COVID-19
Update on Covid-19 and how it affects you.
Mandatory Isolation for travelers starting today. What you can do be ready for the coming months.
Set up a “My account” with CRA for direct deposit of payments.
- Talk to your landlord or bank to reduce or defer payments if you are waiting for EI payments or support payment.
- Have your utilities deferred for 6 months. You will have to pay the amount owing after 6 months.
Tax filing deadlines
Individuals
If you have children, you will also be eligible for a lump sum top-up of the Canada Child Benefit. To receive the payment, make sure you have filed the previous year’s tax return and ensure your direct deposit or address information is up to date with the Canada Revenue Agency. That payment will come in May.
The government will also be doubling the GST tax credit, which it estimates will be a boost of $400 for single individuals and close to $600 for couples, injecting $5.5 billion into the economy. Available in early May 2020
EI benefits for employees who have paid into EI If you are sick or self-isolating, you can apply for employment insurance sickness benefits online or by calling 1-833-381-2755. You will be eligible to get up to $2000/month for 4 months.
Self- employed and their spouse or common law partner
Self Employed, contract workers, not eligible for EI If you did not pay into employment insurance benefits last year, or if you didn’t work more than 600 hours, you can apply for the emergency care benefit. The government hopes to have applications open by early April and you will be able to apply with your Canada Revenue Agency account online. There will also be a toll-free number when applications open. This will provide you with 4 months of $2000/month. The emergency support benefit will be available to people who lose their job or see a reduction in hours as a result of the downturn but don’t qualify for employment insurance.
A new portal will be setup where you can apply for these benefits. Probably in early April. Payments should start 10 days after the application is received.
Businesses
Furthermore, all trusts that have an upcoming income tax balance due date or an income tax Instalment payment due date before September 1, 2020, will have their payment due date effectively extended to September 1, 2020.
Penalty and interest implications for upcoming trust tax obligations not covered by the
Relief described above will be considered by the CRA on a case-by-case basis.
A one-time payment of $1,146 is available for those who meet the criteria. The temporary funds are part of the government’s COVID-19 response “to keep Albertans safe during this unprecedented global health crisis,” the province said in a media release.
75 % Wage Subsidy. Application and technical details to come.
The Business Credit Availability Program (BCAP) will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, https://www.bdc.ca/en/pages/special-support.aspx
Apply for a loan to get the business through this tough times through your bank. Summary through the EDC Business Credit Availability Program (BCAP) Guarantee, EDC will provide a guarantee (a form of a backstop) for your loan with your financial institution, giving your financial institution the assurance to give you access to credit.
The terms below (and additional terms) can be explained by your financial institution :
- You deal only with your financial institution (not EDC), except for the online intake application form described below.
- Fixed guarantee fee of 1.8% on the loan amount.
- Six-month fee payment deferral.
- The terms of this guarantee allow you to finance cash expenses such as payroll. Who is eligible Direct, indirect, or future exporter, requesting additional liquidity as a result of the COVID-19 pandemic.
- To qualify for a BCAP guarantee, you must:
- Apply for an operating line of credit or one-year term loan equal to or less than $5 million CAD with your financial institution.
- Qualify through your financial institution’s normal due diligence and underwriting process, including having a risk rating no lower than C+ (Standard, Equivalent & Poor’s) at the signature of the loan.
How to apply
Existing EDC clients: Contact your EDC account manager to discuss additional working capital financing needs. New clients:
- Contact your financial institution to discuss your options. Going through your financial institution can save you time on paperwork and help you assess your options better and faster.
- Complete an online application form on EDC website (link will be provided by your financial institution) prior to credit submission, to provide EDC with high-level company information.
- Once you submit your online intake eligibility form, you will receive an automated email as a proof of application. Your financial institution will then conduct its underwriting and due diligence processes, which include verifying the transaction meets the BCAP Guarantee Program parameters.
- If you qualify, your financial institution will provide you access to the credit amount for which you have been approved.