Financial and economic support during Covid-19 outbreak: Federal updates

To support Canadian businesses and individuals facing financial hardship as a result of the health and economic fallout of the global COVID-19 outbreak, the federal government is taking action. Find out how.

Update: March 27, 2020

The government announced changes to support businesses including:

  • an increase to the wage subsidy to 75 per cent for qualifying businesses, up from the original 10 per cent; the new wage subsidy will be backdated to March 15
  • deferring GST/HST payments, as well as duties and taxes owed on imports, until June; the latter is the equivalent of $30 billion in interest-free loans to businesses
  • the launch of the Canada Emergency Business Account for banks to offer $40,000 in government-guaranteed loans, which will be interest-free for the first year and $10,000 will be forgivable

More details on measures will be available from the government soon.
Read more on the new tax measures

Update: March 25, 2020

To support workers whose income will be affected by COVID-19, and to help businesses keep their employees, the federal government introduced a new Canada Emergency Response Benefit. The benefit would provide $2,000 a month for up to four months for workers who lose their income due to COVID-19. Administered by the CRA, the benefit will replace the previously announced two emergency benefits and it does not require employers to sever employment.

For employers considering the temporary wage subsidy, the government has clarified that partnerships and individuals are eligible employers for the wage subsidy. For details, please view the Definitions – subsection (1.02) of the Notice of Ways and Means Motion.

Federal government releases:

Government of Canada Announces Additional Measures to Support Continued Lending to Canadian Consumers and Businesses (March 20, 2020)

Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses (March 18, 2020)

Canada outlines measures to support the economy and the financial sector (March 13, 2020)

Business Development Bank of Canada (BDC):

Support for entrepreneurs impacted by the coronavirus COVID-19

Export Development Canada (EDC):

Government of Canada commits $10B in support of Canadian businesses during health crisis