COVID-19 Economic

Response Plan For Business

CANADA RECOVERY HIRING PROGRAM

At the beginning of the pandemic, when states of emergency were declared across Canada, the federal government introduced a number of programs to provide financial relief and assistance to individuals and to businesses.

As the pandemic has worn on, those programs have been extended and revisions have been made to accommodate changing social and economic circumstances. In the recent federal Budget, additional changes like these were made, and an entirely new program was announced.

To encourage employers to hire new employees or bring back laid-off workers, Budget 2021 proposes a new temporary wage subsidy — the Canada Recovery Hiring Program (CRHP) to provide eligible employers with a subsidy of up to 50% on the incremental remuneration paid to eligible employees between June 6, 2021 and November 20, 2021, as compared to its baseline remuneration paid during the period from March 14 to April 10, 2021.

Who can apply?

An eligible employer will be permitted to claim either the CRHP or the CEWS for a particular qualifying period, but not both.

Employers eligible for the CEWS will generally be eligible for the hiring subsidy. However, a for-profit corporation will be eligible for the hiring subsidy only if it is a CCPC (Canadian-controlled private corporation.)

Other eligible employers would include individuals, non‑profit organizations, registered charities and certain partnerships.  Eligible employers (or their payroll service provider) would be required to have had a payroll account open with the Canada Revenue Agency on March 15, 2020.

How does the subsidy work?

The CRHP will begin in the June 6 – July 3 claim period (Period 17) with a 50% subsidy rate for incremental costs for active employees. The subsidy rate will decrease over the duration of the subsidy, going down to 20% by the October 24 – November 20 claim period (Period 22.)

The amount you get from the subsidy will be equal to that claim period’s subsidy rate multiplied by your incremental costs.

Incremental costs refer to the difference between your baseline payroll and your payroll in a given claim period.

Baseline payroll for every CRHP claim period is equal to your payroll amount from March 14 to April 10, 2021.

Eligible payroll includes salary, wages, and other remuneration for which employers are required to withhold income taxes – and is limited to $1129/week per employee in both the baseline and qualifying period.

Note: The hiring subsidy is not available for furloughed employees.

Claim and Reference Periods

To qualify for a hiring subsidy, an eligible employer would have to have experienced a decline in revenues sufficient to qualify for the Canada Emergency Wage Subsidy in that qualifying period. Since recent changes to the CEWS mean it will not be available from July 4, 2021 onward to retailers with revenue declines of less than 10%, neither will the hiring subsidy.

For qualifying periods where the Canada Emergency Wage Subsidy is no longer in effect, an eligible employer would have to have experienced a decline in revenues of more than 10 per cent.

In other words, the CRHP qualifying revenue decline criteria are generally the same as those under CEWS.  If for your CEWS applications you are using the reference period alternative of an average of January and February 2020 revenue, you will need to use the same approach for the hiring subsidy.

The CRHP differs from the CEWS in three key ways:
  1. The CEWS is being extended for only four additional four-week periods to 25 September, and its subsidy rates are being reduced and phased out starting 4 July, whereas the CRHP will extend for six four-week periods until 20 November 2021.
  2. The CEWS is based upon the eligible remuneration paid by the qualifying employer during the particular qualifying period, whereas the CRHP is based upon the incremental remuneration paid by the employer. Incremental remuneration is the difference between the eligible remuneration paid to the employee during the qualifying period and the eligible remuneration payable to the employee in respect of the baseline period 14 March 2021 to 10 April 2021. The maximum eligible remuneration, like the CEWS, is $1,129/week.
  3. The wage subsidy for which an employer qualifies under the CEWS is based on the revenue reduction percentage the employer has suffered, whereas the CHRP wage subsidy is a fixed percentage per claim period (but to qualify for CHRP, the qualifying employer must have experienced a revenue reduction of more than 0% for the period 6 June 2021 to 3 July 2021 and more than 10% for all remaining periods.

Qualifying employers will need to choose between claiming the CEWS or the CHRP in respect of each qualifying period.

Like the CEWS, an employer has 180 days after the end of the particular qualifying period to file their CRHP application.

How to Apply

Expectations are that the application process will be similar to the process for applying to the CEWS.

The program will begin on June 6, 2021, and will continue for six consecutive four-week periods until November 20, 2021.

Direct links to the CRA application portals will be added to this page when they have been made available.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

 

 

CANADA EMERGENCY WAGE SUBSIDY (CEWS)

The CANADA EMERGENCY WAGE SUBSIDY (CEWS) is a wage subsidy program offered until June 2021 to qualifying employers who have seen a drop in revenue due to COVID-19. CEWS is meant to prevent more job losses by helping you keep your employees on payroll, enabling you to re-hire workers, and facilitating a return to normal operations. If you qualify for CEWS, you will receive a percentage of your employees’ pay subsidized based on your revenue loss.

CEWS is administered by the Canada Revenue Agency (CRA) on a period-by-period basis, with each CEWS Claim Period spanning 4 weeks.

ELIGIBILITY CRITERIA: Nearly ALL businesses are eligible for the wage subsidy. To be eligible, your business must:

  • Have a CRA Business Number issued before March 15, 2020 or a third-party payroll provider who submits your payroll to CRA;
  • Have eligible employees on payroll who receive a T4 slip (includes new hires); and
  • Meet the revenue loss requirement for each claim period.

HOW TO CALCULATE: Each claim period you apply for has its own calculation. Please download our Canada Emergency Wage Subsidy Reference Guide below for full details. For a quick estimate of your CEWS you will need to determine your CEWS rate and multiply it by your eligible employee wages to determine the maximum CEWS amount ($) that your business is eligible for.

There is no maximum dollar amount a business can receive from the program; however, there is a limit on the amount of subsidy you can receive for a single employee’s weekly wages. This limit changes depending on the claim period.

This program is currently legislated to run from March 15, 2020 to June 2021

NEW: Budget 2021 proposes to extend the Canada Emergency Wage Subsidy to September 25, 2021 (Period 20) with the possibility of extending to November 20, 2021 by regulation.

The maximum combined wage subsidy and top-up subsidy for active employees is currently set at 75% through the qualifying period ending on June 5, 2021. The maximum subsidy rate of 75% will be extended to period 17 (June 6 to July 3, 2021) and then gradually decrease to:

  • 60% for period 18 (July 4 to July 31, 2021)
  • 40% for period 19 (August 1 to August 28, 2021)
  • 20% for period 20 (August 29 to September 25, 2021)

In addition, only employers with a decline in revenues of more than 10% will be eligible for the wage subsidy as of July 4, 2021. For more information on the Budget 2021 CEWS Program changes please click here.

APPLICATION DEADLINE: The later of January 31, 2021 or 180 days after the end of each claim period.

NOTE: The Canada Emergency Wage Subsidy received by an employer is considered government assistance and is included in the employer’s taxable income. It is, however, specifically excluded from the definition of revenue for the purpose of the revenue reduction calculation.

HOW TO APPLY: Through CRA’s My Business Account, Represent a Client or the web application form.

For more information on the Canada Emergency Wage Subsidy Program please click here.

For a list of Frequently Asked Questions on the Canada Emergency Wage Subsidy please click here.

For a step-by-step guide on how to apply for the Canada Emergency Wage Subsidy please click here.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

CANADA EMERGENCY RENT SUBSIDY AND LOCKDOWN SUPPORT (CERS)

The Canada Emergency Rent Subsidy (CERS) provides financial assistance for eligible fixed property expenses, including rent and interest on commercial mortgages until June 2021, CERS replaces the previous Canada Emergency Commercial Rent Assistance (CECRA) program that expired on September 26, 2020. CERS is paid directly to the business and is proportional to revenue reduction.

