Appearance before the Standing Committee on Finance (FINA) by the Minister of Small Business, Export Promotion and International Trade – May 21, 2020

21 May 2020

Reopening the economy

Question:

How will the Government of Canada ensure that the economy returns safely and efficiently?

Key messages:

  • Canadians recognize the seriousness of this pandemic and have demonstrated remarkable resilience during this difficult time.
  • Canadian industries have stepped up to keep essential supplies and services moving, and to help fill gaps in critical supplies of protective equipment and medical supplies.
  • The Government of Canada is also making available supports and investments for Canadians, business, and organizations to ensure that the economy remains resilient.
  • As the Prime Minister has indicated, the Government will work closely with provinces and territories to ensure that a coordinated approach is taken to carefully reopen the economy at the right time. This approach will involve many industrial partners — while also considering public health directives.
  • At this time, Canadians should continue abiding by all public health guidelines.

Background:

As a result of successful mitigation measures, several EU countries including Germany and Denmark are in the midst of relaxing containment measures and opening businesses and schools gradually. Italy and Spain, both hit hard by the COVID-19 virus, are experiencing downward trends in new infections and deaths and are also planning the gradual reopening of their economies. Austria, the Czech Republic and Poland are also relaxing lockdown and economic restrictions.

France is targeting May 11, 2020, for the date to relax requirements, including schools; however, it is still subject to the state of readiness of technology measures.

On April 14, 2020, the U.S. released federal guidelines for states to reopen the economy, following three stages (each lasting 14 days) based on downward trends in key monitoring areas that would allow for scaled and gradual social activities and businesses including services.

Anxiety over the economic impacts of the COVID-19 remains high globally — China's economy shrank 6.8% in the first three months of this year — the first time in more than 3 decades for China, prompting calls by the governing party to pursue aggressive economic measures.

In Canada, a cautious approach to reopening is being contemplated, based on the advice of Health Canada and the Public Health Agency of Canada, ensuring adequate containment,
control, risk mitigation and prevention. The health and safety of Canadians is at the core of the Canadian strategy and the Prime Minister has signalled that it will be done in close collaboration with provinces and territories.

Premiers have signalled to the Prime Minister that they do not feel it necessary for the invocation of federal powers through the Emergency Measures Act as they are confident they have the resources to successfully manage the pandemic.

Preparation and approvals:
SCMS contact: Riyadh Nazerally, Communications Advisor, 343-548-9038
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Mark Schaan, A/SADM, SIPS, 613-793-6564

Small and Medium Enterprise (SME) support during COVID-19

Question:

What is the Government of Canada doing to support small and medium-sized businesses during the COVID-19 pandemic?

Key messages:

  • The Government of Canada understands the sacrifices small businesses have made in temporarily closing their doors to help keep us all safe from COVID-19. We are focused on helping Canadians and businesses get through this tough economic time.
  • We will continue to protect the health and safety of Canadians, while supporting families and businesses and keeping our economy strong and ready to bounce back once we are through this.
  • Over the past few weeks, we spoken with thousands of businesses across the country.
  • We are now delivering the largest single support package in recent history in response to what we've heard, and to the realities of this crisis.
  • Our emergency support measures help businesses keep their employees, have the cash flow to keep operating, and keep paying their bills.
  • We will do whatever it takes to help entrepreneurs and small businesses during this crisis.

Supplementary messages:

On some businesses being ineligible for the Canada Emergency Business Account (CEBA):

  • We understand that some businesses are concerned that programs such as the Canada Emergency Business Account don't apply to them, or they are ineligible.
  • We are constantly meeting with businesses and stakeholders and listening to what they tell us, to ensure the programs and services we offer during this difficult time do what they are designed to do: meet the needs of Canadian businesses.
  • To make it accessible to more businesses, the qualifying payroll threshold was expanded to between $20,000 and $1.5 million, from $50,000 to $1 million, based on feedback received.
  • Canadian businesses and communities that are unable to access existing federal measures can now apply for the Regional Relief and Recovery Fund (RRRF) through the regional development agencies (RDAs) which will provide $962 million of additional support.
  • Nothing is off the table, and we will continue to refine and make changes to these programs as needed.

On Canada Emergency Commercial Rent Assistance (CECRA):

  • The Government of Canada, in partnership with the provincial and territorial governments, is introducing the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses.
  • It offers forgivable loans to eligible commercial property owners so that they can reduce the rent owed by their impacted small business tenants by at least 75% for the months of April, May and June, 2020.

On Business Credit Availability Program (BCAP):

  • BCAP has now been expanded to support mid-sized companies with larger financing needs. It will provide loans of up to $60 million and guarantees of up to $80 million.
  • Through the BCAP, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will work with private sector lenders to support access to capital for Canadian businesses in all sectors and regions.

Preparation and approvals:
SCMS contact: Riyadh Nazerally, Communications Advisor, SCMS, 343-548-9038
SCMS approval: Vicky Eatrides, ADM, SCMS, 343-291-1652
Sector approval: Frances McRae, ADM, SBMS, 343-291-1800

Keeping business costs low during COVID-19

Question:

How is the Government of Canada keeping costs low for small and medium-sized businesses?

Key messages:

  • The Government of Canada has introduced a number of relief measures to help businesses keep operating costs low during the COVID-19 pandemic.
  • To help businesses cover expenses, the Canada Emergency Business Account offers businesses access, through their financial institution, to a $40,000 interest-free loan. If that loan is repaid by the end of 2022, up to 25% will be forgiven.
  • Many businesses want to keep their staff on payroll to be ready to bounce back after the pandemic. The Canada Emergency Wage Subsidy will help support up to 75% of wages for businesses with a payroll between $20,000 and $1.5 million.
  • For smaller businesses, the government's previously announced 10% wage subsidy can help by providing up to $1,375 per employee, and up to $25,000 total per employer.
  • The Government is also deferring GST and HST payments, as well as duty payment for exporting businesses, until June 30, 2020. Income tax payments may be deferred until August 31, 2020.

