Canada Extends Small Business COVID-19 Relief Program
On June 30, Canadian Finance Minister Bill Morneau announced that the Canada Emergency Commercial Rent Assistance (CECRA) will be extended by one month to cover eligible small business rents for July. Additionally, to simplify the application process for all applicants, the government is removing the requirement to claw-back insurance proceeds and provincial rent supports from the CECRA forgivable loan amount for both existing and new applicants. Existing applicants who are affected will be notified and will have any previously clawed-back amounts restored to their forgivable loan.
On June 25, Minister Morneau had announced an expanded CEBA loan program will be made available through Canada’s large banks. As of June 26, 2020, businesses eligible for CEBA now include owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll. Applicants will have to demonstrate having eligible non-deferrable expenses between C$40,000-$1.5 million in 2020.
The expanded program will be available by more than 230 financial institutions across the country, starting with the largest banks.