NEW: Budget 2021 proposes to extend the Canada Emergency Rent Subsidy program through the summer, ending September 25, 2021.

The maximum base rent subsidy rate is currently set at 65% through the qualifying period ending on June 5, 2021 (Period 9.) The maximum subsidy rate of 65% will be extended to period 17** (June 6 to July 3, 2021) and then gradually decrease to:

  • 60% for Period 18 (July 4 to July 31, 2021)
  • 40% for period 19 (August 1 to August 28, 2021)
  • 20% for period 20 (August 29 to September 25, 2021)

** Period 17 of the Canada Emergency Wage Subsidy would be the 10th period of the Canada Emergency Rent Subsidy. Period identifiers have been aligned for ease of reference by the Government of Canada and have been updated in the guide detailing the program changes.

The Lockdown Support program rate of 25% will be extended from June 4, 2021 to September 25, 2021.

In addition, only organizations with a decline in revenues of more than 10% will be eligible for the base rent subsidy and the Lockdown Support as of July 4, 2021.

Please click here to view the proposed CERS Program changes.

CERS is administered by the CRA on a period-by-period basis. Each CERS Claim Period is four weeks, and businesses can generally submit a claim the day after the period has ended.

The qualifications and rates largely follow those used for the Canada Emergency Wage Subsidy (CEWS) and, unlike CECRA which has expired; CERS provides relief directly to renters and property owners without requiring the participation of landlords.

The subsidy is available on a sliding scale (with a maximum amount of 65%) for businesses that can demonstrate revenue loss during the qualifying claim period.

NOTE: CERS is based on the amount payable (owed) in each claim period, NOT on the amount paid. However, you must attest to pay your rent bill within 60 days of receiving your CERS.

An additional top-up of 25% (maximum possible subsidy of 90%) is available for businesses that temporarily shut down due to a mandatory public health order issued by a qualifying public health authority. If a location must temporarily close or sees certain activities cease for part of a qualifying period, the subsidy will be prorated in that period for the number of affected days.

NOTE: The Canada Emergency Rent Subsidy received by an employer is considered government assistance and is included in the employer’s taxable income. It is, however, specifically excluded from the definition of revenue for the purpose of the revenue reduction calculation.

HOW TO APPLY: After using the CERS calculator, you must apply through one of the following CRA portals:

WHEN TO APPLY: Businesses need to apply for the rent subsidy after the month has passed. This means, for example, that applications for November support will not be available until December.

APPLICATION DEADLINE: 180 days after the end of each claim period.

To use the Canada Emergency Rent Subsidy Calculator please click here.

For more information on the Canada Emergency Rent Subsidy Program please click here.

For a step-by-step guide on how to apply for the Canada Emergency Rent Subsidy please click here.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

REGIONAL RELIEF AND RECOVERY FUND (RRRF)

The Regional Relief and Recovery Fund (RRRF) is a special relief fund established by the Government of Canada to support businesses and organizations economically impacted by the COVID-19 pandemic. It will help to address gaps left by other measures as part of Canada’s COVID-19 Economic Response Plan, and complement those already provided by other levels of government, as well as take into account regional needs and realities.

This $2-billion Government of Canada fund is available to small and medium-sized businesses the opportunity to apply for loans of up to $60,000 (and in some cases $1 million.) With financing terms similar to CEBA, RRRF loans are interest-free with a forgivable component if the balance is paid before December 31, 2022.

Western Economic Diversification Canada (WD) is collaborating with Community Futures Pan West to deliver the Fund in Western Canada.

The RRRF is administered by Western Economic Diversification Canada (WD) and there are four application processes based on business location, type, and amount of loan requested:

WHO CAN APPLY TO THE RRRF?

There are individual criteria for each of the 4 RRRF programs. Consistencies include businesses and organizations that have either:

  • Applied for other federal relief measures and have not been able to secure funds including other programs within the RRRF funding streams. (i.e.: CEWS and/or CERS); or
  • Accessed COVID-19 relief measures and continue to experience hardship or have ongoing liquidity needs.
  • Primary place of business is located in Western Canada (defined as British Columbia, Alberta, Saskatchewan or Manitoba)

ELIGIBLE USES FOR LOAN FUNDING:
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.

NOTE: The funds from this loan cannot be used to pay expenses already supported through the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.

RRRF REPAYMENT TERMS:

The repayment terms are different if you have received a loan of up to $60,000 or over $60,000.

General Terms of RRRF loans over $60,000 to a maximum of $1,000,000: The contribution is fully repayable.

General Terms of RRRF loans up to $60,000: If you repay the outstanding balance on the RRRF loan of up to $60,000 on or before December 31, 2022 the following percentage of the contribution will be forgiven: 25% on the first $40,000 and 50% on amounts above $40,000 and up to $60,000.

IS THE RRRF LOAN CONSIDERED TAXABLE INCOME?
The Canada Revenue Agency (CRA) requires that RRRF funding be recorded as revenue on a business’ corporate tax return. For more information, RRRF applicants may contact the CRA through their free liaison service.

WHEN TO APPLY: Applications are open now online. They will be accepted and assessed until June 30, 2021 or until the funding runs out, whichever comes first.

The application portal is now online: Apply Now.To determine if you are eligible for the loan program and which RRRF stream is best suited for your business, visit the RRRF Eligibility Assistant.

To access the Regional Relief and Recovery Fund (RRRF) – Application Guide click here.

For more information RRRF Frequently Asked Questions can be found here.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

BUSINESS CREDIT AVAILABILITY PROGRAM (BCAP)

The Government of Canada has established the Business Credit Availability Program (BCAP) to help Canadian businesses obtain financing during the current period of significant uncertainty.  The BCAP will support access to financing for Canadian businesses in all sectors and regions.

Through this program, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will provide $65 billion in direct lending and other types of financial support at market rates to businesses with viable business models whose access to financing would otherwise be restricted including:

  • Loan Guarantees 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 Programs 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 $12.5 million through the program.

This financing support is to be used for operational expenses and is available to both exporting and non-exporting companies.

The Business Credit Availability Program includes:

CEBA (CANADA EMERGENCY BUSINESS ACCOUNT)

Application Deadline – June 30, 2021

Amount Available – Up to $60,000

Who Can Apply – Businesses impacted by COVID-19

How to Apply – Through your business banking institution

Program Details: CEBA is an interest-free loan of up to $40,000. If you repay the balance of the loan on or before December 31, 2022, 25% of the loan will be forgivable (up to $10,000).

CEBA Expansion: an additional interest-free loan of up to $20,000 for businesses who already qualified for the CEBA loan. If repaid by the deadline, up to $10,000 will be forgivable.

NOTE: The forgivable portion of Canada Emergency Business Account received is considered government assistance and is included in the employer’s taxable income.

BDC CO-LENDING PROGRAM FOR SMALL AND MEDIUM-SIZED ENTERPRISES

Application Deadline – June 30, 2021
Amount Available – Between $1 million and $12.5 million
Who Can Apply – Businesses who were directly or indirectly impacted by COVID-19
How to Apply – Through your business banking institution
Program Details: The co-lending program provides additional liquidity support to Canadian businesses. Eligible businesses may obtain incremental credit amounts up to $12.5 million, 80% of which would be provided by BDC, with the remaining 20% coming from a financial institution.

