Update on Covid-19 Emergency Programs

Canada Emergency Wage Subsidy

We have updated our May 13, 2020 newsletter on the Canada Emergency Wage Subsidy.  The update includes details of the three additional qualifying periods to August 29, 2020 and the additional organizations that may qualify for the program.  Please read our updated newsletter here:

Canada Emergency Business Account

On May 19, 2020, Prime Minster Trudeau announced an expansion of the eligibility criteria for the Canada Emergency Business Account (“CEBA”).

Under the existing CEBA program, businesses having 2019 payroll between $20,000 and $1.5 million may borrow up to $40,000, without interest, from a participating financial institution, and 25% of the loan is forgivable if the loan is repaid on or before December 31, 2022.

Though details will follow, the Prime Minister’s announcement indicated the program will be expanded to include applicants with 2019 payroll of less than $20,000 and that have eligible non-deferrable expenses of between $40,000 and $1.5 million.  The announcement indicates that eligible non-deferral expenses could include such costs as rent, property taxes, utilities, and insurance but did not expand on the definition of eligible non-deferral expenses or the timing of when those expenses need to be incurred to be eligible.

The announcement indicated the CEBA program will be available to sole proprietors, businesses that rely on contractors, and family-owned corporations that pay dividends to owners rather than salary.

The announcement also indicated that applicants must have both a business account at a participating financial institution and a Canada Revenue Agency Business Number, and must also have filed either a 2018 or 2019 tax return.

Canada Emergency Commercial Rent Assistance

Applications for the Canada Emergency Commercial Rent Assistance (“CECRA”) program may be made beginning at 8AM Eastern on May 25, 2020.

Details of the CECRA are available in our newsletter here:

The CECRA is administered by the Canada Mortgage and Housing Corporation (“CMHC”).  CMHC has developed detailed requirements and criteria that are available here: