The following note has been updated to include the latest information on federal support measures in response to COVID-19.
Below is a brief summary of some of the actions the federal government has taken to date to support individuals, businesses, non-profit organizations, charities, and vulnerable populations in light of the impacts of COVID-19. You will already be aware of most if not all of these measures.
The government has been clear in saying that it is ready to announce additional measures as the situation evolves.
Some of the measures outlined below can be found using the following search tool:
https://covid-benefits.alpha.canada.ca/en/start
Assistance for Wage-Earners, Contract Workers, Part-time Workers, Seasonal Workers and the Self-Employed
The government has announced broad-based income support for individuals left without income as a result of COVID-19. In addition to covering those already eligible for Employment Insurance (EI), the new Canada Emergency Response Benefit (CERB) covers wage-earners, contract workers and self-employed individuals not otherwise eligible for EI.
On April 15, the Prime Minister announced the CERB would be expanded to cover those who continue to work part time and earn up to $1,000 per month. In addition, the CERB is being extended to seasonal workers who have exhausted their EI benefits and are unable to undertake their usual seasonal work as a result of COVID-19. Namely, workers who have exhausted their EI benefits between December 29, 2019 and October 3, 2020 are now also be eligible for the CERB.
More details on the CERB, including how to apply, can be found at the following link:
https://www.canada.ca/en/services/benefits/ei/cerb-application.html
In addition to applying for the CERB through a My CRA account or My Service Canada account, it is possible to apply by phone at 1-800-959-2019 or 1-800-959-2041.
Those who have not yet received their account security code by the mail can apply for the CERB with the “light” version of My Account. However, it will not be possible with this version to make changes to direct deposit and/or address information during the application process. That said, many banking portals include a link to set up direct deposit with CRA.
Income Support for Frontline Workers
In recognition of the demands the pandemic is placing on those working on the front lines, the federal government will provide up to $3 billion to support provincial measures to top up the wages of low-income essential workers. Each province or territory will determine which workers will be eligible for support and how much support they will receive. The following link provides details of the Quebec government’s wage top-up program for essential workers:
Consumer Loans
The government has provided extra liquidity to the financial sector to allow institutions to be flexible with loan-payment requirements, including in relation to mortgages. Canada’s large banks have confirmed that they will offer up to a six-month payment deferral for mortgages. Individuals can also negotiate with their bank to convert high-interest credit-card debt into lower-interest loans. The Prime Minister has asked banks to reduce interest rates on credit card balances and many have done so.
Support for Families, Seniors, Canadians with Disabilities, and Low- and Modest-Income Canadians
The government is increasing the maximum Canada Child Benefit by $300 per child for the 2019-2020 benefit year. Qualifying parents will receive the extra amount as part of their May payment.
A special payment of the GST tax credit was provided on April 9 to low- and modest-income individuals. The average payment was $400 for single individuals and $600 for couples.
The minimum Registered Retirement Income Fund (RRIF) withdrawal rate has been reduced by 25 percent for 2020 to provide seniors with greater flexibility and protection for their savings.
The government has announced a one-time tax-free payment of $300 for seniors who are eligible for the Old Age Security (OAS) pension, with and an additional $200 for seniors eligible for the Guaranteed Income Supplement (GIS). This payment is scheduled for July 6.
The Prime Minister has also announced a one-time payment of $600 for persons with disabilities. This payment will go to those who are valid Disability Tax Credit certificate holders as of June 1, 2020 (should legislation before Parliament be adopted). For certificate holders who receive OAS, the payment will be $300; those who receive OAS and the GIS will receive a payment of $100.
Helping Students
The government has announced the Canada Emergency Student Benefit (CESB) to help post-secondary (including Cegep) students who were counting on summer jobs or new careers to make ends meet but are not eligible for the Canada Emergency Response Benefit (CERB). This new benefit will provide $1,250 per month from May through August for eligible students and $1,750 for those with dependents or permanent disabilities. Students who graduated in December 2019 or who are planning to start their studies in the fall are eligible for this support. Students can receive the benefit and still earn up to $1,000 each month. Information on the CESB is available at the following link:
https://www.canada.ca/en/revenue-agency/services/benefits/emergency-student-benefit.html
Students can apply (from May 15 onward) at:
Students who cannot create a My CRA account because they have not previously filed a tax return can apply by phone at 800-959-2019 or 800-959-2041. When calling, they will need to have on hand their Social insurance Number (SIN), postal code and phone number.
