Federal Update: Announced, Friday, March 27, 2020
Wage subsidy now at 75% (up from 10%) - retroactive to Sunday March 15
Government boosts wage subsidy to 75% for small, medium businesses to avoid layoffs during COVID-19 crisis. The prime minister said the wage subsidies will be backdated to March 15, 2020.
Canada Emergency Business Account: $40K loans from banks - interest free for first year
At a time when many businesses are losing money, the government will also guarantee loans of up to $40,000 for small businesses which will be interest-free for the first year. Under certain conditions, up to $10,000 of the loans could be non-repayable.
To qualify, organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Bank of Canada cuts rate to 0.25%
Bank of Canada slashes interest rate by 50 basis points to overnight target rate of .25%. 'This unscheduled rate decision....is intended to provide support to the Canadian financial system and the economy during the COVID-19 pandemic.'
Additional measures from the CRA
The Canada Revenue Agency (CRA) has announced additional measures on March 26, 2020 in regard to the extension of tax reporting deadlines. These measures are in addition to the income tax filing and payment deadline extensions previously announced as part of the fiscal measures taken in response to COVID-19.
BDC financing support available for entrepreneurs impacted by the coronavirus COVID-19
COVID-19 Relief Program - Working Capital (BDC program)
The working capital program is a 36-month, backend-loaded loan with principal deferment for the first 12 months. The amount of financing provided is based on a detailed projection or forecast identifying the ‘carrying cost’ or ‘burn rate’ of the operation for the upcoming 12-24 months.
BDC local contact: Randy Myers
Directeur principal | Senior Account Manager
T 519-419-0170 C 519-350-4209
Community Futures Chatham-Kent
- Immediate Lending Option
Community Futures Chatham-Kent is able to provide your local small business with a loan of $5,000. This option is available for new and existing clients. Some limitations do apply.
- Long-Term Lending Option
Community Futures Chatham-Kent is able to provide your local small business financial assistance ranging between $5,000 and $250,000 based on your need.
Visit their website to contact them for details:
Community Futures Chatham-Kent is offering to its clients:
A three (3) month deferral of payments based on the client’s payment cycle ~ such payments will be added to the end of their current amortization schedule. This deferral will require written confirmation from the client along with confirmation in writing from all guarantors where required.
Farm Credit Canada
The Government of Canada has made available $5 billion through Farm Credit Canada for the agriculture sector to help bridge business needs. The near term credit available to farmers and the agri-food sector has been increased through Farm Credit Canada.
Location: 405 Riverview Dr, Chatham-Kent, ON N7M 0N3
Contact your bank
Canada’s banks have made a commitment to support businesses and individuals through these difficult times in a responsible, fair, and compassionate way. To help provide some stability for businesses through this time of uncertainty,
the Office of the Superintendent of Financial Institutions (OSFI) is lowering the Domestic Stability Buffer requirement, releasing more than $300 billion of additional lending capacity for Canadian financial institutions.
Ministry of Finance - Canada
Ministry of Finance - Ontario