Eligibility Requirements: Your business was directly or indirectly impacted by COVID-19. Prior to the pandemic, your business was financially viable and the financing will be used solely to support operational cash flow requirements, including regularly scheduled debt servicing.
Your financial institution may have further eligibility criteria.

Principal payments can be postponed for up to 12 months.

For more information, click here.

EDC LOAN GUARANTEE FOR SMALL AND MEDIUM-SIZED ENTERPRISES

Application Deadline – June 30, 2021

Amount Available – Determined by your financial institution

Who Can Apply – Businesses who need working capital to cover operational costs due to COVID-19

How to Apply – Through your business banking institution

Program Details: Through the loan guarantee program, EDC will guarantee 80% of new operating credit and cash flow term loans that financial institutions extend to SMEs, up to $6.25million. The program cap for this new loan program will be a total of $20 billion for the export sector and domestic companies.

Eligibility Requirements: You do not need to export to access this program.

The guarantee is for new operating lines of credit or new term loan.

Eligibility requirements and the size of the loan or line of credit is determined by your financial institution.

EDC provides a guarantee for the majority of the money borrowed.

For more information, click here.

BDC MID-MARKET FINANCING PROGRAM

Application Deadline – June 30, 2021

Amount Available – Between $12.5 million and $60 million

Who Can Apply – Medium-sized businesses impacted by COVID-19 and/or the decline in oil and gas prices

How to Apply – Through your business banking institution

Program Details: The Mid-Market Financing Program provides loans between $12.5 million and $60 million for medium-sized businesses impacted by COVID-19 and/or the recent decline in oil and gas prices.

Eligibility Requirements: Your business must have been financially viable before the pandemic and directly or indirectly impacted by COVID-19 and/or the decline in oil and gas prices.

Your business needs more credit than is available through the Co-Lending program or other programs.

Loans between $12.5 million and $60 million are provided jointly by BDC and your financial institution.

For more information, click here.

EDC MID-MARKET GUARANTEE AND FINANCING PROGRAM

Application Deadline – June 30, 2021

Amount Available – Between $16.75 million to a maximum of $80 million

Who Can Apply – Businesses who need working capital to cover operational costs due to COVID-19

How to Apply – Through your business banking institution

Program Details: Through the BCAP, EDC’s Mid-Market Guarantee and Financing Program will bring liquidity to companies who tend to have revenues of between $50 million to $300 million, to     sustain operations during this uncertain period. EDC will continue to work with Canadian financial      institutions to guarantee 75 % of new operating credit and cash-flow loans

Eligibility: These expanded guarantees are available to exporters, international investors and businesses that sell their products or services within Canada.

There will be additional eligibility requirements through your financial institution.

For more information on the EDC Mid-Market Guarantee and Financing Program, click here.

ACCORDEXPRESS

Application Deadline – June 30, 2021

Amount Available – Loans from $20,000 to $250,000

Who Can Apply – Small Businesses only

How to Apply – Through Accord Financial

Program Details: AccordExpress provides loans up to $250,000 to small businesses who have been negatively impacted by COVID-19. Funding available in as little as 3 days.

Eligibility Requirements: The business must have been in business and registered/incorporated for at least 12 months and have a business-only bank account.

The business and each shareholder must have an average or better credit profile, and will provide personal guarantees.

For more information, and instructions on how to apply, click here.

NOTE: Businesses requiring amounts greater than $250,000 (up to $6.25 million) or which have complex structures should apply under the Accord standard BCAP program.

The BCAP program is now available at most Canadian banks and credit unions.

This support is available until June 30, 2021.

NOTE: Any forgivable portions of the BCAP Program are considered government assistance and are included in the employer’s taxable income.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

The Canada Emergency Business Account (CEBA) was created to provide funds to small businesses that have lost income as a result of the COVID-19 pandemic. The program provides much needed credit for small businesses to pay for immediate operating costs such as payroll, rent, utilities, insurance, property tax, or debt service.

CEBA is a loan of up to $60,000 with a forgivable portion of up to $20,000 to help businesses pay their non-deferrable expenses during this challenging period.

These loans are funded by the Government of Canada, interest-free (if repaid before Dec 31, 2022) and provided through financial institutions in cooperation with Export Development Canada (EDC).

HOW MUCH YOUR BUSINESS CAN RECEIVE:

The CEBA program consists of 2 parts, an initial CEBA loan to a maximum of $40,000 and an expansion loan of up to an additional $20,000.

The loan(s) must be repaid before December 31, 2022 to be eligible for the forgivable portion(s).

On a CEBA loan of $40,000 or less, repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000).

If you received the $40,000 CEBA loan and subsequently received the $20,000 expansion, the terms of the loan(s) are:

Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate of 25% on the first $40,000 plus 50% on the amount above $40,000 and up to $60,000.

To clarify, the portion of forgiveness is based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a blended rate of 33%, which is only available if all other amounts outstanding are repaid by December 31, 2022.

In order to be eligible for a $40,000 CEBA loan or $20,000 CEBA expansion loan, an applicant must be an active operating business that is a sole proprietorship, partnership or a Canadian-Controlled Private Corporation (“CCPC”) that was in operation in Canada on March 1, 2020. Other types of business entities are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan.

To determine if your business is eligible for CEBA, you must first assess if your business meets all the basic eligibility requirements below. Then you will have to determine if your business is eligible for either (1) the Payroll Stream OR (2) the Non-Deferrable Expense Stream. You must meet all the basic CEBA eligibility requirements:

  •  You have an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.

  • You have an active business chequing/operating account with your financial institution. If you currently don’t have a business chequing/operating account, you must create one at your financial institution before applying for CEBA.

  • You have not previously used CEBA and will not apply for CEBA at any other financial institution

  • You intend to continue to operate your business or to resume operations

  • You are willing to participate in post-funding surveys conducted by government or any of its agents

NOTE: Please refer to expanded CEBA Program eligibility information in our reference guide available for download below.

Each Financial Institution determines the form of their CEBA loan. For example, the loan may come to you on a credit card, a line of credit, or a term loan; this will be defined in the terms and conditions of your loan. Further questions or concerns about this should be directed to your financial institution.

NOTE: The forgivable portion of Canada Emergency Business Account received is considered government assistance and is included in the employer’s taxable income.

HOW TO APPLY: through your financial institution. For more information, and to see the list of providers, visit the CEBA website.

APPLICATION DEADLINE: June 30, 2021

DOCUMENT UPLOAD DEADLINE: July 14, 2021.For more information on the Canada Emergency Business Account program you can visit BDC here or the Government of Canada here.

To use the Canada Emergency Business Account Eligibility Tool, click here.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

RECOVERY BENEFITS AND INCOME SUPPORT FOR INDIVIDUALS AND THE SELF-EMPLOYED (CRB, CRSB, CRCB)

The Government of Canada has implemented new programs to support Canadians who have lost all or part of their income due to COVID-19 and who are not eligible for EI, these programs replace the Canada Emergency Response Benefit (CERB).

The Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), and the Canada Recovery Caregiving Benefit (CRCB) are three benefits designed to reduce the risk of transmission of COVID-19 by enabling individual employees and the self-employed to access income support. These new benefits were rolled out after the close of the Canada Emergency Response Benefit and will continue supporting Canadians through until fall 2021.

NEW- Proposed Extension of Canada Recovery Benefits: The Budget 2021  proposes to extend the Canada Recovery Benefit (CRB) by providing up to 12 additional weeks of income support to claimants who will begin exhausting their 38 weeks of CRB support on 19 June 2021.

The benefit payment will be equal to $500 per week for the first four additional weeks and will then be reduced to $300 per week for the remaining eight additional weeks.

