Recent COVID-19 Measures for Businesses
In recent days, the federal government has made a few announcements relating to COVID-19 support measures for Canadian businesses. All of these new announcements are summarized below.
Large Employer Emergency Financing Facility Opens
On May 20, 2020, the government announced the opening of the application process for the government’s Large Employer Emergency Financing Facility (LEEFF). The program will support Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing. The LEEFF will be delivered by a subsidiary of the Canada Development Investment Corporation (CDEV), in cooperation with Innovation, Science and Economic Development Canada (ISED) and the Department of Finance. Additional information on the application process is available on the CDEV website. Broader sectoral dynamics for LEEFF applicants will be considered through processes led by Innovation, Science and Economic Development Canada.
Expanded Eligibility for the CEBA
On May 19, 2020, the federal government announced the expansion of the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses. To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:
- a business operating account at a participating financial institution
- a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
- eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.
Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions. More details, including the launch date for applications under the new criteria, will follow.
CECRA Opening May 25, Criteria Update
On May 20, 2020, the federal government announced that Canada Emergency Commercial Rent Assistance (CECRA) applications will open on May 25, 2020. Moreover, additional information pertaining to the criteria has been added to the Canada Mortgage and Housing Corporation (CMHC) website.