Salons, clothing stores, sit down restaurants, gyms, public services, local attractions – these are just some of the many businesses that are not able to operate during these times, not to mention the number of businesses that have voluntarily shut down in an effort to protect their staff and customers.
And, with the State of Emergency being extended in Ontario until May 12, more and more business owners are asking themselves how they will get through these times while ensuring there business is able to get back to the normal day-to-day once social distancing measures are lifted (or at least loosened) and they are allowed to reopen.
To help these businesses, federal and provincial governments and even major Canadian banks are implementing programs to offer assistance.
Loan Guarantee – EDC (Export Development Canada) is offering additional funding to financial institutions, to be repaid in one year, so that they can provide new lines of credit to Small and Medium-sized Enterprises, also known as SMEs, in need of cashflow. Businesses can qualify for up to $6.25 million with 80% being guaranteed by the EDC.
Co-Lending Program – BDC (Business Development Bank of Canada) and financial institutions are working together to create co-lend loans for SMEs up to $6.25 million.
Business Credit Availability Program – The BDC and EDC are working together to administer loans and financing for SMEs. This includes small business loans for up to $100,000, working capital loans up to $2 Million and purchase order financing to help fulfil both domestic and international orders.
Canada Emergency Business Account – In partnership with the EDC, financial institutions are offering interest-free loans of up to $40,000 to help cover expenses for small businesses and not-for-profits with reduced revenue, who had payroll expenses of at least $50,000 in 2019. These loans will be eligible for loan forgiveness on up to 25%.
BDC Payments – Existing BDC clients with loans of $1 Million or less may be eligible for a 6-month payment postponement to businesses that were financially viable before the COVID-19 mandates and measures were put in place.
Property Tax Relief – some jurisdictions, including Toronto, are offering to waive penalties on late payments of property taxes and utility bills for up to 2 months starting March 16.
Electricity Bills – hydro companies will be charging small business time of use customers the lowest rate (10.1 ¢/kWh) 24 hours a day from March 24 to May 8, 2020.
In addition, many of the major banks and credit card providers are offering to work with clients on a case by case basis to ensure that they are able to support their businesses during this time. For information specific to your business, you will need to reach out to your financial institution.
For more information consult the specific government program page, review our COVID-19 resources page or give us a call to explore options available to your business.