All new CRB claimants after 17 July 2021 will receive the lower weekly rate of $300 up until 25 September 2021.

In addition, the budget proposes to extend the Canada Recovery Caregiving Benefit (CRCB) by an additional four weeks, up to a maximum of 42 weeks, at $500 per week.

The government will also seek legislative authority to make further extensions, as necessary, to the CRB-related supports (including the CRCB and the Canada Recovery Sickness Benefit) and EI regular benefits up until 20 November 2021.

Updates to the below information will be made when the legislation has passed in the interim the detailed Canada Recovery Benefits Program information remains in effect.

Base Eligibility Requirements for all 3 Programs:

You may be eligible for one of the Recovery Benefits if you:

  • Are not eligible for EI benefits
  • Reside and were present in Canada
  • Are at least 15 years old
  • Have a valid Social Insurance Number (SIN)
  • Have earned a minimum of at least $5,000 in 2019, in 2020, or the previous 12 months.
Canada Recovery Benefit (CRB):
  • Purpose of the program – Provide income support in case of a 50% or more income loss.
  • Who is eligible – In addition to the aforementioned base eligibility requirements, you may be eligible for CRB if you:
    • Have had an average weekly income loss of at least 50% because of COVID-19.
    • Are looking and available for work.
  • You are not eligible for CRB if you:
    • Are eligible for Employment Insurance benefits
    • Have voluntarily left or quit your job
    • Failed to return to work when requested or failed to resume self-employment, if it was reasonable to do so, or declined a reasonable offer to work
    • Received or applied for another benefit for the same eligibility period (e.g., CRSB, CRCB, short-term disability benefits, workers’ compensation benefits, QPIP).
  • Program Benefits – $500 per week for a maximum of 38 weeks ($450 after taxes withheld)
  • How do I calculate the 50% income loss – The 50% income loss is based on your average weekly income from employment or self-employment in 2019, 2020, or the past 12 months. You must ensure that you meet this criterion for each period for which you are applying.
  • For example: If your total income for 2019 or the last 12 months was $26,000.
    • Calculate the average weekly income by dividing the total income by 52 weeks.
      $26,000 ÷ 52 = $500
    • Divide the average weekly income by 50%
      $500 ÷ 2 = $250
  • To calculate self-employment income: your revenue minus any expenses incurred to earn the self-employment revenue and perform the same calculations.
    Employment and/or self-employment income includes, among other things:

    • tips you may earn while working
    • non-eligible dividends
    • honoraria (such as nominal amounts paid to emergency service volunteers)
    • royalties (such as those paid to artists)

The CRA may ask you to provide the following items if you are or were self-employed:

    • Invoice for services rendered that includes:
      • the service date
      • who the service was for
      • the name of the individual or company
    • Receipt of payment for the service or services provided (a statement of account or bill of sale showing a payment and the remaining balance owed)
    • Documents showing income earned from a “trade or business” as a sole proprietor, an independent contractor, or a partnership
    • Any other document that will confirm you earned $5,000 in employment or self-employment income

NOTE: You may earn employment or self-employment income while you receive the CRB. But to make sure the benefit reaches those who need it most, there is a difference in how much you can keep if you earn more than $38,000 in the calendar year (excluding CRB payments). You will have to reimburse $0.50 of the CRB for every dollar of net income you earned above $38,000 on your income tax return. You will not have to pay back more than your benefit amount for that year. This will be due at the same time as your income tax.

NOTE: The government has announced proposed changes to the eligibility criteria that may deny individuals who travelled internationally from claiming the CRB. The changes would apply to eligibility periods starting on or after January 3, 2021.

For more information on the Canada Recovery Benefit Program, click here.

For answers to Frequently Asked Questions, click here.

Canada Recovery Sickness Benefit (CRSB):
  • Purpose of the program – Provide income support for people who do not have paid sick leave.
  • Who is eligible – In addition to the above base eligibility requirements, you may be eligible for CRSB if:
    • You are unable to work at least 50% of your scheduled work week because:
    • You are or may be sick with COVID-19.
    • You are advised to self-isolate due to COVID-19.
    • You have an underlying health condition that puts you at greater risk of getting COVID-19.
    • Are not receiving paid leave from your employer for the same period
  • You are not eligible for CRSB if you:
    • Are eligible for Employment Insurance benefits
    • Have voluntarily left or quit your job
    • Received or applied for another benefit for the same eligibility period (e.g., CRB, CRCB, short-term disability benefits, workers’ compensation benefits, QPIP)
  • Program Benefits – $500 per week for a maximum of 2 weeks ($450 after taxes withheld).

Note: The CRSB allows a worker to receive the benefit for a maximum of 4 weeks during the period September 27, 2020 to September 25, 2021. The weeks do not have to be consecutive.

Under CRSB, weeks are from Sunday to Saturday. You can apply for a period on the first Monday after the end of that said period.

Note: EI sickness benefits can provide you with up to 15 weeks of financial assistance if you cannot work for medical reasons.  You could receive 55% of your earnings up to a maximum of $595 per week.

You must get a medical certificate to show that you are unable to work for medical reasons.

Medical reasons include illness, injury, quarantine or any medical condition that prevents you from working.

For more information on the Canada Recovery Sickness Benefit, click here.

For answers to Frequently Asked Questions, click here.

Canada Recovery Caregiving Benefit (CRCB):
  • Purpose of the program – Provide income support for people who cannot work because they need to care for a child or a family member
  • Who is eligible – In addition to the above base eligibility requirements, you may be eligible for CRCB if:
    • You are unable to work at least 50% of your scheduled work week because you are caring for a family member.
    • You are caring for your child under 12 years old or a family member who needs supervised care because they are at home for one of the following reasons:
      • Their school, day-care, day program, or care facility is closed or unavailable to them due to COVID-19.
      • Their regular care services are unavailable due to COVID-19.
    • The person under your care is:
      • Sick with COVID-19 or has symptoms of COVID-19.
      • At risk of serious health complications if they get COVID-19, as advised by a medical professional.
      • Self-isolating due to COVID-19.
    • You are not receiving paid leave from your employer for the same period.
    • You are the only person in your household applying for the benefit for the week.
    • You are not eligible for CRCB if you:
      • Are eligible for Employment Insurance benefits.
      • Have voluntarily left or quit your job.
      • Received or applied for another benefit for the same eligibility period (e.g., CRB, CRSB, short-term disability benefits, workers’ compensation benefits, QPIP).
  • Program Benefits – $500 per week for a maximum of 38 weeks per household ($450 after taxes withheld).

NOTE: Each household can apply up to a maximum of 38 periods between September 27, 2020 and September 25, 2021. The 38 weeks do not need to be taken consecutively.

For more information on the Canada Recovery Caregiving Benefit (CRCB), click here.

For answers to Frequently Asked Questions, click here.

Amount businesses can receive: The business does not receive any money. The individual (self-employed individual or employee receives:

  • CRB: $1000 every 2 weeks before taxes
  • CRCB: $500 per week before taxes
  • CRSB: $500 per week before taxes

Program Duration: All three recovery programs run from September 27, 2020 to September 25, 2021.

How to apply: Applications for all three recovery programs can be made online through CRA’s My Account or by calling 1-800-959-2019 or 1-800-959-2041.

Application deadlines: The deadline for all three recovery programs is 60 days after the end of the claim period.

NOTE: All three Canada Recovery Benefit Programs are considered taxable income. The 10% tax withheld at source may not be all the tax you need to pay. When you complete your personal income tax return, you may need to pay more (or less), depending on how much income you earned.

