I hope this finds you as well as can be expected as we all continue to battle against COVID-19. There have been a number of developments with the federal support programs. Below is a summary of programs development as of May 13, 2020.
CEWS (Canada Emergency 75% Wage Subsidy) Program – As of this point in time, the Federal Government has extended this program for one more period. The program was initially to end on June 6 – there is now an additional period (June 7 to July 4). The CRA was able to confirm the extension but was unable to provide details if the program is changing. They are expecting to be able to release details next week.
Applications for Claim Period 2 (April 12 to May 9) can now be submitted. For those we worked with on the first period submissions, we will contacting to you to support you through the process for Claim Period 2. For anyone we have not assisted as yet, we would be happy to guide you through the process.
A number of our customers who have direct deposit have reported they have received their funds. Some much anticipated relief for cash flow management.
CERB (Canada Emergency Response Benefit) – Period 3 (May 10 to June 6) of the program is open to accept applications. If you are eligible for this program, you an apply online or by phone now. Applying by phone has been found to be the most efficient process to date. In short, if you are working less due to COVID-19 and are 15yrs old or older, made $5,000 in 2019, and will earn $1,000 or less income in Period 3 you are likely eligible to apply. If you are unsure if you are eligible or have any questions we would be happy to assist.
CESB (Canada Emergency Student Benefit) – The Federal Government announced today, eligible post-secondary students and recent graduates will be able to apply to this program starting Friday May 15. Eligible applicants will receive $1,250/mth or $2,000/mth (if they have a disability or are caring for someone else). The program will run for the months of May, June, July and August. The government says those collecting the benefit will be required to confirm they are looking for work and will be connected with a government job bank with employers looking for students. We will update when more details on how to actually apply are available.
Regional Relief and Recovery Fund – The Federal government has announced nearly $1 billion is now available to support rural or remote businesses that did not qualify for other COVID-19 related programs. Businesses are to contact one of six regional development agencies: Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions, Federal Economic Development Agency for Southern Ontario, Federal Economic Development Initiative for Northern Ontario and Western Economic Diversification Canada.
As indicated, a number our clients have started to see the money from the programs they qualify for be deposited into their bank accounts. We are working with many of our clients to execute good basic crisis cash management. Funds to be managed include any deferred payments, expense reduction arrangements, funds not submitted through the 10% Wage Subsidy, and refunds from CEWS. One simple action is to transfer all these types of funds into separate bank account not used for any other purpose. From there it is extremely easy to track money into and out of this account and at a glance to know how much of the funds you still have available. If you are interested more details on this or other cash management practices we would are here to support you.
Greg Libbrecht and the team at Platinum Business Services