1.
COVID-19:
Government Support
for Startups
April 17, 2020

2.
Outline
KEEP OUR EMPLOYEES
Wage Subsidy and
Support Programs
ACCESS TO LOANS
Loans and Financing
Programs
DEFER TAX PAYMENTS
Tax Measures by
Levels of
Government

3.
KEEP OUR
EMPLOYEES
01

4.
How many programs are offered to us?
10% Wage Subsidy
60% Wage Support
75% Wage Subsidy
Cease Business Temporarily

5.
10% Wage Subsidy
▪ For small businesses
▪ From March 18 to June 19, 2020
▪ Up to $1,375 for each employee / Capped at $25,000
▪ Without application process

6.
60% Wage Support
▪ It is known as Work-Sharing Program.
▪ It is a three-party agreement.
▪ It allows 10% - 60% work reduction.
▪ It can be extended to 76 weeks maximum.
▪ Eligible Employer: Operate business in Canada for 1 year
▪ Ineligible Employees: Self-employed; Obtain 40% of the voting shares
▪ Application Info:
Ontario Application Email: ESDC.ON.WS-TP.ON.EDSC@servicecanada.gc.ca
Other Enquiries: EDSC.DGOP.TP.REP-RES.WS.POB.ESDC@servicecanada.gc.ca

7.
75% Wage Subsidy
▪ It is know as Canada Emergency Wage Subsidy.
▪ It is a 12-week program – Retroactive to March 15, 2020.
▪ It covers up to a maximum benefit of $847 per week.
▪ It requires a gross-revenue-reduction test:
❑ 15% drop in March
❑ 30% drop in April
❑ 30% drop in May
▪ Application Info: CRA Business Account but Waiting for More Details

8.
Cease Business Temporarily
▪ Canada Emergency Response Benefit:
❑ It is for employees and self-employed
❑ It supports $500 per week for up to 16 weeks
❑ Application Info: CRA online or Toll-free line
▪ Can I lay-off my employees?
❑ Review your employment contracts

9.
10% Wage
Subsidy
60% Wage
Support
75% Wage
Subsidy
Cease Business
Temporarily
March 18 – June 19, 2020
6 weeks – 76 weeks
March 15 – June 6, 2020
Or extend to September 30, 2020
March 15 – June 20, 2020

10.
Canada Summer Jobs
▪ Job Hours: Full-time or Part-time
▪ Job Duration: May 11th,2020 - Feb 28th, 2021
▪ Subsidy: Up to 100% of minimum hourly wage
▪ Eligible Youth Employees:
◦ are between 15 and 30 years of age
◦ cannot be international students
◦ cannot displace or replace existing employees/volunteers /laid-off employees
▪ Contact:
◦ Local Members of Parliament
◦ Website: Employment and Social Development Canada

11.
ACCESS TO
LOANS
02

12.
Access to Loans
Canada Emergency
Business Account
Business Credit
Availability Program

13.
Canada Emergency Business Account
▪ It is for small businesses.
▪ It offers loans of up to $40,000.
▪ It gives a 0% interest until December 31, 2022.
▪ It allows 25% loan forgiveness, if:
○ You fully repay the rest by December 31, 2022
▪ It requires a payroll test that:
○ Total employment income paid in 2019 was between $20,000 and $1,500,000
▪ Application Info: contact primary financial institutions

14.
Business Credit Availability Program
▪ Loan up to $6.25 M from BDC (Business Development Banks of Canada)
▪ Loan up to $6.25 M from EDC (Export Development Canada)
▪ Application Info: contact financial institutions

15.
Canada Emergency Commercial Rent Loan
NEW
▪It is for small businesses.
▪It covers rent for April, May and June.
▪Waiting for more details.

16.
DEFER TAX
PAYMENTS
03

17.
Defer Tax Payments
▪ GST/HST payments and remittances
June 30, 2020
▪ Income Tax payments
September 1, 2020
▪ Ontario administered tax filling or remittance
August 31, 2020
▪ Municipal property tax payments

18.
TAKE-AWAY

19.
▪ Contact CRA for Wage subsidy programs
▪ Contact Service Canada for Work-sharing program
▪ Contact your Financial Institutions for Loans
▪ Speak with your accountant/ tax professional/
lawyer/ landlord/ CAIF…
▪ Join Ontario Together Program:
https://www.ontario.ca/page/how-your-organization-can
-help-fight-coronavirus
Work Together
https://www.mgc.es/ca/

20.
Thanks!
Do you have any questions?
Email:
info@angelfoundation.ca
LinkedIn ID:
https://www.linkedin.com/in/caif/
Website:
https://angelfoundation.ca/
Disclaimer: The materials provided in this presentation and any comments or information provided by
the presenter are for educational purposes only and nothing conveyed or provided should be
considered legal, accounting or tax advice.