The government is also creating the new Canada Student Service Grant to help students gain valuable work experience and skills while they help their communities during the COVID‑19 pandemic. Students who choose to do national service and serve their communities can be provided up to $5,000 for their education in the fall.
The government will double the Canada Student Grants (available through the provinces) for all eligible full-time students to up to $6,000 and up to $3,600 for part-time students in 2020-21. The Canada Student Grants for Students with Permanent Disabilities and Students with Dependents will also be doubled. Information on Canada Student Grants can be found at the following link:
https://www.canada.ca/en/services/benefits/education/student-aid/grants-loans.html
The Canada Student Loans Program (CSLP) will be enhanced by raising the maximum weekly amount that can be provided to a student in 2020-21 from $210 to $350. Additional compensation will be offered to provinces (e.g. Quebec) and territories that do not participate in the CSLP.
Also to further help students facing increased financial pressure because of the economic impacts of COVID-19, the government has suspended repayments and interest under the Canada Student Loans program until September 30. The Quebec government has done likewise:
https://www.quebec.ca/en/education/student-financial-assistance/repayment/
The federal government has enhanced the Canada Summer Jobs (CSJ) program, which every year subsidizes small businesses, community groups and public employers like municipalities that hire summer students.
Namely, the wage subsidy under CSJ has been increased to 100 percent of the provincial or territorial minimum hourly wage for each employee. Also, employers can now extend the period of employment to February 28, 2021 and hire on a part-time basis. Employers who have applied to this year’s program will be permitted to adapt their projects and job activities to either directly or indirectly support essential services in the context of COVID-19.
Information on CSJ openings to date in participating organizations in Lac-Saint-Louis is available at the following link:
https://www.jobbank.gc.ca/youth
Assistance for Businesses, Non-Profit Organizations and Charities
To help businesses, non-profit organizations and charities, the government is introducing a 75-percent temporary wage subsidy on the first $58,700 earned, retroactive to March 15, 2020 and up to August 29, 2020. The subsidy will be available to organizations whose revenues have decreased substantially because of COVID-19. An organization’s number of employees will not be a criterion for eligibility for the subsidy.
To qualify, organizations (businesses, non-profits, charities) must have experienced a drop in gross revenues of at least: 15 percent in March 2020 versus March 2019; 30 percent in April 2020 versus April 2019; 30 percent in May 2020 versus May 2019; etc. Different calculations apply for start-ups and organizations that were in growth phase prior to the impacts of COVID-19.
On May 15, the Prime Minister announced a broadening of eligibility criteria for the CEWS to include, among others, Canadian amateur athletic associations and non-public schools. The Prime Minister also announced that the government will be consulting key business and labour representatives on other potential adjustments to the program, including in regards to the 30-percent revenue-decline threshold.
To calculate and apply for the wage subsidy, visit the following link:
More information can also be obtained by calling 1-833-966-2099.
The federal government will also provide a 100-percent refund to organizations eligible for the 75-percent wage subsidy for certain employer-paid contributions to EI, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan.
In addition, the government is providing a 10-percent wage subsidy to organizations that have not experienced a 30-percent drop in gross revenues. The temporary subsidy, which covers the period March 18 to June 19, is in the form of a reduction in payroll remittances. The subsidy is available to employers who are: individuals (excluding trusts); partnerships; non-profit organizations; registered charities; and Canadian-controlled private corporations (including cooperatives) eligible for the small business deduction. More information is available at the following link:
While many businesses and other organizations have to reduce their workforce owing to the economic impacts of COVID-19, others are facing labour shortages. Employers can search for candidates to fill openings through Service Canada’s job bank:
https://employer.jobbank.gc.ca/employer/
The following Quebec government website can help businesses and other organizations find the labour needed to provide essential goods and services:
https://www.quebec.ca/en/employment/job-offers/workers-urgently-covid-19/
The government has launched the Canada Emergency Business Account (CEBA) to support businesses, non-profits and charities that have payrolls between $20,000 and $1.5 million. Namely, banks will offer $40,000 loans, guaranteed by the government, to qualifying organizations. The loan will be interest free for one year, and if the loan is repaid by the end of 2022, $10,000 will be forgivable.
