We’ve had an interesting two years, to say the least. Many businesses and people have taken advantage of the federal and provincial government supports offered to help keep operations and household incomes intact.
As of January 17, 2022, these are the supports available for businesses negatively impacted by the effects of the COVID-19 pandemic.
FEDERAL
There were several ways to access business support funding from the Canadian government in 2020 and 2021. Some of the ongoing funding (like the Canada Emergency Wage Subsidy) have ended, while others continue.
Canada Emergency Business Account
The CEBA program was open for applications from April 9, 2020, to June 30, 2021. It has provided more than $49 billion in liquidity to over 898,000 Canadian businesses.
In January, 2022, the Government of Canada announced the repayment deadline for CEBA loans to qualify for partial loan forgiveness will be extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.
Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).
Outstanding loans would subsequently convert to two-year term loans with interest of 5 per cent per annum commencing on January 1, 2024, with the loans fully due by December 31, 2025.
Canada Emergency Wage Subsidy (CEWS)
CEWS ended effective October 23, 2021 and was replaced by new programs the Hardest-Hit Business Recovery Program (HHBRP) and the Canada Recovery Hiring Program (CRHP).
Current Wage and Hiring Support
This subsidy enables businesses to re-hire workers, help prevent further job losses, and ease your way into normal operations. Starting on October 24, 2021, businesses could apply for wage support through the Tourism and Hospitality Recovery Program (THRP), Hardest-Hit Business Recovery Program (HHBRP), or the Canada Recovery Hiring Program (CRHP).
Tourism and Hospitality Recovery Program (THRP) – Wage
Businesses can apply if they are part of the tourism, hospitality, arts, entertainment, or recreation sectors, or affected by a qualifying public health restriction. Effective: October 24, 2021, to May 7, 2022.
Hardest-Hit Business Recovery Program (HHBRP) – Wage
Eligible organizations, regardless of their sector, may qualify for the HHBRP if they don’t qualify for the Tourism and Hospitality Recovery Program (THRP).
To qualify for the HHBRP, businesses must have a 12-month average revenue drop from March 2020 to February 2021 of at least 50% and have a claim period revenue drop of at least 50%
Through the HHBRP, businesses may be able to get a subsidy to help cover wages (formerly the Canada Emergency Wage Subsidy) and rent (formerly the Canada Emergency Rent Subsidy) and may also qualify for the Canada Recovery Hiring Program (CRHP).
Effective: October 24, 2021, to May 7, 2022.
Canada Recovery Hiring Program (CRHP)
Employers in Canada impacted by the pandemic can apply for a subsidy to cover part of their wages to hire new employees and increase existing employees’ wages or hours.
Each claim period, eligible employers can claim either the higher of the CRHP, or the wage portion of the Tourism and Hospitality Recovery Program (THRP), or the Hardest-Hit Business Recovery Program (HHBRP).
Effective: June 6, 2021, to May 7, 2022.
Canada Recovery Hiring Program (CRHP)
The CRCB provides $500 ($450 after taxes withheld) for up to 44 weeks per household for workers:
- unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19
- because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.
This benefit is available until May 7, 2022.
Work-Sharing Program
The maximum duration of the Work-Sharing program has been extended from 38 weeks to 76 weeks for employers affected by COVID-19.
Highly Affected Sectors Credit Availability Program
This provides businesses heavily impacted by COVID-19, access guaranteed, low-interest loans of $25,000 to $1 million to cover operational cash flow needs. HASCAP is available to businesses that operate in sectors such as tourism and hospitality, restaurants and those that primarily rely on in-person services. Business owners can apply for support until March 31, 2022.
Rent Subsidy
Businesses may be eligible for a subsidy to cover part of their commercial rent or property expenses through the Canada Emergency Rent Subsidy, Tourism and Hospitality Recovery Program or Hardest-Hit Businesses Recovery Program.
Jobs and Growth Fund
This is a $700-million program that supports regional job creation and positions local economies for long-term growth. It dedicates up to $70 million to businesses created after January 2020.
It is set up to support those businesses who:
- support the transition to a green economy
- foster an inclusive recovery
- enhance Canada’s competitiveness through digital adoption to improve productivity and manufacturing processes
- strengthen capacity in sectors critical to Canada’s recovery and growth
If you are Self-Employed:
Canada Worker Lockdown Benefit
This provides $300 a week to eligible workers who are unable to work due to a temporary local lockdown anytime between October 24, 2021 and May 7, 2022 in the region where they live and operate.
It also provides $500 ($450 after taxes withheld) per week for up to a maximum of six weeks, for workers who:
- are unable to work for at least 50% of the week because they contracted COVID-19
- are self-isolated for reasons related to COVID-19
- have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19.
This benefit is available until May 7, 2022.
Canada Recovery Sickness Benefit
This subsidy provides $500 ($450 after taxes withheld) per week for up to a maximum of six weeks, for workers who:
- are unable to work for at least 50% of the week because they contracted COVID-19
- are self-isolated for reasons related to COVID-19
- have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19.
This benefit is available until May 7, 2022.
Canada Recovery Caregiving Benefit
The CRCB provides $500 ($450 after taxes withheld) for up to 44 weeks per household for workers:
- unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19
- because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.
This benefit is available until May 7, 2022.
Click here to access details. We can help with the paperwork, so don’t hesitate to be in touch.
PROVINCIAL – BRITISH COLUMBIA
In addition to federal support, businesses and self employed workers may qualify for one or more of the following:
COVID-19 Closure Relief Grant
This provides fully funded grants to businesses that had to close due to the December 22, 2021 Provincial Health Officer (PHO) orders. Applicants must have been in operation and registered in B.C. as of February 1, 2021 and had to fully close to comply with the December 22, 2021 Provincial Health Officer orders.
Tourism Accommodation and Commercial Recreation Relief Fund
This provides one-time grants to help offset certain fixed costs for large accommodation providers and commercial recreation businesses operating on Crown land or in BC Parks. Eligible businesses must be majority-owned by one or more B.C. residents, not owe any tax payments from before the 2020 tax year and not have permanently ceased operations.
B.C. Increased Employment Incentive
The program offers a refundable tax credit for all private sector B.C. employers to encourage the creation of new jobs for B.C. workers or increased payroll for existing low or medium-income employees. It is calculated at 15% of the amount that the employer’s qualifying B.C. remuneration exceeds the employer’s base B.C. remuneration. It is open to private sector businesses as well as non-profits.
Provincial Taxes
The Province has enacted a PST rebate on select machinery and equipment is a temporary provincial sales tax (PST) program to help corporations recover from the financial impacts of COVID-19.
Employers required to make quarterly instalment payments for the 2020 calendar year for the Employer Health Tax can also defer these payments.
In addition, the BC Government says
- BC Hydro is providing residential and commercial customers the option to arrange flexible payment plans.
- ICBC customers on a monthly Autoplan payment plan can defer their payment for up to 90 days with no penalty.
Get the details on these and other support initiatives on the BC Government’s Economic Recovery website.
If you’re not sure what you qualify for, and don’t want the hassle of filling out the paperwork, we can help. Contact us today.