Background:

Canada Emergency Business Account:

The new Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. To qualify, these organizations will need to demonstrate that they paid between $20,000 and $1.5 million in total payroll in 2019. Business owners can apply for support from the CEBA through their banks and credit unions.

Canada Emergency Wage Subsidy:

The Canada Emergency Wage Subsidy (CEWS) will provide eligible employers a temporary wage subsidy for a 12-week period (from March 15, 2020 to June 6, 2020). The subsidy will be available to businesses of all sizes, as well as non-profit organizations and charities, whose revenues have decreased by at least 30% due to COVID 19 (for the month of March, the government has made the CEWS more accessible by reducing the 30% benchmark to 15%). It will cover up to 75% of wages on the first $58,700 that an employee earns, up to $847 per week.

10% Temporary Wage Subsidy for Employers:

Those organizations that do not qualify for the CEWS may continue to qualify for the 10% Temporary Wage Subsidy for Employers, a three-month measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA).

The subsidy is equal to 10% of the remuneration paid from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee, and up to $25,000 total per employer.

Tax Deferrals:

The CRA will allow all businesses to defer, until August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.

The CRA will also allow businesses, including self-employed individuals, to defer until June 30, 2020 payments of the Goods and Services Tax / Harmonized Sales Tax (GST/HST), as well as customs duties owing on their imports.

Preparation and approvals:
SCMS contact: Riyadh Nazerally, Communications Advisor, 343-548-9038
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Frances McRae, ADM, SBMS, 343-291-1800

Helping Small and Medium Enterprises (SMEs) secure funding during COVID-19

Question:

How is the Government of Canada helping small and medium-sized businesses secure funding to continue to operate?

Key messages:

  • The Government of Canada is providing support to small businesses by allowing them to quickly access funds through financial institutions.
  • The government established the Business Credit Availability Program, or BCAP, to provide critical support to help businesses cover costs and prepare for when the pandemic is over.
  • The Canada Emergency Business Account (CEBA) is providing small businesses and non-profits with payrolls between $20,000 and $1.5 million with an interest-free loan of up to $40,000. If the loan is repaid by the end of 2022, up to $10,000, will be forgiven.
  • The government also announced more than $1 billion to help small businesses, including innovative firms and young entrepreneurs. These are available through the regional development agencies, the National Research Council of Canada and Futurpreneur Canada..
  • And the Canada Emergency Commercial Rent Assistance program is designed to help tenants and landlords get through this this difficult time.
  • These measures will help businesses of all sizes and across all sectors that are struggling with cash flow to bridge to better times.

Background:

Business Credit Availability Program:

The Business Credit Availability Program (BCAP) will provide additional support for businesses across all sectors and regions. Through this program, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC), alongside a wide range of financial institutions, will provide lending and other types of financing to support businesses facing challenges due to the COVID-19 crisis.

The program includes:

  • Canada Emergency Business Account:
    • The new Canada Emergency Business Account provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
    • To make it accessible to more businesses, the qualifying payroll threshold was expanded to between $20,000 and $1.5 million, from $50,000 to $1 million, based on feedback received.
    • Organizations now need to demonstrate that they paid between $20,000 and $1.5 million in total payroll in 2019.
  • Loan Guarantee for SMEs:
    • EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million (80% guaranteed by EDC) to SMEs.
    • These loans have a 1-year term with automatic renewal.
  • Co-Lending Program for SMEs:
    • BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.
    • Eligible businesses may obtain incremental credit amounts of up to $12.5 million (80% guaranteed by BDC) through the program. This is double the previous amount of $6.25 million.

The EDC New Loan Guarantee and BDC co-lending program for SMEs are additive, meaning a firm could access up to $18.75 million in credit between the two.

BCAP has now been expanded to support mid-sized companies with larger financing needs. It will provide loans of up to $60 million per company and guarantees of up to $80 million.

  • Canada Emergency Commercial Rent Assistance:
    • The Government of Canada, in partnership with the provincial and territorial governments, is introducing the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses.
    • It offers forgivable loans to eligible commercial property owners so that they can reduce the rent owed by their impacted small business tenants by at least 75% for the months of April, May and June 2020.

Other targeted measures:

  • Up to $469.4 million in measures announced on May 14 to support Canada's fish harvesters, building on the $62.5 million for the new Canadian Seafood Stabilization Fund announced in April.
  • $675 million to provide financing support to small and medium-sized businesses that are unable to access the government's existing COVID-19 support measures, through the regional development agencies.
  • $287 million to support rural businesses and communities, including by providing them with access to capital through the Community Futures Network.
  • $250 million to assist innovative, early-stage companies that are unable to access existing COVID-19 business support, through the National Research Council of Canada's Industrial Research Assistance Program.
  • $20.1 million in support for Futurpreneur Canada to continue to support young entrepreneurs across Canada who are facing challenges due to COVID-19. The funding will allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.
  • $306.8 million to small and medium sized Indigenous businesses and Aboriginal Financial Institutions that offer financing to these businesses.
  • $5 billion in lending by Farm Credit Canada to producers, agribusinesses, and food processors.
  • $500 million to support cultural, heritage and sport organizations to address financial needs of artists and athletes.

Preparation and approvals:
SCMS contact: Riyadh Nazerally, Communications Advisor, 343-548-9038
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Frances McRae, ADM, SBMS, 343-291-1800

Small and Medium Enterprise (SME) support for employees during COVID-19

Question:

How is the Government of Canada helping small and medium-sized businesses support their employees?

Key messages:

  • The Government of Canada understands that many small businesses have seen their sales drop, and have had to make the hard decision to cut staff, and close their doors temporarily.
  • The government has introduced several measures to help companies keep people on the payroll, and to ensure that businesses are able to recover once the crisis is over.
  • The Canada Emergency Wage Subsidy covers up to 75% of an employee's wages — up to $847 per employee, per week. This includes new employees.
  • The Canada Emergency Response Benefit is providing $2,000 a month, for up to four months, to anyone who lost income due to COVID-19.
  • The government has invested $263 million in the Canada Summer Jobs program to help employers hire summer staff — that's up to 70,000 jobs.
  • The government extended the EI Work Sharing Program from 38 to 76 weeks, providing benefits to workers who agree to reduce their normal working hours.