On May 19, the Prime Minister announced expanded eligibility criteria for access to the CEBA for applicants with payroll lower than $20,000. Namely, the loan is now available to businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.
In recognition of the fact that many businesses and non-profit organizations are ineligible for existing support measures, the government has launched the Regional Relief and Recovery Fund (RRRF). Like the Canada Business Emergency Account (CEBA), the RRRF offers loans with a non-repayable portion under certain conditions. The loan is non-repayable for non-profit organizations.
https://ced.canada.ca/eng/targeted-support/rrrf/index.html
https://ced.canada.ca/eng/targeted-support/rrrf/details.html
https://dec.canada.ca/eng/targeted-support/rrrf/faq.html
The federal government is also planning to provide up to $30 million to the PME MTL network to provide partially-interest-free (and under certain conditions partially-forgivable) loans of up to $40,000 to Montreal small and medium-sized businesses (SMEs) that are ineligible for other federal measures related to COVID-19 already in place. The Quebec government is jointly contributing an additional $20 million to the network for this same purpose.
More information on the role of PME MTL West-Island in disbursing this new funding for SMEs is available at the following link:
https://pmemtl.com/en/about/news/covid-19-our-services-are-maintained
The following website highlights Quebec government assistance for businesses experiencing financial difficulty at this time, including information on Quebec’s $50,000 Emergency Assistance Program for SMEs:
Because early-stage companies, like high-growth start-ups, often do not yet have the payroll needed to qualify for loans like the Canada Emergency Business Account, the government is providing additional funding to the National Research Council’s Industrial Research Assistant Program (IRAP) to help support these businesses:
https://nrc.canada.ca/en/research-development/research-collaboration/nrc-covid-19-programs
Many small businesses face the pressure of having to pay fixed costs like rent while experiencing diminished or completely-interrupted revenues. In recognition of this challenge, the government has introduced the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This rent relief program, which will be funded jointly with the provinces, will provide forgivable loans to commercial property owners who lower the rent of their tenants by 75 percent. These loans will cover 50 percent of tenants’ monthly rent and will be forgiven at the end of the program. Eligible small businesses will be defined as those with less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70-percent drop in pre-COVID-19 revenues. The CECRA should be operational by mid-May. However, funding will be provided for April and May retroactively as well as for June. Further details can be found at the following link:
On June 8, the Quebec government announced that it will fund 50 percent of the landlord’s 25 percent contribution under CECRA, reducing their losses under the program by half.
http://www.fil-information.gouv.qc.ca/Pages/Article.aspx?lang=en&idArticle=2806080014
The Business Development Bank of Canada (BDC) and Export Development Canada (EDC) have also been provided with additional liquidity to support businesses.
The SME Loan and Guarantee program is a co-lending partnership between the BDC and the EDC, on the one hand, and financial institutions, on the other. The program offers up to $6.25 million loans to businesses at the commercial interest rate with a 10-year repayment period. The BDC also offers working capital loans of up to $2 million to bridge cash flow gaps and support daily operations.
More information on BDC support programs is available at the following link:
https://www.bdc.ca/en/pages/special-support.aspx?ref=shorturl-coronavirus
The government has launched the Business Resilience Service, a free hotline operated by 125 business advisors from the Chartered Professional Accountants of Canada for a four-week period. This service provides Canadian business owners, including those who run charities and non-profits, with customized financial guidance — from navigating tax regulations and government supports to planning their path to recovery. Small businesses with pressing financial needs can call the following number 7 days a week: 1-866-989-1080.
Extensions for the Filing and the Payment of Income Taxes (Individuals and Businesses), Sales Taxes and Duties
The government is deferring dates for the filing and payment of income tax. Information on income-tax flexibility for individuals and businesses can be found at the following link:
https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-filing-payment-dates.html
The following link provides additional information namely in respect to the deferral of GST/HST and import duties/taxes remittances:
The Quebec government has also postponed its QST remittance deadline:
http://www.finances.gouv.qc.ca/documents/Bulletins/en/BULEN_2020-5-a-b.pdf
Support for Vulnerable Populations
The government has announced measures to support those who are particularly vulnerable during this difficult period.
