19. The measures allow eligible employers to retain skilled employees and workers during the temporary downturn in business due to COVID-19. The temporary special measures will::

  • extend the Work-Sharing agreements by an additional 38 weeks
  • wave the mandatory waiting period between agreements
  • ease the recovery plan requirements
  • Access the Work-Sharing page to learn more about the program and its requirements.
  • Access the Work-Sharing temporary special measures page to find out if you are eligible for temporary special measures.

FINANCIAL ASSISTANCE AND BUSINESS SUPPORT

Announcement from “Big Six” Banks 

  • Effective March 17, 2020, the Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Bank have made a commitment to work with personal and small business banking customers on a case-by-case basis to provide flexible solutions to help them manage through challenges such as pay disruption due to COVID-19; childcare disruption due to school closures; or those facing illness from COVID-19. 

Hydro One Pandemic Relief? 

  • PANDEMIC RELIEF FUND FOR CUSTOMERS - Financial assistance and increased payment flexibility to customers experiencing hardship. The fund is designed to support customers impacted by these events and those that may experience further impacts. Hydro One has also extended the Winter Relief program.  

Facebook Grants for Small Business 

  • Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries - more details coming soon. 

Business Development Bank of Canada 

  • Increased financing available. 

Automaker Leasing and Financing Assistance 

  • Different programs available dependent on the automaker. 

TOOLS & RESOURCES

Bruce County Seminars

Watch for upcoming webinars offered by Business to Bruce online over the next few weeks.

Digital Main Street

A free digital "how to" guide to help you grow your online business.

Canada Chamber of Commerce Pandemic Preparedness

Microsite with tools and resources coming soon

Conference Board of Canada: Insulating for isolation: a mental health checklist for getting through quarantine

TOOLKITS

NEWS & INFORMATION

 

Contact(s)