Background:

Canada Emergency Wage Subsidy:

The Canada Emergency Wage Subsidy (CEWS) will provide eligible employers a temporary wage subsidy from March 15, 2020 to August 31, 2020. The subsidy will be available to businesses of all sizes, as well as non-profit organizations and charities, whose revenues have decreased by at least 30% due to COVID 19 (for the month of March, the government has made the CEWS more accessible by reducing the 30% benchmark to 15%). It will cover up to 75% of wages on the first $58,700 that an employee earns, up to $847 per week. The drop in revenue can be calculated based on the corresponding month in 2019 or the average of the revenue you earned in January and February 2020.

Extending EI Work Sharing:

The EI Work Sharing program, which provides benefits to workers who agree to reduce their normal working hours as a result of developments beyond the control of their employers, will be extended from 38 weeks to 76 weeks.

Temporary Changes to the Canada Summer Jobs Program:

The Canada Summer Jobs program provides opportunities for youth to develop and improve their skills within the not-for-profit, small business, and public sectors, and supports the delivery of key community services. Changes will be introduced to the program, including: an
increase to the wage subsidy (up to 100% of applicable minimum hourly wage), an extension to the end date for employment to February 28, 2021, and allowing employers to hire staff on a part-time basis.

Canada Emergency Response Benefit:

The Canada Emergency Response Benefit (CERB) will provide financial support to employed and self-employed Canadians who have lost their income as a result of COVID-19. Eligibility periods for the CERB are fixed in 4-week periods ($2,000 per period), with Canadians having the ability to re-apply for the CERB for multiple 4-week periods, to a maximum of 16 weeks.
To help more Canadians benefit from the CERB, the government has changed the eligibility rules (retroactive to March 15, 2020) to:

  • Allow people to earn under $1,000 per month while collecting the CERB;
  • Extend the CERB to seasonal workers who have exhausted their regular EI benefits and are unable to undertake their usual seasonal work as a result of the COVID-19 outbreak; and
  • Extend the CERB to workers who recently exhausted their regular EI benefits and are unable to find a job or return to work because of COVID-19.

Preparation and approvals:
SCMS contact: Riyadh Nazerally, Communications Advisor, 343-548-9038
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Frances McRae, ADM, SBMS, 343-291-1800

Impact of COVID-19 on Indigenous businesses

Question:

What is the Government of Canada doing to help Indigenous businesses weather the COVID-19 pandemic?

Key messages:

  • The Government of Canada has introduced a series of significant measures to help support Canadian businesses facing the impacts of COVID-19.
  • One of these measures is funding of up to $306.8 million to help small and medium-sized Indigenous businesses, and to support Aboriginal Financial Institutions that offer financing to these businesses.
  • This measure will help an estimated 6,000 Indigenous-owned businesses get through these difficult times.
  • The government also made available $15 million in non-repayable support for businesses in the territories to assist them with operating costs not already covered by other government measures.
  • The government is committed to examining further supports needed to ensure that these important businesses can continue to remain viable.

Supplementary messages:

Importance of Indigenous businesses:

  • We know that Indigenous communities depend on their locally owned businesses.
  • There are over 43,000 First Nations, Inuit and Métis business owners in Canada, according to the National Household Survey.
  • The Indigenomics Institute estimates the value of the Indigenous economy at $32 billion.

These business face a number of unique challenges, including rural or remote locations, distant supply chains, lack of adequate infrastructure/reliable internet connectivity, lack of credit history, and lack of financial management capacity.

Implementation of new funding ($306.8 million):

  • Financial support for Indigenous businesses will be provided through Aboriginal Financial Institutions, and administered by the National Aboriginal Capital Corporations Association and the Métis Capital Corporations in partnership with Indigenous Services Canada.
  • The funding will allow for interest-free loans, as well as non-repayable contributions, to help Indigenous businesses unable to access the government's existing COVID-19 support measures.
  • Additional funding will help Aboriginal Financial Institutions cover operational expenses, and help the National Aboriginal Capital Corporations Association increase its operational capacity.
  • The National Aboriginal Capital Corporations Association is a network of 59 Aboriginal Financial Institutions providing a full range of financial services, loans, and grants to First Nations, Inuit and Métis entrepreneurs to start new, and to expand existing, businesses.

Support for northern communities:

  • The Canadian Northern Economic Development Agency (CanNor) will immediately make available $15 million in non repayable funding, including direct support for ongoing costs incurred by northern small- and medium-sized businesses, in order to help them continue to play a vital role in northern communities.
  • CanNor's strong relationships with territorial governments best position the Agency to ensure that relief efforts are complementary and that funding gets to the businesses that need it most.

Indigenous tourism businesses:

  • The government is in constant contact with tourism stakeholders and business leaders to ensure that we are supporting businesses in this sector.

Regional Relief and Recovery Fund (RRRF):

  • Indigenous for-profit businesses and not-for-profit organizations are also able to apply for funding under the Regional Relief and Recovery Fund (RRRF).
  • Available through the regional development agencies (RDAs), the RRRF will provide $962 million of additional support.

Preparation and approvals:
SCMS contact: Marie-Michele Caux, Manager, 343-550-9496
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Frances McRae, ADM, SBMS, 343-291-1800

COVID-19 research investments

Question:

How will investments in science and research help in the fight against COVID-19?

Key messages:

  • The health and safety of Canadians is the Government's top priority.
  • That's why we are mobilizing our world-class researchers to deliver rapid responses to fight COVID-19.
  • We are making significant investments in the development of vaccines and treatments against COVID-19 and in the diagnosis of the disease.
  • We are also investing in important research to understand the social dynamics of transmission and how individuals and communities understand and react to the pandemic.
  • These investments in research, combined with investments in innovation and manufacturing capacity, will help stop the spread of COVID-19, and facilitate our return to work and economic recovery.

Supplementary messages:

  • The Government of Canada has mobilized Canada's research and scientific communities in response to the spread of the novel coronavirus (COVID-19).