The CRA will provide you with a T4A tax slip for any CRA-administered COVID-19 benefit amounts received. For more details: COVID-19 benefit amounts on your T4A slip.

For more information on the Canada Recovery Benefit (CRB), click here.

For more information on the Canada Recovery Sickness Benefit (CRSB), click here.

For more information on the Canada Recovery Caregiving Benefit (CRCB), click here.

Additional questions on the Canada Recovery Benefits, click here for answers to Frequently Asked Questions.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

The Canada-Manitoba Job Grant

The Manitoba government has opened intake for the Canada–Manitoba Job Grant and increased investment to $8 million this year to help more employers with employee training.

The province’s $8 million investment for 2021-22 is an increase of $2.3 million from 2020-21. The Canada-Manitoba Job Grant helps employers offset the costs of training new employees, or costs associated with developing the skills of their existing workers to meet the requirements of their present job, or to attain a promotion.

Eligible employers may apply for up to $10,000 per employee to assist with training costs delivered by a third party. Employers with 100 or fewer employees must contribute a minimum of 25 per cent of training costs, and employers with over 100 employees must contribute a minimum of 50 per cent of training costs. Employers can apply for up to a maximum of $100,000 in funding.

Employers must have a job available for the trainee upon successful completion of the training. For existing employees, the purpose of training should be to upgrade their skills so they may move up to a better job, or meet employer needs in the workplace.

Employers decide who obtains training, what training is required, and which approved third-party trainer will deliver training. The Manitoba government can help employers to determine their workforce and training needs and connect them to job seekers.

Who is eligible to apply for a Job Grant?
  • Private employers
  • Non-profit organizations
  • Industry associations, sector councils, groups of employers
  • Union halls
  • First Nations
  • Municipal governments
Who is not eligible to apply for a grant?
  • K-12 schools and post-secondary institutions funded by provincial/federal sources
  • Federal, provincial and territorial governments
  • Federal and provincial crown corporations and agencies
Who is an eligible training participant?
  • Must be a Canadian citizen or permanent resident of Canada
  • Full-time, part-time, and seasonal employees
  • Unemployed and seeking training to get a job
  • Employees who reside in another province, but are working in Manitoba
How much funding can I apply for?
  • Small companies with 100 or fewer employees can apply for up to 75% of eligible training costs
  • Companies with 101 or more employees can apply for up to 50% of eligible training costs
  • Employers can apply for up to a maximum amount of $10,000 per training participant
  • Maximum Job Grant amount regardless of number of trainees and cost of training is $100,000
What costs are eligible for funding?
  • tuition fees or fees charged by a training provider
  • mandatory student fees
  • textbooks, software and other required materials
  • examination fees
  • travel costs for individuals residing in northern and remote communities to attend training events in Manitoba delivered outside their communities or unavailable online
Who can deliver the training?

Training can be delivered at the workplace, online or in a classroom or training facility and must be provided by a third-party trainer. This could include:

  • post-secondary institutions
  • private vocational institutions
  • sector councils or industry associations
  • union halls
  • equipment manufacturers and other private trainers that have the applicable curriculum, knowledge/ qualifications, and equipment or materials required for training
How is the Job Grant paid to an employer?

The employer is responsible for selecting and paying the trainer. To be reimbursed for the eligible training costs, the employer must submit:

  • Training Plan Report
  • Training Evaluation
  • Proof of payment of eligible training costs (e.g., invoice and cancelled cheque; invoice and PayPal receipt, etc.)
How are grant applications assessed?

All grant applications that meet eligibility requirements will be processed in the order that they are received until the Job Grant has been fully expended.

How can we help?

The Province of Manitoba can assist employers with:

  • identifying their training needs
  • connecting with suitable job seekers
  • completing the grant application
  • information about training delivered by third-party service providers
  • information about other available workforce development programs and services

To access the Canada-Manitoba Job Grant – Employer Fact Sheet, please click here.

To access the Canada-Manitoba Job Grant Application form, please click here.                (The CMJG application is an Excel spreadsheet. It takes time to open. Please be patient. Thank you!)

For answers to Frequently Asked Questions related to the Canada-Manitoba Job Grant, please click here.

Staff from the Manitoba Department of Economic Development and Jobs is available to help companies complete grant applications, develop training plans to meet their business goals, and develop or improve their human resource plans.

Still have questions or need more information?

Manitoba Government Inquiry Tel: 204-945-3744

Toll Free in North America: 1-866-626-4862

Email: mgi@gov.mb.ca www.gov.mb.ca/wd/ites/is/cjg.html

Important Notice:
The Province of Manitoba is currently experiencing technical difficulties receiving emails that have attachments, like the Job Grant application. If you do not receive an email acknowledging receipt of your Job Grant application within 24 hours of emailing it, your email may have been automatically blocked by the government-wide system. If this is the case, please send an email without attaching your Job Grant application to iwdadmin@gov.mb.ca with the Subject: Blocked Email. Say “We did not receive a reply to our email sending our Job Grant application” and include your name and phone number in your email.

The information on this website is based on rapidly developing relief programs and legislative changes, and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continue to evolve.

For the most comprehensive and current information, please review the Province of Manitoba’s COVID-19 supports for business by clicking here.

HIGHLY AFFECTED SECTORS CREDIT AVAILABILTY PROGRAM (HASCAP)

Highly Affected Sectors Credit Availability Program (HASCAP) loans are for small and medium-sized businesses that have seen their revenues decrease by 50% or more as a result of COVID-19. Businesses heavily impacted by COVID-19 can access guaranteed, low-interest loans of $25,000 to $1 million that are exclusively meant to fund the operational cash flow needs of the business and ensure a degree of operations continuity.

HASCAP loans have flexible and competitive terms including a 4% interest rate and a repayment term of up to 10 years.

The loan itself is issued by primary financial institutions in Canada (i.e., the Big 6 banks). HASCAP loans are to be made available to Canadian businesses that operate in hard hit sectors, including hospitality, tourism, restaurants, and those that often rely on in-person services.

Eligible businesses must demonstrate a minimum 50% revenue loss for at least 3 months within the 8-month period prior to your HASCAP loan application. The three months do not need to be consecutive.

Your primary financial institution will determine whether you qualify for this program, based on the eligibility criteria established by the Government of Canada.

Unlike CEBA, HASCAP loans are considered a repayable loan and therefore does not need to be included in your taxable revenue. The program provides loan guarantees to financial institutions and not grants.

NOTE: HASCAP loans cannot be used to pay or refinance existing debts.

PROGRAM DURATION: February 1, 2021 to June 30th, 2021

HOW TO APPLY: First try through your primary financial institution. If your financial institution does not offer the loan, then you can apply through another financial institution who does offer it.

APPLICATION DEADLINE: June 30th, 2021

For more information on the HASCAP program, click here to watch a webinar presented by BDC.

For a list of frequently asked questions on the HASCAP Program please click here.

Ready to speak to a financial advisor to secure a HASCAP loan? Click here to download this one-page HASCAP Guarantee Reference Sheet and have it on hand to help guide your conversation, as you explore ways that the guarantee can help your financial institution consider your request.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

LARGE EMPLOYER EMERGENCY FINANCING FACILITY (LEEFF)

LEEFF is a program instituted by the Government of Canada to provide short-term liquidity assistance in the form of interest-bearing term loans to large Canadian employers who have been affected by the COVID-19 outbreak.

