We are continuing to research and understand the evolving federal and provincial government support programs in place for people and businesses.
Below is a summary of key new developments as of Monday April 27. It is not intended to cover all the details of each program but to make you aware of what is out there for options.
Through our daily work with our customers and business colleagues, we have had the pleasure of seeing how a number of owners and their teams have been very creative re-inventing how to do business in the fight against COVID-19. This entrepreneurial creativity has enabled businesses to be able to continue to support their staff and customers now and in the long term.
We are here to help guide you through the financial implications of this process and select appropriate programs and apply for them making your business better able to weather the storm. Contact us any time we are happy to help.
Canada Emergency Wage Subsidy (CEWS) – Businesses are able to apply for this refund subsidy effective today. The program has various netting procedures and requires the calculation of a baseline remuneration for comparative purposes to input into the government’s online calculator for when the government reviews applications. The calculation of eligible remuneration goes beyond straight wages and includes other regular remuneration items.
Canada Emergency Commercial Rent Assistance (CECRA) – small businesses must have at least a 70% reduction in revenue or have been forced to close by the pandemic. The landlord can be approved for a forgivable loan if they agree not to evict the tenants and cut the tenant rent by 75%. The landlord will receive a loan for 50% of the tenant rent paid directly to their mortgage lender. This is funded by the federal and provincial governments. The tenant is expected to pay 25% of their rent. The program can be used for rents up to $50,000/month for businesses, non-profit and charitable organizations for the months of April, May and June. The program is expected to be operational by Mid-May.
Canada Emergency Student Benefit (CESB) – the government proposed providing support to students and new graduates who are not eligible for the CERB or EI or unable to work due to COVID-19. The benefit would provide $1,250/month for eligible students or $1,750 for students with dependents or disabilities through the months of May to August.
Province of Manitoba Student Subsidy – Up to $120 million will be available to employers to hire up to 5 students between May 1 and Sept 4 and be funded $7.00/hour to a maximum of $5,000 per student. The program is available for student ages 15 to 29 years old.
Province of Manitoba – has stated it will be announcing this week the details of its plans to gradually and systematically open the economy.
Greg Libbrecht and the entire team at Platinum Business Services