Background:

On March 23, 2020, the Prime Minister launched Canada's Plan to Mobilize Science to Fight COVID-19, part of the more than $1 billion COVID-19 Response Fund.

The core of this initial announcement was Phase 1 of funding for Medical Countermeasures (MCM), including funding for:

  • AbCellera (antibody-based drugs to treat and prevent COVID-19);
  • Medicago (work on plant-based vaccines);
  • VIDO-InterVac (completion of a manufacturing facility to reach the standard required for human vaccine production);
  • The National Research Council's Human Health Therapeutics facility (developing and scaling-up promising vaccines for industrial production); and
  • Bluedot (digital health firm with early-warning technology for infectious diseases).

On April 23, 2020, the Prime Minister announced Phase 2 of funding for Medical Countermeasures (MCM), including $$1 billion in funding for medical countermeasures and vaccine research. Project highlights include:

  • Canadian COVID-19 Genomics Consortium (genetic sequencing of virus samples and human host genomes);
  • VIDO-InterVac (pre-clinical testing and clinical trials to accelerate development of a vaccine);
  • The National Research Council's Human Health Therapeutics facility (phase 2 of critical upgrades);
  • Strategic Innovation Fund (support for industrial-scale clinical trials);
  • The Canadian Data Monitoring Initiative (coordinate and share pandemic-related data);
  • Canadian COVID-19 Siro-surveillance Consortium (national survey to inform national immunization strategies);
  • Canadian Immunization Research Network (CIRN) (vaccine related research and clinical trials);
  • The National Microbiology Lab (NML) (Pre-clinical and Medical Countermeasures Facility); and
  • The Canadian Institutes of Health Research (research projects to accelerate the development, testing, and implementation of medical and social countermeasures).

In addition to measures to fight COVID-19, the government has also provided support to help sustain the academic research community and the highly-qualified research personnel who drive discovery and innovation.

  • On April 22, 2020, the Prime Minister announced nearly $9 billion in financial support for post-secondary students and recent graduates, including extending expiring federal research scholarships and post-doctoral fellowships, supplementing existing federal research grants and enhancing work opportunities through the National Research Council.
  • On May 15, the Prime Minister announced $450 million to help sustain the academic research enterprise and retain highly qualified research personnel. This investment includes: :
  • Wage support to universities and health research institutes not eligible for the Canada Emergency Wage Subsidy so they can retain research personnel funded from non-government sources; and
  • Support for universities and health research institutes to maintain essential research-related activities during the crisis and to ramp back up to full research operations once physical distancing measures are lifted.

Preparation and approvals:
SCMS contact: Pamela O'Leary, Manager, 343-548-8991
SCMS approval: Vicky Eatrides, ADM, 343-291-1652
Sector approval: Nipun Vats, ADM, SRS, 343-291-2366

National Research Council (NRC) COVID-19 investments and initiatives

Question:

What measures have the Government of Canada implemented to ensure the current and future viability of entrepreneurs, innovators and our scientific community?

Key messages:

  • Since the beginning of the COVID-19 crisis the Government of Canada has been working to quickly develop programs that meet the needs of Canada's healthcare sector, entrepreneurs, and innovators— providing them aid now and setting them up for future success.
  • The Government of Canada continues to take strong action to protect our economy, and the health and well-being of all Canadians.
  • The National Research Council of Canada (NRC) is working with partners in government, academia, industry, and healthcare to help find innovative solutions to address the challenges posed by the COVID-19 pandemic.
  • The NRC has been provided with more than $300 million to: 1) support innovative Canadian small and medium-sized businesses that need help to weather this storm through its Industrial Research Assistance Program (NRC IRAP) and youth employment programs; and 2) fund and collaborate on the most promising research and technologies through initiatives such as its upgrade to its bio-manufacturing facility in Montreal, its Pandemic Response Challenge Program and Innovative Solutions Canada challenges.

Background:

Since March, Prime Minister Justin Trudeau has announced funding for several initiatives led by or in partnership with the National Research Council of Canada (NRC). These measures include:

  • Supporting SMEs:
    • $15 million to support the NRC Industrial Research Assistance Program (NRC IRAP) in working with Innovative Solutions Canada to help Canadian small and medium-sized businesses (SMEs) by posting COVID-19 challenges that will expedite technology development and quickly bring COVID-19-related solutions to the market or for government procurement.
      • 80 proposals for the Lost-Cost Sensor challenge are currently in evaluation.
      • 16 firms have been shortlisted for the Diagnostic Kit Challenge and are currently under review.
    • A third challenge (Made in Canada filtration material for the manufacture of N95 respirators and surgical masks) was posted to the ISC website on April 7, 2020, and closed April 17, 2020.
      • Three recipients were approved for this challenge the week of May 11, 2020.
      • Additional challenges are currently in ideation.
    • $250 million for NRC IRAP to deliver the Innovation Assistance Program (IAP), providing liquidity to innovation-based SMEs in financial need due to the economic impacts of COVID-19. This program supports firms ineligible for other support programs. The IAP application portal was open from April 22 to April 29, 2020.
      • Following the review of all applications, over 2,000 firms were identified to receive IAP funding which will support over 24,000 jobs.
      • First deposits expected to be made during week of May 18, 2020.
  • Producing a vaccine:
    • A $15 million investment in the NRC bio-manufacturing facility in Montréal to establish Good Manufacturing Practice (GMP) compliance and ensure readiness to scale up production for human clinical trials of a COVID-19 vaccine candidate once one is found. Once fully operational, the NRC will have the capacity to produce 70,000 to 100,000 doses of vaccine per month.
    • On April 23, the Prime Minister announced an additional $29 million for the second phase of operations for this facility in view of maintaining GMP compliance to produce vaccines for clinical trials, and to include a final fill and finish facility.
    • Health Canada continues to provide guidance throughout the process. Following approval by Health Canada, the facility will be able to begin production of GMP-grade material for human clinical trials, once a candidate vaccine is available.
  • Funding NRC-led COVID-19 research:
    • $15 million in funding to create the Pandemic Response Challenge Program to accelerate the development of COVID-19 diagnostics and medical countermeasures.
    • As of May 15, the NRC has received more than 1,500 Expressions of Interest (EOI) from academia, government, and the private sector in the Challenge Program through the NRC website. The four areas of research focus are:
      1. rapid detection and diagnosis;
      2. therapeutics and vaccine development;
      3. digital health; and
      4. enabling adaptive responses.
    • The fourth pillar, enabling adaptive responses, was recently added in response to the number of enquiries to the NRC related to sterilization and personal protective equipment. Under this pillar, projects have already been initiated on N95 mask sterilization and certification, and on the production of reagents and other consumables needed to secure the supply chain for diagnostic testing
  • Supporting future STEM professionals:
    • $7.5 million to support students and postdoctoral research placements within the NRC, providing developmental opportunities while mitigating the impacts of reduced employment prospects during the COVID-19 pandemic.
    • Through the Youth Employment Skills Strategy, NRC IRAP will support additional student placement opportunities with innovative SMEs.
  • Vaccine development partnerships:
    • The NRC's Human Health Therapeutics Research Centre (Ottawa and Royalmount, Montréal) is working with a number of companies developing COVID-19 vaccines. The NRC currently has agreements with three companies developing COVID-19 vaccine candidates: VBI Vaccines Inc. (Massachusetts; signed on March 30, 2020), VIDO (Saskatchewan; signed on May 6, 2020), and CanSino Biologics Inc. (China; signed on May 7, 2020).

