The Government announced the establishment of new measures to help with COVID-19.
They range from rent assistance (direct to business owners) to an additional $20,000 CEBA loan, to new benefits (that replace the CERB). These include:
- Canada Emergency Rent Subsidy is being put in place to directly fund businesses who pay commercial rent, who have a revenue drop, until June 2021.
- The scale is sliding for greater or lesser need, as a result of consultations. Businesses with a revenue drop of 70% or more will receive up to 65% of their rent expenses. If less, the support will reduce accordingly.
- Or up to 90% of their expenses if they are mandated to shut their doors temporarily by order of local Public Health.
- The benefit will flow through the CRA
- The Canada Emergency Wage Subsidy is being extended to June 2021 and changing the rate to 65% (until December 19th).
- CEBA Account will be topped up for businesses who are already eligible who will have to attest to attributable losses due to the Pandemic, for an additional loan for $20,000 (including a possible $10,000 grant with repayment by June 30, 2022). The limit to apply has been postponed to December 31, 2020. The opening date to apply will be announced in the next few days.
- In recognition of the challenges that smaller jurisdictions face, $37 million in top up will be included as part of the first payment for the Safe Restart Agreement to the territories. $21.4 million will also go towards air carriers for services to remote communities in the north
- The Canada Recovery Sickness And Caregiver Benefits are able to be accessed for those who have to self-isolate without benefit payments or those who have to care for others.
The new Canada Recovery Benefit took effect October 12th to replace the CERB. It will pay $500/week for a maximum of 26 weeks for those people who lost income as a result of COVID-19 and who don’t qualify for EI. The Recovery Caregiving and Sickness Benefits were announced last week.
Initially users experienced issues in accessing the benefit, including error messages appearing on the CRA, however applications are being accepted.
Here is the government release on the new measures
Patricia
patricia@growvantage.com
Business Mentor at Grow Vantage
Patricia is the Business Mentor and owner of Grow Vantage and a Past President of the Barrie Chamber of Commerce. She applies over 30 years of business experience (from start-up to corporate) to mentor entrepreneurs. Since 2011, she has held over 4,500 coaching and training sessions in Barrie, Ontario. Through Grow Vantage, her entrepreneurial training program, and as a business coach, she works with business owners to design, launch and grow their businesses; teaching strategies in marketing, sales, communications, and finance, and techniques to increase productivity, and manage their businesses. In other words, what entrepreneurs need to learn to grow and run their businesses successfully, grow their networks, and avoid costly mistakes.
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