Government Financial Support During Lockdowns
Please note: the federal government is constantly updating their website as new information is announced. Remember to check Canada’s official coronavirus webpage and CREA’s COVID-19 online hub to stay up to date.
As some provinces re-enter strict lockdowns to combat the spread of COVID-19, here are the financial assistance options currently available to Canadians and Canadian businesses from the federal government:
- the Canada Emergency Wage Subsidy (CEWS), a wage subsidy to help businesses keep and re-hire employees and avoid layoffs. The CEWS has been extended until June 2021.
- the Canada Emergency Business Account (CEBA) provides interest-free, partially forgivable, loans to small businesses and not-for-profits that have experienced diminished revenues due to COVID-19, but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes and wages. The deadline to apply for CEBA is Wednesday, March 31, 2021.
- the Canada Recovery Benefit (CRB), provides income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits. You can apply for a maximum of 13 periods out of the total 26 periods available between September 27, 2020 and September 25, 2021. The 13 periods do not have to be taken consecutively.
- the Canada Recovery Sickness Benefit (CRSB), for workers who are unable to work due to the effects of COVID-19. You may apply for up to a total of two weeks between September 27, 2020 and September 25, 2021.
- the Canada Recovery Caregiving Benefit (CRCB), for workers who are forced to take care of a family member for reasons related to COVID-19. You may apply up to a total of 26 weeks between September 27, 2020 and September 25, 2021.
- the Canada Emergency Rent Subsidy (CERS), which provides rent subsidies directly to businesses, rather than landlords, with a base subsidy rate of up to 65% available on eligible expenses until March 13, 2021.
- the Business Credit Availability Program (BCAP), to provide additional support through the Business Development Bank of Canada and Export Development Canada.
These measures are part of the Government of Canada’s COVID-19 Economic Response Plan. The government is constantly assessing the evolving situation and is likely to introduce additional measures as it deems necessary. We are monitoring the implementation of existing measures and continue to advocate on behalf of REALTORS® as new initiatives are developed.
This article is for information purposes only and is not a substitute for professional advice. If you need professional advice you should consult a lawyer, accountant or other qualified professional.