Category: Canada

Canada launches new interest-free loan program

In the wake of the COVID-19 pandemic, Canada has launched a new program to support small business owners – barbershops, included. The Canada Emergency Business Account will “provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.”

To qualify, your shop must demonstrate that you’ve…

      • Paid a total between $50,000 – $1 million in payroll during 2019

The program is slated to begin mid-April, and to begin the application process – business owners are instructed to reach out to their respective banks in Canada.

More details can be found here, under the “Access to Credit” subheading.

Apply for this loan through CIBC

Apply for this loan through TB Bank

Apply for this loan through RBC

UPDATED: Available support for barbershops in Canada

UPDATED: Available support for barbershops in Canada

Canada is also taking measures to support local business during these difficult times. 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.

We’ve compiled some resources + tools for our Northern business partners.

Apply for Canada Emergency Response Benefit (CERB)

Receive payment of $2,000 for a 4-week period (the same as $500 a week) for up to 16 weeks through CERB.

To be eligible, you must meet the following requirements:

    • Reside in Canada
    • 15+ years old when you apply
    • You have stopped or will stop working due to reasons related to COVID-19
    • You’ve not quit your job voluntarily
    • You earned a minimum of $5,000 income in the last 12 months or in 2019 from one or more of the following sources:
        • employment income
        • self-employment income
        • provincial or federal benefits related to maternity or paternity leave

NOTE: For at least 14 days in a row for the period you are applying for, you will not receive:

      • employment income
      • self-employment income
      • provincial or federal benefits related to maternity or paternity leave

After you apply, you should get your payment in 3 business days if you signed up for direct deposit. If you haven’t, you should get it in about 10 business days.

For more info on CERB, click here.

 

Canadian Emergency Wage Subsidy 

For businesses, the government has announced the Canada Emergency Wage Subsidy. This would provide a 75-per-cent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.

        • 75 per cent of the amount of remuneration paid, up to a maximum benefit of $847 per week; and
        • the amount of remuneration paid, up to a maximum benefit of $847 per week or 75 per cent of the employee’s pre-crisis weekly remuneration, whichever is less.

**NOTE: Employers are not eligible to claim the Canada Emergency Wage Subsidy for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the Canadian Emergency Response Benefit.**

For more info on the Wage Subsidy, check out this page.

 

Canada’s COVID-19 Economic Response Plan

For individuals…

      • Income support is available, more info here.
      • Flexibility is being extended to taxpayers, read more here.
      • The tax return filing due date will be deferred until June 1, 2020.

For businesses…

  • Resources + tips for helping businesses keep their employees here.
  • Info on tax flexibility for filing businesses here.

NOTE: The Canada Revenue Agency will allow all taxpayers to defer, until after August 31, 2020. No interest or penalties will accumulate on these amounts during this period. 

      • Canada Revenue Agency will recognize electronic signatures as having met the signature requirements.
      • This provision applies to authorization forms T183 or T183CORP.
      • Ensure businesses have access to credit (more info on the program here).

More detailed info can be found here.

 

Additional links:

Key resources for small business owners in Canada following COVID-19. 

The COVID-19 Small Business Help Centre, which includes additional information on…

  • Business Continuity 
  • EI & Employee Income
  • Employee Management 
  • Fraud and business security 
  • Health & Safety
  • Employee Travel