Financial and Credit Support
Canada Emergency Business Account
The Canada Emergency Business Account (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.
Several updated have been announced for the CEBA since its initial announcement:
- Businesses that spent between $20,000 and $1,500,000 on payroll in 2019 will now be eligible to apply for the Canada Emergency Business Account.
- Self-employed business owners may also now apply for support from the Canada Emergency Business Account through their banks and credit unions.
- In May the Government of Canada announced an expansion to the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses. The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.
- In June the Government of Canada announced that applications will be accepted so that more small businesses can access the Canada Emergency Business Account (CEBA). This means that owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll will become eligible to apply as of June 19, 2020.
To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:
- a business operating account at a participating financial institution;
- a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return;
- eligible non-deferrable expenses between $40,000 and $1.5 million; and
- eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.
Business Credit Availability Program (BCAP)
The Government of Canada has established a Business Credit Availability Program (BCAP) to provide $65 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). BDC and EDC are working with private-sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exportation and tourism. This program includes:
- Loan Guarantee for Small and Medium-Sized Enterprises:
EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs.
- Co-Lending Program for Small and Medium-Sized Enterprises:
BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.
COVID-19: Supports for Canadian Businesses
The Business Development Bank of Canada has developed “COVID-19: Supports for Canadian Businesses”, a compilation guide of federal and provincial government support measures for businesses.
The Business Development Bank of Canada has created a toolkit of templates to help businesses minimize the risk that an emergency poses to operations and bottom line.
ACCESS THE TOOLKIT
Small Business Credit and Support Program
The Province of Nova Scotia has announced details on the Small Business Credit and Support Program as a temporary stream for access to credit, cash grants and support delivered through participating credit unions. To be eligible, small businesses must have a payroll less than $20,000 in the previous fiscal year and have experienced a decline in revenue from sales of at least 15 per cent in March or at least 30 per cent in April, May or June.
Eligible small businesses can get a loan of up to $25,000 through participating provincial credit unions. The loan application will be available from 29 April to 30 June 2020.
If approved for the loan, eligible businesses will also be eligible for:
- a one-time grant of up to $1,500
- a business continuity voucher of up to $1500 – the voucher gives businesses access to professional advice and support to help adapt to or recover from the effects of COVID-19. The voucher program is administered by Nova Scotia Business Inc. and will be available until 29 May 2020. Projects funded by the program must be completed by 3 July 2020.
The program will be available starting Wednesday, April 29
ACCESS APPLICATION AND ELIGIBILITY
Small Business Loan Guarantee Program
The Small Business Loan Guarantee Program is a joint initiative of the Nova Scotia Co-operative Council, Atlantic Central, local participating credit unions, and the Province of Nova Scotia, designed to deliver financial assistance for the start-up and expansion of small businesses. The Small Business Loan Guarantee Program supports provincial business owners with creating and maintaining rewarding careers for Nova Scotians each year.
- Loans may be granted for a term of up to of 10 years.
- The maximum guarantee supplied by the Province of Nova Scotia will be 90 percent of the value of all term loans.
- The guarantee will remain at 75 percent on lines of credit but a 90 percent guarantee may be available to those that qualify under special financing streams.
Grant Thornton has developed and launched an online hub to help guide businesses through COVID-19’s impacts. The hub includes a number of videos, insights, and links.
VIEW THE HUB
Grant Thornton has also developed a summary document on the Canada Emergency Wage Subsidy which can be found below.
VIEW SUMMARY DOCUMENT
Sydney Credit Union
The Sydney Credit Union has developed a summary document detailing various business relief programs, including deferrals, new capital, grants, labour & employment, wage subsidies, and other solutions.