Namely, the government is providing an additional $157.5 million to address the needs of Canadians experiencing homelessness. The government is also be providing up to $50 million to women’s shelters and sexual assault centres, including facilities in Indigenous communities, to help with their capacity to manage or prevent an outbreak.
In terms of other support for Indigenous Canadians, the government is providing $305 million through the Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities related to COVID-19. This funding includes $15 in support for Indigenous organizations that provide services to Indigenous peoples in urban centres and off reserve. On May 21, the Prime Minister announced another $75 for these organizations. On May 29, the Prime Minister announced additional funding for health, economic and social support for Indigenous Peoples and communities, including: $285.1 million to support ongoing public health responses to COVID-19 in Indigenous communities; $270 million to supplement the On-Reserve Income Assistance Program; $44.8 million, over five years, to build 12 new shelters to support Indigenous women and girls experiencing and fleeing violence (with $40.8 million to support operational costs for these new shelters over the first five years and $10.2 million annually ongoing); and $1 million a year ongoing to support engagement with Métis leaders and service providers on shelter provision and community-led violence prevention projects for Métis women, girls and LGBTQ and two-spirit people.
Because more Canadians are experiencing food insecurity at this time, the government is providing $100 million to Canada’s food banks and other national food rescue organizations. Funding is being distributed to local food banks through five key national and regional agencies: Food Banks Canada; Second Harvest; Community Food Centres Canada; Breakfast Club of Canada; and the Salvation Army.
The federal government is contributing $9 million through United Way Canada/Centraide for local organizations to support practical services to seniors. These services could include the delivery of groceries, medications, or other needed items, or personal outreach to assess individuals’ needs and connect them to community supports.
Dedicated Support for Community Organizations
The government has launched the $350 million Emergency Community Support Fund (ECSF) to help organizations adapt frontline services for vulnerable Canadians (seniors, people with disabilities, Veterans, newcomers, women, children and youth, LGBTQ2 people, Indigenous people, and racialized Canadians, such as Black Canadians). The ECSF will provide funding to national intermediaries with networks across the country, including the United Way/Centraide, the Canadian Red Cross, and Community Foundations of Canada.
https://www.canada.ca/en/services/benefits/emergency-community-support-fund.html
As of May 19, eligible community organizations can apply for funds through the following national partners or their local entities:
https://www.unitedway.ca/blog/ecsf/
https://www.communityfoundations.ca/
Canadian Armed Forces
In order to support the efforts of those working so hard to care for residents of long-term care facilities, over 1350 members of the Canadian Armed Forces (medical and support personnel) are on site in long-term care facilities in Quebec. In addition, approximately 80 Canadian Rangers are on the ground in Nunavik and roughly another 80n in Basse-Côte-Nord.
Support for Mental Health
The government has announced $7.5 million in funding to Kids Help Phone to provide young people with the mental health support they need during this difficult time.
The government has also launched the Wellness Together Canada portal to connect Canadians to peer support workers, social workers, psychologists and other professionals for confidential chat sessions or phone calls. The portal will make it easier to find credible information and help address mental health and substance use issues. The portal is available at the following link:
The Public Health Agency of Canada has released guidelines around caring for mental health during the COVID-19 pandemic:
Resources for Parents
The government recognizes that this is a difficult time for many families. Children, just like adults, have an important role to play in halting the spread of COVID-19. However, it can be difficult for some to understand why they have to stay home or cannot see loved ones or friends.
The Public Health Agency of Canada’s website contains information and links to useful resources for parents, including on activities for children and child mental health:
General Information and Updates
I am regularly posting up-to-date information on the federal response to COVID-19 on my Facebook page:
https://www.facebook.com/fscarpaleggia/
I invite you to follow my posts for news of the latest measures to help Canadians deal with the challenges of the COVID-19 pandemic.
More general information about the coronavirus can be found at:
https://www.canada.ca/coronavirus
Should you need specific assistance, please contact my office at 514-695-6661 or by e-mail at [email protected]