Preparation and approvals:
NRC Contact: Jeffrey LeBlanc, Corporate Policy Analyst; PSP 343-548-1609
NRC Sector Approval: Roger Scott-Douglas, Secretary General; 613-993-7378
NRC Approval: Iain Stewart, President; 613-993-2024

Relief actions by Canadian banks

Key messages:

  • To support Canadians financially, banks have committed to work with customers on a case-by-case basis to provide flexible solutions to help Canadians manage the challenges with COVID-19.
  • For individuals, these payment deferrals supports include:
    • Up to a six-month payment deferral for mortgages;
    • Payment deferrals for loans, including lines of credit and auto loans; and
    • Relief on credit cards, including reduced interest rates, by as much as 50 per cent.
  • Some financial institutions are also offering refinancing options, or waiving certain fees, including for Interac e-transfers.
  • According to the Canadian Bankers Association, as of May 13, 2020, more than 740,000 Canadians have taken advantage of mortgage deferrals or skip-a-payment relief, and over 377,000 approvals or requests to defer credit card minimum payments have been processed.
  • Canadian financial institutions are also providing small businesses with access to the Canada Emergency Business Account (CEBA) and the Business Credit Availability Program (BCAP), and direct deposit enrolment for emergency response benefits, including the Canada Emergency Response Benefit (CERB) and the Canada Emergency Wage Subsidy (CEWS), to enable timely availability of these benefits to Canadians.

Canada's COVID-19 Emergency Response: Bi-Weekly Report on Parts 3, 8 and 18 of Bill C-13 — Fourth Report, May 13, 2020

Canada's COVID-19 Emergency Response: Bi-Weekly Report on Parts 3, 8 and 18 of Bill C-13 — Fourth Report, May 13, 2020

Investment Canada Act and COVID-19

Question:

What is the federal government doing about foreign investment given the effects of COVID-19 on the economy?

Key messages:

  • The COVID-19 pandemic has threatened the viability of Canadian businesses in important sectors and the Government of Canada is taking strong action to protect the health and safety of all Canadians and to stabilize our economy.
  • Under these extraordinary circumstances, the government will subject certain foreign investments into Canada to enhanced scrutiny under the Investment Canada Act.
  • The government will ensure that in-bound investment does not introduce new risks to Canada's economy or national security.
  • Canada remains open to investment that benefits Canadians.

Supplementary messages:

On why this is being done:

  • The government has announced enhanced scrutiny under the Investment Canada Act (ICA or "the Act") for some investments at this time, to address the unique risks that have arisen due to the pandemic.
  • In the current environment, companies with depressed market valuations may become investment targets. This raises the potential for opportunistic investment behaviour that may not be in Canada's longer-term economic interests or that may harm our national security.
  • While the economy is experiencing the effects of COVID-19, the government will apply enhanced scrutiny under the ICA to all foreign investments related to public health or the supply of critical goods and services, and to all investments by foreign state-owned or state-directed investors, which may not always be commercially motivated.

On whether the government was not scrutinizing investments properly before COVID-19:

  • The ICA has always involved a rigorous review of foreign investments under established processes set out in the law.
  • Investors can expect to receive more questions from the government owing to the COVID-19 pandemic, and for reviews to be extended where necessary.

On whether the statement targets a specific country:

  • The ICA is not country-specific. Each investment is considered on a case-by-base basis.

Background:

On April 18, 2020, the Policy Statement on Foreign Investment Review and COVID-19 was published on the ISED website. The Statement does not introduce new authorities under the ICA but indicates the types of investments that will receive enhanced scrutiny under both the net benefit (where applicable) and national security provisions of the Act.

Reaction has generally been neutral to positive, with some commentators indicating that the measures should have been stronger or announced earlier given measures announced in other countries such as Australia, Spain, Italy and Germany. The United States recently undertook a major foreign investment review reform unrelated to COVID-19.

In general, these countries lacked authorities that Canada has had in place since 2009 under the ICA. The ICA has among the broadest review authorities of any country. It provides for the national security review of all foreign investments (including acquisitions of control, minority investments, and the creation of new Canadian businesses) at any dollar value (except where an investment is captured by other, sector-specific legislation such as the Bank Act). This national security review process is undertaken in consultation with Canada's national security and intelligence agencies.

Preparation and approvals:
SCMS contact: Derek Mellon, 343-291-1665
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Approved by: Jonathan DeWolfe, Director, IS, 343-291-1697

Export Development Canada (EDC) 2018 legislative review

Issue:

The 2018 Export Development Canada Legislative Review was launched by the Minister of International Trade on June 28, 2018, as required by the Export Development Act. A report was tabled in Parliament.

