New Canada Emergency Commercial Rent Assistance | Canada Emergency Business Account Expanded

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Canada Emergency Commercial Rent Assistance

On April 16th, Prime Minister Justin Trudeau announced support for to help small businesses with their rent for the months of April, May and June.

The program is being worked out with the provinces and more details will be available shortly.

“Businesses and Commercial property owners are also facing specific challenges because of COVID-19 so we plan on introducing the Canada Emergency Commercial Rent Assistance. This program will provide support to help small businesses with their rent for the months of April, May and June. To implement this program we have to work with the provinces and territories as they govern rental relationships and we hope to have more details very soon” – PM Justin Trudeau

Canada Emergency Business Account

The eligible amounts are being expanded to include businesses with 2019 total payroll between $20,000 – $1.5 million.

There are restrictions on the funds can be used. From their website https://ceba-cuec.ca/:

“The funds from this loan shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.”

Click to Get Full Details

Expanded eligibility for Canada Emergency Response Benefit (CERB) & Boosted wages for Essential Workers

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From his speech this morning (April 15th), Prime Minister Justin Trudeau announced:

“Today, we’re announcing more help for more Canadians. This includes topping up the pay of essential workers. At the same time, we’ll also be expanding the Canada Emergency Response Benefit to reach people who are earning some income as well as seasonal workers who are facing no jobs and for those who have run out of EI recently. Expanding the CERB to include people who earn up to $1,000 per month. Maybe you’re a volunteer firefighter, or a contractor who can pickup some shifts, or you have a part-time job in a grocery store.”

Eligibility for CERB

On eligibility for CERB, the Prime Minister stated:

“If you earn $1,000 or less a month, you’ll now be able to apply for CERB.

If you were expecting a seasonal job that isn’t coming because of COVID-19, you’ll now be able to apply.

If you’ve run out of EI since January 1st, you can now apply for CERB as well

And for others who still need help, including post secondary students and businesses worried about commercial rent, we’ll have more to say to you very soon.”

Wage Boost for Essential Workers

On topping up wages for Essential Workers, PM Justin Trudeau said:

“Our government will work with the provinces and territories to boost wages for essential workers who are making under $2,500 a month, like those in our long-term care facilities”

The government website is being updated with the new qualifications, for full details and to apply click below:

Apply for CERB

Applications for the Canada Emergency Business Account starts TODAY!

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The new Canada Emergency Business Account (CEBA) is available starting TODAY and is available through major banking institutions: TD, Scotiabank, BMO, CIBC, RBC, National Bank, HSBC and Canadian Western Bank.

The CEBA 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 until December 31, 2022. Up to $10,000 of that amount will be eligible for loan forgiveness if $30,000 is fully repaid on or before December 31, 2022.

Eligibility

Organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019

How do I apply?

Prior to applying, please make sure you have this information readily available:

  • Canada Revenue Agency Business Number (BN 15 digits)

  • 2019 T4 Summary of Remuneration Paid (T4SUM)

Apply online at the financial institution your business banks with:

Rules changed to allow more struggling business owners access to CERB, Wage Subsidy. Summer jobs program increased to 100%

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Accepting Applications starting April 6th – Canada Emergency Response Benefit (CERB)

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The sheer volume of applications for the Canada Emergency Response Benefit (CERB) will likely overwhelm the system. If you or someone you know need to apply for this benefit, we suggest you prepare TODAY before the applications begin:

  • Double check your myCRA account username and password

  • Direct Deposit is setup

    • 3 – 5 days via Direct Deposit vs 10 days via cheque in the mail

You should double check your myCRA username and password by signing in at:

CRA website

If you do not have direct deposit setup with CRA, you can set it up TODAY at:

setup direct deposit with cra

To help manage the volume, the CRA has setup specific days for you to apply based on month of birth.

If you were born in the month of:

  • January | February | March: Mondays – Best day to apply is April 6th

  • April | May | June: Tuesdays – Best day to apply is April 7th

  • July | August | September: Wednesdays – Best day to apply is April 8th

  • October | November | December: Thursdays – Best day to apply is April 9th

  • Fridays, Saturdays and Sundays are open for any birth month

Eligibility

The benefit will be available to workers:

  • Residing in Canada, who are at least 15 years old;

  • Who have stopped working because of COVID-19 and have not voluntarily quit their job or are eligible for EI regular or sickness benefits;

  • Who had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and

  • Who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment or self-employment income.

Alberta: Emergency isolation support

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Eligible working Albertans can receive a one-time emergency isolation support payment of $1,146 if they are required to self-isolate or are the sole caregiver of someone in self-isolation and they have no other source of pay or compensation.

This is a temporary program to bridge the gap until the Federal Emergency Care Benefit is available in April.

Eligibility

You are eligible for the emergency isolation support program if you:

  • have experienced total or significant loss of income and are not receiving compensation from any other source because you:

    • have been diagnosed with COVID-19

    • have been directed by health authorities to self-isolate

    • are the sole caregiver of a dependent who is in self-isolation

You are not eligible for this program if you:

  • were not working immediately before you were advised to self-isolate

  • can work from home

  • are not experiencing a significant loss of income as a result of self-isolation

  • are currently collecting other forms of income support or employer benefits while self-isolated, such as:

  • are staying home to care for a dependent who is home for a reason other than self-isolation

  • reside outside of Alberta

If you are not eligible for this program, other supports are available.

