President’s Message – March 24, 2020

NOTE: This event has already taken place.

Dear EDANL members.

Each day brings us into new unchartered waters, and it appears we are in for a longer haul than we could have ever imagined. As such, we will be postponing our professional conference in May to ensure the safety of our members and supporting collective efforts to flatten the curve. For those previously registered, we will be in touch.

The priority at the moment is health, safety of our families and neighbours, and supporting our business communities who will need us more than ever. To follow-up on links sent previously, our VP has pulled out the key points that you may find helpful as you field questions from your local businesses:

Supports For Your Business

• CRA Tax Deferral – the Canada Revenue Agency is deferring your tax payments until August 31, 2020 to help with your cash flow. No interest or penalties will accumulate on these amounts during this period. More info.
  

• Municipal Tax Deferral – some Municipalities are deferring the payment of commercial and business taxes. Early adopters of this policy include the Town of Paradise and the City of St. John’s. Consult your local municipality’s website for information that pertains most to you.
  

• Workplace NL – WorkplaceNL is deferring the collection of assessment payments from employers until June 30, 2020, and waiving interest charges or penalties. More info.
  

• Wage Subsidy – immediate relief for small businesses with a 10% wage subsidy for the next 90 days, up to a maximum of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. More info coming soon.
  

• Work Sharing – WS provides income support to employees eligible for EI benefits who work a temporarily reduced work week while their employer recovers. The maximum duration of Work-Sharing agreements had been increased from 38 weeks to 76 weeks. More info.
  

• Access to Credit – $10 billion has been made available to Canadian businesses in financing and credit insurance solutions. This includes:
  
  Business Development Bank of Canada – More info
  • Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses
  • Postponement of payments for up to 6 months, free of charge, for existing clients with total loan commitment of $1 million or less
  • Reduced rates on new eligible loans

  Export Development Canada – More info
  
  

  • Increased access to risk management, financing, and working capital solutions for international business and export activities

  Unless you are an existing client (in which case you can contact your account manager), businesses seeking these supports should first contact their financial institutions for an assessment of their situation. Financial institutions, who have made a commitment to work with SMEs on a case-by-case basis through this crisis, will refer to EDC and BDC their existing clients whose needs extend beyond what is available through the private sector alone.

• Deferral on Loan Payments – ACOA is applying a deferral of three months on all payments (and related interest charges) as of April 1, 2020, and will work with clients in the coming months to amend repayment schedules. TCII has also announced an automatic deferral of loan payments to all clients with business loans under the Innovation and Business Investment Corporation (IBIC) for a period of three months.

• Further Access to Supports – SMEs that need pressing assistance are encouraged to contact ACOA who can assist with accessing federal funding to help you stay in business. More info.

Support For Your Employees

• Emergency Care Benefit – The federal government will provide up to $900 bi-weekly, for up to 15 weeks, in income support to:
  
  • Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits.
  • Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not qualify for EI sickness benefits.
  • Parents with children who require care or supervision due to school or daycare closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not.

  Application for the benefit will be available in April 2020. More info coming soon.

• Longer-Term Income Support for Workers – For Canadians who lose their jobs or face reduced hours as a result of COVID’s impact, the Government is:
  
  • Introducing an Emergency Support Benefit delivered through the CRA to provide up to $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment. More info coming soon.
  • Work Sharing – WS provides income support to employees eligible for EI benefits who work a temporarily reduced work week while their employer recovers. The maximum duration of Work-Sharing agreements had been increased from 38 weeks to 76 weeks. More info.

• Other Supports – The Government of Canada is actioning a wide variety of supports to assist individuals in making it through this crisis with their finances intact. Click here for information.

Supports For the Self Employed

• Emergency Care Benefit – The federal government will provide up to $900 bi-weekly, for up to 15 weeks, providing income support to:
  
  • Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits.
  • Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not qualify for EI sickness benefits.
  • Parents with children who require care or supervision due to school or daycare closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not.

Other Resources

• Government looking for Suppliers to fight COVID-19: More Info
• Provincial updates: More Info
• Federal updates: More Info
• Business specific Federal updates: More Info
• CFIB Helpline: Given the urgency surrounding this issue, CFIB are also opening our Helpline to all business owners including non-CFIB members for advice on managing COVID-19 situations in the workplace. To talk to an expert, please call us at 1-888-234-2232. More Info
• CBDC is working on additional measures for clients. More Info
• National Banks have united to offer payment deferrals and flexible options for businesses and individuals affected by COVID-19. Contact your local bank to find out if they have options to help you at this time.
• Business continuity plan and templates for entrepreneurs – Having a business continuity plan helps ensure that your business has the resources and information needed to deal with an emergency. Exploring these templates (courtesy of BDC) can help you understand where your pain points may be in the weeks and months ahead. More Info
• Canadian Chamber of Commerce Pandemic Guide: More Info
• Getting your Organization ready for COVID-19: More Info

Please do not hesitate to reach out with questions you may have or information you find that you wish to share. We can support our local businesses during this difficult time if we work together to stay informed.

Stay well my friends.

Jennifer Penney, Ec.D (F)
President, EDANL