The purpose of this program is to provide liquidity to large employers with a “significant footprint” in Canada that need it as a result of the economic downturn caused by COVID-19 until they can access more traditional market financing.

Note: LEEFF is not meant to provide low-cost lending to firms, nor to rescue companies that were already facing insolvency prior to the pandemic.

Companies that apply for LEEFF will be required to:

  • Respect Collective Bargaining Agreements, including pensions,
  • Follow strict limits on:
    • Executive pay,
    • Share buybacks, and
    • Dividends, and
  • Commit to publishing future climate disclosure reports consistent with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures, as well as provide details of how future operations will support environmental sustainability goals and national climate goals.

LEEFF will be open to large Canadian employers who (a) have a significant impact on Canada’s economy, as demonstrated by (i) having significant operations in Canada or (ii) supporting a significant workforce in Canada; (b) can generally demonstrate approximately $300 million or more in annual revenues; and (c) require a minimum loan size of $60 million based on the applicant’s cash flow needs for the next 12 months. The loan size for each applicant will be assessed on a case by case basis based on demonstrated need.

Large for-profit enterprises in all sectors, except for those in the financial sector, can apply for funding under LEEFF. Certain not-for-profit enterprises, such as airports, could also be eligible. Companies that have been found guilty of tax evasion are not eligible under the program.

HOW TO APPLY: Companies seeking support must commit to minimizing the loss of employment and sustaining their domestic business activities, and must demonstrate that funding under LEEFF forms part of their overall plan to return to financial stability. Broader sectoral dynamics for LEEFF applicants will be considered through processes led by Innovation, Science and Economic Development Canada. Smaller firms are eligible for other Government of Canada COVID-19 Economic Response programs, such as the Business Credit Availability Program or other credit support programs offered by the Business Development Bank of Canada or Export Development Canada.

Applicants should register their interest at applications@ceefc-cfuec.ca with a completed inquiry form. A CEEFC representative will promptly send applicants a non-disclosure agreement, application form and instructions. The application form will request important information relating to the applicant and its financial condition.

Applicants will be contacted by both representatives of CEEFC and ISED Canada to begin the process.

PROGRAM DURATION: The Large Employer Emergency Financing Facility program will be open while the current economic situation persists.For more information on the Large Employer Emergency Financing Facility program, click here.

To view the LEEFF fact sheet, please click here.

For answers to Frequently Asked Questions, please click here.

The information on this website is based on rapidly-developing relief programs and legislative changes and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continues to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan click here.

10% TEMPORARY WAGE SUBSIDY (TWS)

The 10% Temporary Wage Subsidy (TWS) allowed a business to reduce their payroll remittances by 10% of the paid employee wages during the period of March 18, 2020 to June 19, 2020. Over the 90-day period, the limit is $1,375 per employee and $25,000 per employer.

10% Temporary Wage Subsidy Eligibility Criteria:

To be an eligible employer for the TWS, you must meet the following conditions:

  • Individuals (excluding trusts)
  • Partnerships with members who are individuals (excluding trusts), registered charities, other partnerships eligible for the subsidy or eligible Canadian-Controlled Private Corporations (CCPCs)
  • Canadian-Controlled Private Corporation (incorporated) eligible to the small business deduction or non-profit organizations, registered charities

That:

  • Have an existing business number & payroll program account with CRA on March 18, 2020; and
  • Pay salary, wages, bonuses, or other remunerations to an employee in Canada

Read more information on CCPCs and Small Business Deduction.

Calculating the TWS: It is a 10% subsidy, so if you have 2 employees that you pay $1,500 each every two weeks, the subsidy will be $150 * 2 = $300

  • The maximum that you can receive per employee is $1,375
  • The maximum amount of TWSE (Temporary Wage Subsidy for Employers) that an employer can receive is $25,000
How do I receive the 10% Temporary Wage Subsidy for Employers? 
  1. You do not need to apply to the subsidy
  2. Continue to deduct income tax, CPP, and EI from the salary, wages, bonuses, or other remuneration paid to your employees
  3. Calculate the 10% subsidy eligible for the period of March 18 to June 19, 2020
  4. Reduce your current payroll remittance of federal, provincial, or territorial income tax that you send to CRA by the amount of the 10% wage subsidy that you are eligible for
  5. If applying after June 19, 2020, you will have to complete and submit a CRA self-identification form which will help CRA reconcile the subsidy with your payroll program account. If a business has not reduced their remittances, then CRA can credit your payroll program account after receiving the self-identification form

Example: If you have two employees for a total bi-monthly labour cost of $3,000 and you deduct $700 from their pay for the federal and provincial income tax, you will be able to remit to CRA only $400 and keep the remaining $300 for you as you have a subsidy of $300 (as calculated above).

The calculation is the following:

Planned Income Tax remittance – 10% subsidy = New Income Tax remittance

REPORTING THE TWS:

Note: You cannot reduce your remittance of Canada Pension Plan (CPP) contributions or Employment Insurance (EI) premiums when submitting your source payroll deductions. You must continue to remit the CPP contributions and EI premiums you have deducted from your employees’ pay, as well as the employer’s share of the CPP contributions and EI premiums.

If you are an eligible employer that has more than one payroll program account, you must submit all payroll information on separate self-identification forms. You must submit all those forms together, making sure that the total is not more than the maximum subsidy per employee and/or maximum subsidy per employer.

For the TWS, you are considered to have remitted an amount to the CRA that is equal to the amount of the subsidy. Since this amount forms part of your payroll remittance, the CRA will use the information on this form to reconcile the subsidy on your payroll program account. This will ensure that you do not receive a discrepancy notice.

If you have not reduced your payroll remittances during 2020, you can still calculate the TWS on remuneration paid during the identified period and submit the application form(s) at the end of the year.

For more details, see the Frequently Asked Questions from CRA.

You will need to keep information to support your calculations in case CRA asks for them. As well, you need to fill out the PD27 self-identification form for each payroll account. If you reduced your payroll remittances, but it is later determined you were not eligible for the TWS, the CRA will assess you for the income tax you deducted from your employees’ pay but did not remit. This assessment may include penalties and interest.

Note: You must report the total subsidy amount as income on your tax return in the same year you reduced your remittances.

The information on this website is based on rapidly developing relief programs and legislative changes, and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continue to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan.

EI WORK-SHARING PROGRAM

As a Canadian employer who has seen a drop in revenue during the COVID-19 pandemic, you may be eligible for a subsidy to cover part of your employee wages, retroactive to March 15, 2020.

EI Work-Sharing Program Enhancements: The Work-Sharing (WS) Program is an existing Service Canada program which has recently been extended in maximum duration (from 38 weeks to 76 weeks) and eligibility requirements to reflect the needs of Canadian employers and employees during the COVID-19 pandemic.

Changes are in effect from March 15, 2020 to September 26, 2021.

An employer, participating employees, and Service Canada enter into an agreement that the employees will:

  • Work reduced hours;
  • Share available work; and
  • Receive EI benefits to compensate for lost wages
  • The program permits employers to retain experienced workers and avoid layoffs, while employees keep their jobs and maintain their skills

Beyond extending the maximum duration and the eligibility requirements, other recent changes include waiving the mandatory ‘cooling off period’ for employers who’ve already used the program, and reducing the information required upfront during the application process.