Key messages:

  • The 2018 Legislative Review of the Export Development Act is proceeding as planned.
  • This Review will help the Government ensure that Export Development Canada (EDC) continues to offer services which are adapted to the evolving needs of the Canadian business community.
  • A report for the Review was tabled in Parliament in June 2019 in alignment with the Export Development Act. The report contains key findings which will be studied further once it is assigned to a designated Parliamentary Committee.
  • As part of the Review, extensive consultations were held to ensure that the Government hears from all segments of the business community as well as from representatives from civil society.
  • Export Development Canada is considered one of the best export credit agencies in the world and plays an essential role in supporting Canadian exporters and investors.

Background:

The Export Development Act, which governs the operations of Export Development Canada (EDC), stipulates that it should be reviewed once every 10 years. Such a review will inform Parliamentarians in their own examination of the Export Development Act. Examination by Parliamentarians could lead to proposed amendments to the Act.

The 2018 Review was launched by the Minister of International Trade on June 28, 2018. The first phase of the Review was completed in the spring of 2019. A report containing the findings of the Review was tabled in Parliament in June 2019.

To assist in the conduct of the Review, Global Affairs Canada retained the services of International Financial Consulting Ltd. (IFCL), a Canadian firm which is a world leader in the review of issues related to export credit agencies. IFCL was selected through an open and competitive selection process. IFCL conducted the last review of EDC in 2008.

The 2018 Review is centred on nine themes:

  1. EDC's complementary role with the domestic private sector;
  2. EDC's place within Government;
  3. Meeting the evolving needs of Canadian business;
  4. Role of EDC in the changing global context;
  5. Corporate social responsibility and human rights;
  6. Comparison of the capacity of the Canadian trade financing system to that of other countries;
  7. Domestic power regulations;
  8. Governance of the Canada Account; and
  9. Development Finance Institute (FinDev Canada).

Extensive consultations with stakeholders were conducted as part of the Review. Stakeholders include exporters, financial institutions, representatives from the civil society, and government officials. IFCL has met with more than 100 stakeholders and more that 50 submissions related to EDC were presented through a dedicated website.

The next phase of the Review consists in an examination of the findings contained in the report by a Parliamentary committee to be identified.

Preparation and approvals:
Prepared By: Martin Charron/BPS
Consulted With: David Hutchison/BPS

Export Development Canada (EDC) providing support to Volkswagen

Issue:

EDC has loaned €400 million to Volkswagen

Key messages:

  • Export Development Canada (EDC) is a Crown corporation mandated to support and develop Canada's export trade.
  • EDC provided financing to Volkswagen in early 2015 prior to the launch of environmental investigations.
  • EDC ceased considering any new financing for Volkswagen once allegations of environmental offences were revealed.
  • EDC works at arms-length from the government and makes its own financing decisions.
  • We expect EDC to conduct robust environmental and social due diligence of project transactions it supports and expect EDC to be fully transparent and accountable for their transactions.

Background:

EDC is Canada's export credit agency. The Export Development Act provides EDC with the mandate to support and develop Canada's export trade and to respond to international business opportunities. EDC provides a range of trade finance and risk management services, including short-term credit insurance, direct loans, loan guarantees, bonding support, and political risk insurance. EDC is financially self-sustaining and has approximately 1,700 employees. In 2018, EDC served 8,617 Canadian companies, and facilitated $104.6 billion in exports and investments abroad.

The day-to-day operations of EDC are at arm's length from the Government. EDC is governed by a Chair and Board of Directors responsible for implementing the direction provided by the Minister of International Trade. EDC is expected to deliver on Canada's ambitious trade agenda while upholding the highest standards of responsible business conduct. In this regard, EDC adheres to multilateral standards developed by the Organisation for Economic Co-operation and Development (OECD) for export credit agencies in relation to environmental and social due diligence, sustainable lending and anti-bribery. EDC has recently built on these initiatives by introducing a comprehensive Human Rights Policy.

Volkswagen:

In April 2015, Export Development Canada (EDC) announced that it had provided €400 million (Approximately 526 million Canadian dollars at the time) in financing to Volkswagen under its "Pull Financing" program (Now called Connection Financing).

The purpose of EDC's Connection Financing program is to provide financing to large international corporations with important needs for goods and services which could be provided by Canadian suppliers. EDC uses the leverage provided by the provision of this financing to introduce suitable Canadian suppliers to these foreign corporations. As a result of this financing, Canadian suppliers benefit from privileged access to decision makers within those corporations.

The loan provided to Volkswagen was in relation to the expansion of the group's operations in Mexico. EDC's objective was to have Canadian suppliers of autoparts selected to supply the Volkswagen

Preparation and approvals:
Prepared By: Martin Charron/BPS
Approved By: Moran/BPD

Oversight of Export Development Canada (EDC) and the Canada Account

Question:

What oversight is there of the EDC and its Canada Account?

Key messages:

  • EDC is a Crown corporation with regular reporting requirements outlining its activities, performance, and strategic direction in alignment with Government priorities.
  • EDC is required to produce an annual report for both its Corporate Account activities and Canada Account transactions that are tabled in Parliament each Spring.
  • Since 2001, all Canada Account transactions have been disclosed publically, including information related to the parties involved, a value range, the country of transaction, and the date in which the deal was signed.
  • EDC has undergone extensive reviews in recent years, including those conducted by the Office of the Superintendent of Financial Institutions in 2014, the 2018 Office of the Auditor General Special Examination, and the 2018 Legislative Review of the Export Development Act.
  • EDC is playing a key role in the Government's economic response to the Covid-19 by providing emergency support to companies of all sizes in all sectors of the Canadian economy which is subject to appropriate oversight and due diligence."

Background:

EDC is Canada's export credit agency with a mandate to support and develop, directly or indirectly, Canada's export trade. The day-to-day operations of EDC are at arm's length from the Government. EDC is governed by a Chair and Board of Directors responsible for implementing direction provided by the Minister of International Trade. EDC reports to Parliament through the Minister of International Trade, who also recommends approval of EDC's annual corporate plan to the Treasury Board, with the Minister of Finance also approving EDC's Borrowing Plan.
The Canada Account is used to support export transactions which EDC is unable to support on its Corporate Account due to a combination of risks. EDC administers these transactions on the same basis as its Corporate Account activities and provides a Canada Account report to the Minister for parliamentary tabling on an annual basis.

