Anti-Crisis (COVID-19) Funding

Let’s face it. As of March 2020, the Canadian economy is in serious trouble. Our team is closely watching the announcements of the response measures at all levels of government to help your businesses survive the tough time caused by COVID-19. This page will be updated as more information becomes available. All crisis response measures to-date can be found here (Ministry of Finance), and the websites of the Provincial and Territorial Ministries of Finance.

We Help Your Business Apply for Anti-Crisis (COVID-19) Incentives

Our focus is to help you with the business funding programs that require application writing. We concentrate on the programs that help you resolve the following issues.

Canada Emergency Wage Subsidy (CEWS)

  • Eligibility: Individuals, partnerships, private corporations and Canadian non-profits and charities who are experiencing a decline in revenues due to the COVID crisis. Revenues will be compared monthly starting March 2020, to the revenues for the same time in 2019, or to the average of January and February 2020 revenue.
  • Amount: up to 75% of remuneration to $847 per week per employee.
  • Timing: Payments will be made within 6 weeks.
  • Deadline: The wage subsidy is retroactive and the application intake is continuous. The program ends in June 2021.
  • Official Press Release
  • How to Apply? Applicants need to re-apply monthly. Application forms will be available on CRA website, My Business Account section.

Canada Emergency Rent Subsidy (CERS) + Lockdown Support

  • Eligibility: Individuals, partnerships, private corporations and Canadian non-profits and charities who are experiencing a decline in revenues due to the COVID crisis, and were forced to shut down by the provincial, regional or municipal governments. Revenues will be compared monthly starting March 2020, to the revenues for the same time in 2019, or to the average of January and February 2020 revenue.
  • Amount: up to 65% of eligible rent, property tax, property insurance and mortgage interest expenses. Plus up to 25% of the above expenses if the business was forced to shut down. The maximum amount of eligible expenses is $75,000 per month.
  • Timing: Payments will be made within 6 weeks.
  • Deadline: The rent subsidy is retroactive and the application intake is continuous. However, all applications must be submitted within 180 days following the end of each eligible period. The program ends in June 2021.
  • Official Press Release
  • How to Apply? Applicants need to re-apply monthly. Application forms will be available on CRA website, My Business Account section.

Work Share Agreement

The program allows you to reduce employee working hours and remuneration by up to 50%, while the Employment Insurance pays a portion of the balance. The work share may be in place for up to 76 weeks.

Business Credit Availability Program (BCAP) Loan

It is a credit facility that will be provided by the financial institutions and crown corporations to the creditworthy Canadian companies. It is an interest-based loan focused on maintaining your cash flow. The maximum amount of loan is $6.25 million per applicant (of which up to $5 million is provided by the crown corporation) with flexible terms and payment postponements for up to 6 months.

Business Credit Availability Program (BCAP) Guarantee

It is a guarantee on your operating line of credit or term loan of up to $6.25 million. The program is offered by the traditional financial institution and credit unions in conjunction with one of the crown corporations.

Canada Emergency Business Account

It will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. The loan will be provided by the traditional financial institutions in cooperation with the crown corporations. To qualify, these organizations will need to demonstrate they paid between $20,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before Dec. 31, 2022, will result in loan forgiveness of 25% (up to $10,000). If you don’t qualify for Canada Emergency Business Account, you may qualify for Regional Relief and Recovery Fund provided by regional development corporations on similar terms.

Other Funding and Recovery Opportunities

Your business may be eligible for Scientific Research & Experimental Development (SR&ED) and other Tax Credits, and Customs Duty Drawback if you paid the duties on the materials and parts. All these programs remain open throughout the recession. Please note, that you can obtain financing against your submitted SR&ED claim.

Most of the government grant and loan programs remain open for applications and we can help you with them.

Regional Opportunities Investment Tax Credit in Ontario

  • Eligibility: Canadian-controlled private corporation that makes qualifying investments that become available for use on or after March 25, 2020, in specified regions of Ontario. The tax credit would be available for expenditures in excess of $50,000 and up to a limit of $500,000. The tax credit would be available only in Northern Ontario and large parts of Southwestern and Eastern Ontario with the exception of Greater Toronto and Greater Ottawa areas.
  • Eligible Investments (Expenses): Constructing, renovating or acquiring eligible commercial, industrial and certain farm buildings.
  • Amount: 10% of eligible expenses reduce corporate income tax.
  • Timing: To be confirmed.
  • How to Apply? To be confirmed. Apply for tax credits at the end of your fiscal year.

Avoid Bankruptcy and Protect Hard-Earned Assets

Don’t rush to shut the shop down and auction all assets if none of the above measures helped. The Federal Government regulates insolvency matters and there are programs to reduce the debt without bankruptcy. We teamed up with a group of lawyers and debt councillors. Contact us to get introduced if you can no longer keep up with loan or lease, supplier, rent, government and other payments.

Make Products or Develop Technologies to Fight COVID-19

Respond to the government calls for proposal to make products, deliver services and develop technologies to help fight COVID-19.

  • Government of Canada call for proposals
  • Ontario Government call for proposals
  • Advanced Manufacturing Supercluster call for proposals. The Supercluster provides up to 100% of the eligible cost to
    • support companies looking to develop and manufacture new therapeutics, equipment and products essential for COVID-19 response;
    • support manufacturers who currently produce essential equipment and products increase product output; and,
    • support manufacturers transitioning from the production of existing products to products essential for COVID-19 response.

How To Apply?

  1. Apply yourself directly on the government websites
  2. Fill out the form to request our free consultation on what solution is right for you.