To be eligible for the Work-Sharing Program, you must:

  • Have been in business in Canada year-round for at least 1 year
  • Be a private business, a publicly held company, not-for-profit organization, or Government Business Enterprises (GBEs), also referred to as Public Corporations
  • Show a decrease in business activity of approximately 10%
  • Have employees who are eligible to receive Employment Insurance benefits; and who will agree to a reduction of their normal working hours
  • Have a minimum of two employees
  • Be willing to wait 10 days to negotiate your Work-Sharing agreement

AMOUNT BUSINESS CAN RECEIVE: The business does not receive any money. A Work-Sharing agreement allows the business to retain workers at a reduced cost by having employees receive EI to compensate for a part of the wages lost due to a reduction in available work hours.

PROGRAM DURATION: Ongoing. This program is not COVID-specific.

HOW TO APPLY: Via e-mail to Service Canada. Employers are requested to submit their completed applications, and Attachment A form (EMP5101) must be submitted a minimum of 10 business days prior to the requested start date.

Detailed information on the application process can be found here. Applications are submitted by email in Western Canada and the Territories via: EDSC.WT.WS-TP.ESDC@servicecanada.gc.ca.

WHEN TO APPLY: Applications must be made at minimum 10 days before you wish the Work-Sharing agreement to start.

APPLICATION DEADLINE: No deadline, however program rules may change after September 26, 2021.

Key program features:

  • Work-Sharing unit: A WS unit is a group of employees with similar job duties who agree to reduce their hours of work over a specific period of time
  • Equal sharing of work: All members of a WS unit agree to reduce their hours of work by the same percentage and to share the available work
  • Expected work reduction: A WS unit must reduce its hours of work by at least 10% and up to 60%. The reduction of hours can vary from week to week, as long as the average reduction over the course of the agreement is from 10% to 60%
  • Agreement length and extension: A WS agreement has to be at least 6 consecutive weeks long and can last up to 26 consecutive weeks

Employers may be able to extend their agreements up to a total of 76 weeks.

NOTE: For employers and employees participating in a Work-Sharing Program, “EI benefits received by employees through the Work-Sharing program reduce the benefit that their employer is entitled to receive under the Canada Emergency Wage Subsidy (CEWS).”

For more information on eligibility requirements, click here.

The information on this website is based on rapidly developing relief programs and legislative changes, and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continue to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan.

TEMPORARY CHANGES TO EMPLOYMENT INSURANCE BENEFITS AND LEAVE

Temporary changes have been made to the EI program to help you access EI benefits. These changes are in effect until September 25, 2021. The following changes could apply to you:

  • The waiting period may be waived or reduced
  • A minimum unemployment rate of 13.1% applies to all regions across Canada:
    • If your region’s unemployment rate is higher than 13.1%, we’ll use the higher actual rate to calculate your benefits
  • You only need 120 insured hours to qualify for benefits because you’ll receive a one-time credit of:
    • 300 insured hours if you’re applying for regular benefits
    • 480 insured hours if you’re applying for sickness, maternity, parental, or caregiving benefits
  • You’ll receive at least $500 per week before taxes, or $300 per week before taxes for extended parental benefits, but you could receive more
  • If you’re applying for sickness benefits, you don’t need to get a medical certificate
  • If you’re a fisher, we’ll look at the earnings from your 2018, 2019, and 2020 summer or winter seasons to determine your benefit rate and establish your claim for the same season
  • If you received the Canada Emergency Response Benefit (CERB), the 52-week period to accumulate insured hours will be extended

For more answers to frequently asked questions on transitioning to and the temporary changes to Employment Insurance, please click here.

Unsure which programs apply to you? Go to EI benefits and leave to find the benefit type that applies to your situation.

For guidance on how to apply for Employment Insurance please click here.

The information on this website is based on rapidly developing relief programs and legislative changes, and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continue to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan.

SUPPORTS FOR INDIGENOUS BUSINESSES

The Government of Canada has provided $306.8 million in funding to help small and medium-sized Indigenous businesses, and to support Aboriginal Financial Institutions that offer financing to these businesses.

The funding will allow for short-term, interest-free loans and non-repayable contributions through Aboriginal Financial Institutions, which offer financing and business support services to First Nations, Inuit, and Métis businesses.

Financial support for Indigenous businesses will be provided through Aboriginal Financial Institutions, and administered by the National Aboriginal Capital Corporations Association and Métis capital corporations in partnership with Indigenous Services Canada.

Reminder: These Indigenous Businesses can also qualify for, or benefit from, the following previously detailed programs:

  • Canada Emergency Wage Subsidy
  • Canada Emergency Business Account
  • Canada Emergency Rent Subsidy
  • The expansion of the Insured Mortgage Purchase Program
  • The extension of the Work-Sharing program
  • The Business Credit Availability Program
  • Temporary Wage Subsidy

How it works: Up to $40,000 will be available to small and medium-sized Indigenous businesses:

  • An interest-free loan up to $30,000
  • A non-repayable contribution up to $10,000

Contact your Aboriginal Financial Institution to apply for support.

The information on this website is based on rapidly developing relief programs and legislative changes, and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continue to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan.

BLACK ENTREPRENEURSHIP PROGRAM

The Black Entrepreneurship Loan Fund, a component of the Black Entrepreneurship Program (BEP), is a partnership between the Government of Canada, Black-led business organizations and financial institutions. The loan fund is now an investment of $291.3 million to support the success of Black entrepreneurs and business owners.

The first phase of the fund includes a $33.3-million investment from the Government of Canada and $130 million from the Business Development Bank of Canada (BDC). BDC, Vancity and Alterna Savings are the first partner financial institutions in the launch of the Loan Fund.

The second phase of the fund includes an investment of $128 million committed from these financial institutions: the Royal Bank of Canada, BMO Financial Group, Scotiabank, CIBC, the National Bank of Canada, and TD Bank. Additional financial institutions and capital may also be announced in this phase.

The fund will provide loans of up to $250,000 to support Black business owners and entrepreneurs across Canada and lay the foundation for future success and long-term change.

The Federation of African Canadian Economics (FACE) is the legal entity designated to administer the government contribution to the loan fund. It is a federally incorporated not-for-profit created by a group of Black business support organizations (BBSO) from across Canada.

The Business Development Bank of Canada (BDC) has committed $130 million to extend capital to Black entrepreneurs under the loan fund, and has the expertise, knowledge and capacity to work with FACE in administering the loan fund.

Who is eligible under the Black Entrepreneurship Loan Fund?

To be eligible for a loan, an applicant must:

  • self-identify as Black or Black-led (majority ownership of >51% by Black Canadians);
  • be a legal resident of Canada: i.e. Canadian citizen or permanent resident, or conventional refugee (for microloans only), or a legal entity owned and controlled by a Canadian citizen or citizens; and
  • be a minimum of 18 years.

What businesses are eligible under the loan fund?

Eligible businesses may include start-ups and existing for-profit small businesses in Canada. Such businesses can be corporations or sole proprietors and for-profit social enterprises. Businesses must have a business plan, business registration and recent financial statements or financial projections for start-ups.

Any Black business owners and entrepreneurs with questions are encouraged to reach out to FACE for further details.

What businesses are not eligible under the loan fund?

Not-for-profit organizations are not eligible for loans.

What is eligible for financing under the loan fund?

Loans can be used for:

  • Capital investments–equipment, leasehold improvements, property improvement, office equipment
  • Working capital–inventory, payroll, lease payments, accounts management, rent, overhead costs
  • Short-term receivable financing (i.e. financing to service a contact)

What is not eligible for financing under the loan fund?

Loans cannot be used to finance items such as goodwill, restructuring conventional business-related debts, dividend payout, shareholder loan repayment or issuance, bonuses, stock buybacks, option issuance, or an increase to shareholder or management committee compensation.