In 2018, in accordance with the Export Development Act, a decennial legislative review was launched. As part of the review, on June 20, 2019, a report was tabled in Parliament and may be considered by a parliamentary committee. EDC has also undergone a Special Examination by the Office of the Auditor General of Canada in 2018, and a review conducted by the Office of the Superintendent of Financial Institutions in 2014.

Preparation and approvals:
Prepared By: Charron/BPS
Approved By: Moran/BPD

Support for the fisheries sector

The Canadian Seafood Stabilization Fund was established to support the marine commercial fish and seafood sector, which is the primary economic force in many of Canada's coastal and rural communities on both coasts, as it faces unprecedented challenges due to the impact of COVID-19. In particular, the fund will support fish and seafood processors put in required health and safety measures to keep operating, increase storage and freezer capacity so they can purchase and process more product from harvesters, as well as retool technologies and marketing efforts to meet changes in consumer demand. These investments will support Canada's marine commercial fish harvesting sector by giving confidence to fish harvesters that Canada's processors will have the capacity and capabilities to buy and process their product despite the challenges created by COVID-19.

Across the country, there are other financial support programs that can be accessed by all eligible workers and businesses. For example, the new Canada Emergency Wage Benefit and the Canada Emergency Wage Subsidy are programs meant to directly support workers that have had their income negatively impacted by the pandemic. Small businesses that depend on Canada's fisheries may also have access to credit through the Canadian Emergency Business Account program.

The federal government has also announced the Relief and Recovery Response Fund (RRRF), which provides almost $1 billion in available financial support for small and medium-sized businesses located across Canada, including for businesses associated with fishing and tourism. The RRRF includes $675 million to support regional economies across Canada, delivered through Canada's Regional Development Agencies. It also includes $287 million to support small businesses and communities in rural areas, delivered through the national network of Community Futures Development Corporations. Businesses interested in seeking financial support through the RRRF should contact their local Regional Economic Development Agency or Community Futures Development Corporation.

Most recently, the federal government has announced $469 million in funding to launch the new Fish Harvester Benefit and Fish Harvester Grant, for those who do not qualify for existing measures:

  • $267.6 million will be available through the new Fish Harvester Benefit, which will provide income support to eligible self-employed fish harvesters and crew members that cannot access the Canada Emergency Wage Subsidy.
  • $201.8 million will be available through the new Fish Harvester Grant, a non-repayable grant for harvesters who cannot access the Canada Emergency Business Account or similar measures. This program will provide up to $10,000 to self-employed commercial fish harvesters, to help offset fixed costs and business expenses.

Universal Broadband Fund

Question:

What is the status of the Universal Broadband Fund (UBF) that was announced in Budget 2019?

Key messages:

  • Canadians know that high-speed Internet access is no longer a luxury — it is necessary for all Canadians. The current crisis has only reinforced the importance of access to high-speed Internet as Canadians are working and learning at home.
  • That is why the Government of Canada has made billions available to support the building of rural and remote Internet infrastructure, including $1 billion for the new Universal Broadband Fund.
  • The government recognizes the urgency of bridging the digital divide for Canadians.
  • We look forward to launching the Universal Broadband Fund soon.

Supplementary messages:

On immediate broadband progress:

  • Over 50 rural and remote communities across Canada are already benefitting from completed Connect to Innovate projects that have the potential to bring improved internet speeds to over 25,000 households; and, right now, there are broadband projects in construction phase to improve connectivity for another 150 communities and 50,000 households by the end of 2020. Finally, 750 more communities and 250,000 households are on track to benefit from access to improved internet speeds with Connect to Innovate projects to be completed by the end of 2021.

On the Government's 2030 goal:

  • Our goal is for 90% of all Canadians to have access to high-speed Internet no later than 2021. This will be a very significant achievement. The remaining 10% represents the most difficult and challenging of households to reach and our goal is to have half of them connected by 2026 and the remaining 5% by 2030.
  • We are continually engaging with stakeholders looking for ways to better improve connectivity for rural and remote Canadians at a range of speeds and data capacities, including download speeds of 50Mbps and 10 Mbps upload speeds.

On factors affecting project rollout and efforts to accelerate:

  • Broadband projects, particularly those in hard-to-reach areas, require time to be designed, developed, and constructed. There are many factors that affect how quickly projects can be rolled out once funding has been approved, including human resources, materials, weather, and the capacity of project proponents. We continually work with proponents to help wherever and however we can to speed up projects.
  • We have listened to stakeholders and will be implementing a number of improvements to increase the ease and speed of the project application process under the Universal Broadband Fund, including significantly more detailed maps, a simpler application process, and a pathfinder service to assist smaller project proponents.

On whether broadband is an essential service or human right:

  • There is no doubt that high-speed Internet is essential for all Canadians. The current crisis has only reinforced the importance of access to high-speed Internet as Canadians are working and learning at home.
  • We recognize that telecommunications providers — including field workers who repair networks and staff at stores who repair phones and communications devices — are providing essential services to Canadians at this time.
  • I would like to take this opportunity to thank them for their important work.
  • The Government of Canada has made billions available to support the building of rural and remote Internet infrastructure, including $1 billion for the new Universal Broadband Fund.
  • Our goal is for 90% of all Canadians to have access to high-speed Internet no later than 2021. The remaining 10% represents the most difficult and challenging of households to reach and our goal is to have half of them connected by 2026 and the remaining 5% by 2030.
  • Over 50 rural and remote communities across Canada are already benefitting from completed Connect to Innovate projects that have the potential to bring improved internet speeds to over 25,000 households; and, right now, there are broadband projects in construction phase to improve connectivity for another 150 communities and 50,000 households by the end of 2020. Finally, 750 more communities and 250,000 households are on track to benefit from access to improved internet speeds with Connect to Innovate projects to be completed by the end of 2021.
  • The government recognizes the urgency of bridging the digital divide for Canadians and we are continually engaging with stakeholders looking for ways to better improve connectivity for rural and remote Canadians at a range of speeds.
  • We look forward to expanding on our success to date and launching the Universal Broadband Fund soon.