The system is running periodically to manage the flow of applications. Check the link below periodically:

Apply for Emergency Isolation Support

Do I Qualify for the Canada Emergency Response Benefit & EI?

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To help Canadians through this difficult time, the Federal Government created the Canada Emergency Response Benefit (CERB) and made changes to the Employment Insurance Program (EI). For those whose employment has affected by the Coronavirus, we have created a chart to help you figure out which program you qualify for and provide links to apply for each program.

The Federal Government has already made numerous changes to these programs so we will be updating this document whenever a change to the program is made.

Stay home and stay safe.

Help for Small/Medium Businesses & Entrepreneurs – 75% wage subsidy, $40,000 interest-free loan & more

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March 27, 2019 – Prime Minister Justin Trudeau announced programs and measures focused on helping Small & Medium Sized Businesses and Entrepreneurs cope with the economic consequences caused by the COVID-19 pandemic.

“With these new measures, our hope is that employers being pushed to laying off people due to COVID-19 will think again,” Trudeau said. “And for those of you who have already had to lay off workers, we hope you will re-hire them.”

Wage Subsidy increased to 75%

The Prime Minister has been under pressure from the small business community to boost the wage subsidy beyond the 10% initially announced to help keep people employed. Today, Mr. Trudeau announced the government will increase the wage subsidy from 10% to 75% to help keep employees on the payroll. This increase will be backdated to Sunday, March 15th.

“It is clear we have to do more, much more so we are bringing that percentage up to 75 per cent for qualifying businesses”

– Prime Minister Justin Trudeau

Canada Emergency Business Account (CEBA)

The CEBA will allow banks to offer $40,000 loans that will be interest-free for the 1st year which will be guaranteed by the government. If you meet certain conditions, $10,000 of the loan can be forgivable.

“To help you bridge to better times, we are launching the Canada Emergency Business Account. With this new measure banks will soon offer $40,000 which will be guaranteed by the government”

Defer GST, HST, Duty

The government will defer GST & HST payments, as well as duty and taxes owed on imports until June 2020.

“This is the equivalent of giving $30-billion of interest free loans to businesses”

Bank of Canada Rate Cut

Bank of Canada slashed its key overnight interest rate to 0.25%.

Full details and qualification requirements will be available on Monday.

Canada Emergency Response Benefit to help workers and businesses

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$2,000/month for 4 months – Canada Emergency Response Benefit to help workers and businesses

To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.

The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.

The EI system was not designed to process the unprecedented high volume of applications received in the past week. Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need.

Canadians who are already receiving EI regular and sickness benefits as of today would continue to receive their benefits and should not apply to the CERB. If their EI benefits end before October 3, 2020, they could apply for the CERB once their EI benefits cease, if they are unable to return to work due to COVID-19. Canadians who have already applied for EI and whose application has not yet been processed would not need to reapply. Canadians who are eligible for EI regular and sickness benefits would still be able to access their normal EI benefits, if still unemployed, after the 16-week period covered by the CERB.

The portal for accessing the CERB would be available in early April.

Canadians would begin to receive their CERB payments within 10 days of application. The CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020.

Canada Emergency Response Benefit

Coronavirus & Market Uncertainty- What you should do.

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Over the last week, the financial market has taken a downturn amidst fears over Coronavirus. The S&P 500 had its worst weekly drop since the financial crisis in 2008, after setting all-time highs the prior week.*

Understandably, investors are anxious about their money. If you are concerned with your portfolio, you’re not the only one, however during times of market volatility, it’s important to stay levelheaded to avoid making financial missteps.

Keep Calm

In situations like these, it’s important to keep perspective. This is not the first time the market has taken a downturn, market corrections are a natural part of the investment cycle and over long term, individuals that remain invested can use the volatility as an opportunity to buy will be rewarded.

The media can make it seem like each market downturn is worse than before. In reality though, volatility doesn’t hurt investors but if selling in a downturn, it will lock in losses.

Keep Up-to-Date

Currently, there isn’t enough information to know how the Coronavirus will affect the market, over the short, medium and long term however it’s important to know that the financial market doesn’t like uncertainty. Therefore, as further developments come to light, there will likely be a correction to the market.

How have markets reacted to virus outbreaks in the past?

The table and chart below, show how the S&P 500 has performed during similar virus outbreaks in the past. While the impact can be negative, the long-term impact has been limited. In all past scenarios markets were higher 12 months after the virus was identified.**

Source: Bloomberg Finance L.P., CitiResearch, FactSet. As at February 27, 2020. The starting date for the 12-month return is
the month each virus was identified.

Keep in mind your portfolio is diversified

We know market downturns can be stressful and being bombarded by media reports doesn’t help but keep in mind your portfolio is diversified It’s important to remember that your portfolio is tailored to your unique investment time horizon, personal situation and financial goals. If you do have questions about your portfolio, please don’t hesitate to contact us.

Review your investments

This is a good time to review all your investment accounts including your TFSA, RRSP or RRIF to ensure you are diversified. If you haven’t reviewed the accounts that we don’t manage, please reach out to our office and we can provide you with recommendations that align with your financial goals.

Keep in touch

We’re here for you and hope to serve you by helping you make objective and educated financial decisions. These decisions will help you stay the course so you can achieve your financial goals.

If you have friends or family that need help with their investments, we are happy to offer a complimentary review. We will discuss what their financial goals are and what makes the most sense for their situation. Often by working with a financial advisor, it can help them feel more confident about their finances.

At any time, should you wish to discuss or review your investments, please contact us. We’re here to support you.

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