Canadian Government Announces Greater Flexibility And Extension Of COVID Relief Programs
To help small business owners and entrepreneurs during the coronavirus pandemic, on August 31 Deputy Prime Minister and Minister of Finance Chrystia Freeland announced that the Canada Emergency Business Account (CEBA) will be extended through to the end of October. The government continues to work closely with more than 200 financial institutions to make CEBA available to the small business owners and entrepreneurs operating out of a personal bank account as opposed to a business bank account.
Freeland also announced that the Business Credit Availability Program (BCAP) is extended to June 2021. Through BCAP, the government is supporting the flow of additional credit that businesses need to maintain operations and keep employees on the payroll. The government said the Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will continue to work with lenders to support access to capital for Canadian businesses of all sizes in all sectors and regions.
Freeland said, “By making CEBA loans available for an additional two months, we will help more small businesses get into a better position to weather the storm and get back on their feet. Extending BCAP will improve access to the capital needed by businesses to pay workers’ salaries and cover expenses – and it will also serve as a bridge until we return to more normal borrowing conditions.” Freeland also noted, “The federal government is actively considering what further measures are needed as we continue with a safe reopening of the economy.”
CEBA and BCAP are both part of the Government of Canada’s COVID-19 Economic Response Plan.