Support for Businesses During COVID-19 Pandemic

Thank you to the Economic Development Association of Newfoundland and Labrador (EDANL) for compiling this information.

Due to the necessary measures in place to help slow the spread of COVID-19, many businesses are facing significant challenges. The Town of Torbay, along with the provincial and federal government have recognized the hardship this outbreak has placed on businesses and are offering supports to help see them through this period.

If you are a business owner in Town of Torbay and have any questions related to these measures and exemptions, please contact jschwarz@torbay.ca or sparsons@torbay.ca.

Payment Deferrals

  • CRA Tax Deferral – the Canada Revenue Agency is deferring your tax payments until August 31, 2020 to help with your cash flow. No interest or penalties will accumulate on these amounts during this period. Visit the CRA Website for more details.
  • Municipal Tax Deferral – the Town of Torbay has deferred all tax payments, including business and commercials taxes, until June 30, 2020 with no interest charged during this period. For more information visit torbay.ca/taxdeferral.
  • Workplace NL Payment Deferral – WorkplaceNL is deferring the collection of assessment payments from employers until June 30, 2020, and waiving interest charges or penalties. For more information visit the Workplace NL website.
  • Deferral on Loan Payments – ACOA is applying a deferral of three months on all payments (and related interest charges) as of April 1, 2020, and will work with clients in the coming months to amend repayment schedules. Visit the ACOA website for more information. TCII has also announced an automatic deferral of loan payments to all clients with business loans under the Innovation and Business Investment Corporation (IBIC) for a period of three months. For more information, visit the TCII website.

Business Supports

  • Wage Subsidy – immediate relief for small businesses with a 10% wage subsidy for the next 90 days, up to a maximum of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Visit the Department of Finance website for more information.
  • Work Sharing – WS provides income support to employees eligible for EI benefits who work a temporarily reduced work week while their employer recovers. The maximum duration of Work-Sharing agreements had been increased from 38 weeks to 76 weeks. For more information visit the Government of Canada Work Sharing website.
  • Access to Credit – $10 billion has been made available to Canadian businesses in financing and credit insurance solutions. This includes:
    • Business Development Bank of Canada
      • Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses
      • Postponement of payments for up to 6 months, free of charge, for existing clients with total loan commitment of $1 million or less
      • Reduced rates on new eligible loans
    • Export Development Canada
      • Increased access to risk management, financing, and working capital solutions for international business and export activities

Unless you are an existing client (in which case you can contact your account manager), businesses seeking these supports should first contact their financial institutions for an assessment of their situation. Financial institutions, who have made a commitment to work with SMEs on a case-by-case basis through this crisis, will refer to EDC and BDC their existing clients whose needs extend beyond what is available through the private sector alone.

  • Further Access to Supports – SMEs that need pressing assistance are encouraged to contact ACOA who can assist with accessing federal funding to help you stay in business. Visit ACOA online for more details.

Support For Employees

  • Emergency Care Benefit – The federal government will provide up to $900 bi-weekly, for up to 15 weeks, in income support to:
    • Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits.
    • Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not qualify for EI sickness benefits.
    • Parents with children who require care or supervision due to school or daycare closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not.

Application for the benefit will be available in April 2020. For more information visit the Department of Finance Website.

  • Longer-Term Income Support for Workers – For Canadians who lose their jobs or face reduced hours as a result of COVID’s impact, the Government is:
    • Introducing an Emergency Support Benefit delivered through the CRA to provide up to $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment. More info coming soon.
    • Work Sharing – WS provides income support to employees eligible for EI benefits who work a temporarily reduced work week while their employer recovers. The maximum duration of Work-Sharing agreements had been increased from 38 weeks to 76 weeks. More info.
    • Other Supports – The Government of Canada is actioning a wide variety of supports to assist individuals in making it through this crisis with their finances intact. Click here for information.

For more information visit the Department of Finance Website.

Supports For the Self Employed

  • Emergency Care Benefit – The federal government will provide up to $900 bi-weekly, for up to 15 weeks, providing income support to:
    • Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits.
    • Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not qualify for EI sickness benefits.
    • Parents with children who require care or supervision due to school or daycare closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not.

For more information visit the Department of Finance Website.

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