This list is not exhaustive. When in doubt, speak with your account manager.

Loan criteria:

The loan fund will offer loans up to $250,000. FACE can provide loans of up to $100,000. Loans above this amount will be risk shared with the Business Development Bank of Canada.

Who will process the loan applications?

The processing of loans is shared between FACE and the Business Development Bank of Canada. FACE is the initial entry point for all Black-owned enterprises interested in applying for a loan. Loan applications will be reviewed by FACE, and the underwriting (fulfillment) process will be shared by the Business Development Bank of Canada.

How to apply:

The FACE loan portal, accessible at Federation of African Canadian Economics (FACE), will act as the electronic and initial intake process for interested applicants. Loan applicants will be able to submit and communicate with a FACE client relationship manager on the progress of their loan request.

FACE is committed to turning around applications in a timely manner. Time for turnaround will depend on the type of applications received and the due diligence that is required by the loan administrator and the Business Development Bank of Canada. As a result, the timelines will vary based on individual circumstances.

To apply for the Black Entrepreneurship Loan Fund, please click here.

For answers to Frequently Asked Questions, please click here.

The information on this website is based on rapidly developing relief programs and legislative changes, and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continue to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan.

SECTOR SPECIFIC SUPPORT

The Government of Canada has developed additional sector-specific supports as follows:

Support for Canada’s Food Supply System and Agri-Recovery Initiatives: The Government of Canada is taking action to support producers, processors, and agri-food businesses facing hardship as a result of the global COVID-19 outbreak. The Government of Canada has announced important measures within agriculture programs and an investment of more than $252 million to support farmers, food businesses, and food processors who provide essential services to Canadians every day by ensuring a safe and reliable food supply. The Government of Canada has also announced that the government intends to propose an additional $200 million in borrowing capacity for the sector.

For more information on COVID-19 supports for agriculture and the agri-food industry, click here.

For information on supports for Canada’s Food Inspection Agency, click here.

Emergency Support Fund for Cultural, Heritage and Sport Organizations:

Canadian cultural, heritage, and sport organizations are facing significant financial losses due to COVID-19. They have lost potential revenues from closed facilities or cancelled events. Meanwhile, they are facing challenges accessing Canada’s broader support measures such as the Canada Emergency Wage Subsidy because of unique seasonal revenues and costs.

The new COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations will provide $500 million to help address the financial needs of affected organizations within these sectors so they can continue to support artists and athletes. The Fund will be administered by Canadian Heritage with the support of its partners.

For more information on the Emergency Fund for Cultural, Heritage and Sport Organizations, please click here.

Support for the Tourism and Hospitality and Hospitality Sector: Approximately 750,000 workers depend on tourism and the sector creates 2 per cent of Canada’s gross domestic product (GDP). Small and medium-sized firms dominate the tourism sector, and it employs a higher proportion of youth, women, and Indigenous peoples compared to their share of the workforce.

Pandemic restrictions have taken a toll on Canada’s tourism industry — on jobs, businesses, and communities — and it is expected that the uncertainty will persist into 2021.

See the Highly Affected Sectors Credit Availability Program (HASCAP). This stream would offer 100 per cent government-guaranteed financing for heavily impacted businesses, and provide low-interest loans of up to $1 million over extended terms up to ten years. Rates will be lower than those offered in the Business Credit Availability Program (BCAP) and beneath typical market rates for hard hit sectors.

For more information on the support for the Tourism and Hospitality Sector, please click here.

Supporting Workers in the Live Events and Arts Sectors: Cultural and recreational industries, which employ hundreds of thousands of Canadians, have been particularly hard hit by the pandemic, being among the first to shut down and likely among the last to return to regular activities. Additional investments to the details above Emergency Support Fund for Cultural, Heritage and Sport Organizations:

  • $181.5 million in 2021-22 to the Department of Canadian Heritage and the Canada Council for the Arts to support the planning and presentation of COVID-19-safe events and the arts — including both live and digital — and to provide work opportunities in these sectors. This includes a one-year renewal of funding provided in Budget 2019 for the Building Communities Through Arts and Heritage program, the Canada Arts Presentation Fund, and the Canada Music Fund
  • Additional COVID-19 relief to local television and radio stations by supporting the waiving of broadcasting Part II licence fees in 2020-21, which are collected annually by the Canadian Radio-television and Telecommunications Commission. Waiving these fees will provide up to $50 million in relief to these companies, helping them to stay afloat and maintain their broadcasting offerings to Canadians
  • The Government of Canada understands that certain major live events and festivals will require unique support and will be working with the industry to prevent the closure of unique and irreplaceable flagship events and festivals across Canada, and to ensure the survival of key, globally recognized assets in this sector
  • To address the impact of COVID-19 on film and television productions across the country, the Government of Canada has announced a $50 million Short-Term Compensation Fund. This initiative is compensating for the lack of insurance coverage for COVID-19-related filming interruptions and production shutdowns.

COVID-19 resources for Canada’s Natural Resources Sectors: Canada’s energy sector is facing significant challenges as it is dealing simultaneously with a surge in global crude oil supply and a decline in demand as a result of the broad economic slowdown brought on by the COVID-19 pandemic.

To support Canadians working in the energy sector through these challenges, the Government of Canada will take new targeted actions totalling more than $2 billion to create and protect jobs and important environmental benefits, as well as make available new tailored credit solutions for small and medium-sized companies in the sector. The targeted actions are expected to retain and create approximately 10,000 well-paying jobs in the sector.

Canada’s energy sector is a significant contributor to our national economy. In light of this, and the challenging economic circumstances facing the sector and the regional economies dependent on it, the Government of Canada will provide funding to sustain jobs in the energy sector while cleaning up the environment by working to clean up orphan and inactive oil and gas wells.

For more information on the support for Canada’s Natural Resources Sectors, click here.

Reminder: These industry sectors can also qualify for, or benefit from, the following previously detailed programs:

  • Canada Emergency Wage Subsidy
  • Canada Emergency Business Account
  • Canada Emergency Rent Subsidy
  • The expansion of the Insured Mortgage Purchase Program
  • The extension of the Work-Sharing program
  • The Business Credit Availability Program
  • Temporary Wage Subsidy

The information on this website is based on rapidly-developing relief programs and legislative changes, and is produced by Manitoba Business Matters as an information service to Manitoba businesses. It is not intended to substitute professional advice.

These summaries will be updated as support programs and legislation continue to evolve.

For the most comprehensive and current information, please review the Government of Canada’s COVID-19 Economic Response Plan.

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Closing Soon! Regional Relief and Recovery Fund

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3 days ago
Are you a MB employer hiring youth this season for seasonal/PT/FT employment? @MBGov Youth Jobs Program can provide up to 50% wage subsidy on all eligible wages paid to approved employees b/w May 1 and Sept. 5, 2021.

Learn more: https://t.co/5tKwvhvKIF https://t.co/RpNspRAQkr
2 days ago
JUST TWO DAYS REMAIN TO APPLY! We've opened up a new intake for the #COVID19 Restaurant Relief Program in conjunction with @ManitobaRFA! Phase 3 is open to June 20 to NEW applications from fast casual restaurants. Assess your eligibility & apply: https://t.co/luXIVNKkvJ https://t.co/KYkiUP0FCL
2 days ago
Manitoba's path to lifting current public health order restrictions is through vaccination. The quicker people are vaccinated, the quicker MB can get back to business and enjoy the summer we're looking forward to!

Lets move that needle MB! Book your appt: https://t.co/RYZsyBWaLC https://t.co/jsXHCMdDUw

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