On Universal Broadband Fund engagement:

  • The federal government launched the "Get Connected" website in summer 2019. It provides Canadians an opportunity to submit feedback about their Internet service providers and to test their Internet speeds;
  • We have now launched new broadband coverage maps that provide significantly more detail than before to better identify underserved Canadians and help applicants submit targeted projects; and
  • We have been engaging with partners and stakeholders, including provinces and territories, municipalities, Internet Service Providers, and Indigenous groups on the design of the UBF to ensure it responds to the needs of rural communities, provides applicants the support they need, and can accept and approve projects quickly.

Background:

Universal Broadband Fund:

In Budget 2019, the federal government set a national target, in which 95 per cent of Canadian homes and businesses will have access to speeds of at least 50/10 Megabits per second (Mbps) by 2026 and 100 per cent by 2030, no matter where they are located in the country. To help reach this target, the Government committed $1.7 billion starting in 2019-2020 for a suite of new broadband initiatives. Included in this funding is $1 billion to launch a new program, the Universal Broadband Fund (UBF). The remaining funding was for a top-up to the Connect to Innovate program and $600 million to secure Low Earth Orbit satellite capacity for remote and northern communities.

ISED officials have been engaging with stakeholders on UBF program design. Engagement began in August 2019 with the launch of the Get Connected website. The website allows Canadians to do a speed test, provide feedback on their Internet service and read about all available federal broadband programs. The website also allows potential applicants to submit their proposed projects to obtain feedback on the availability of existing services in the area to help refine their final proposals in anticipation of the launch of the UBF. Additionally, all applicants to CTI and CCP were offered the opportunity to complete a survey about ISED's broadband programs. Finally, ISED is conducting targeted engagement with stakeholders including Internet service providers, industry associations, provinces and territories, and Indigenous organizations to help inform technical design aspects of the UBF.

Connectivity Strategy:

The Government published Canada's Connectivity Strategy in June 2019. The Strategy committed to connecting every Canadian to affordable, high-speed Internet no matter where they live by 2030, and to improve mobile cellular access from coast to coast to coast. The UBF is a key action under the Strategy, along with other complementary measures such as improving access to spectrum, reducing barriers to investment, and broadband funding from other entities including the CRTC, Infrastructure Canada, and the Canada Infrastructure Bank. The UBF is being designed in this context.

CRTC Broadband Fund:

In 2016, the CRTC established a fund of up to $750 million to help achieve universal access at speeds of 50/10 Mbps, as well as mobile coverage along major roads. The CRTC's fund is sourced from a levy on telecommunications service providers' revenues.

On June 3, 2019, the CRTC issued a notice of its first call for applications to its fund. The first call accepted applications for Yukon, Northwest Territories, Nunavut and satellite-dependent communities across Canada, and closed on October 3, 2019. The CRTC has since launched a second call for applications to help address needs in all areas across Canada, with applications due by June 1, 2020.

Preparation and approvals:
Sector contact: Krista Campbell, Spectrum and Telecommunications Sector, 343-291-3773
SCMS contact: Martin Agard, Communications and Marketing Branch, 613-292-0413
Sector approval: Krista Campbell, Spectrum and Telecommunications Sector, 343-291-3773

Tracking Government of Canada actions on COVID-19

Actions for Businesses:

Guaranteed loans:

  1. $20 billion loan guarantee for SMEs: New operating credit and cash flow term loans that financial institutions extend to SMEs, up to $6.25 million.
    Available to: Export sector and domestic companies. (EDC).
  2. Over $5 million in bank loan guarantees by the Government of Canada for exporting companies.
    Effective: March 24, 2020.
    Details available through financial institutions. (EDC).
  3. Canada Emergency Business Account: Interest-free loans of up to $40,000 guaranteed by the Government of Canada for the first year. If the outstanding loan balance is discharged by December 31, 2022, 25% of the loan will be written off, up to a maximum of $10,000.
    Eligible costs: Operating costs.
    Available to: Small businesses and NPOs with a 2019 payroll of $20,000 to $1.5 million.
  4. Small Business Loans (up to $100,000), with no application fee. Repayable over five years.
    Eligible costs: Working capital or other investments.
    Available to: Canadian companies in business for at least 24 months. Apply online. (BDC)
  5. Working Capital Loan(up to $2 million) for eligible businesses. Apply in branch through an account manager. (BDC).
  6. $20 billion — Co-Lending Program: Incremental credit amounts to SMEs for their operational cash-flow requirements. Maximum: $6.25 million, of which 80% will be provided by the BDC and 20% by the financial institution. Entrepreneurs should contact their main financial institutions to access this loan. (BDC and financial institutions).
  7. Canada Emergency Commercial Rent Assistance program for small businesses: Loans and/or forgivable loans to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May and June. (Federal and provincial governments — details to follow.)
  8. $306.8 million to support Indigenous businesses: This funding will allow these businesses to access short-term, interest-free loans and non-repayable contributions through Indigenous financial institutions.

Easing:

  1. Easing EDC credit-insurance parameters:
    • Cover losses on goods shipped, even if the buyer has not accepted the goods, subject to terms.
    • Waive the 60-day waiting period for claims. Valid for projects outside Canada.
    For information:
    • New clients: 1-800-229-0575 or enquire online.
    • EDC clients: For working capital and financial solutions, contact their account managers.
    • EDC clients: For insurance products, 1 866-716-7201 or email.
  2. Principal payments postponed for up to six months for existing clients. Apply through their account manager. (BDC).
  3. Income tax payments postponed until August 31, 2020, for income from March 18 to September 2020. Applies to balances and instalments. (CRA).
  4. Suspension of post-assessment GST/HST or income tax audits until mid-April. (CRA).
  5. Deferral of all GST/HST payments and customs duties owed for imports until the end of June 2020. (CRA).
  6. Three-month moratorium on client payments as of April 1. (CED).
  7. Easing of payment arrangements (CRA).
  8. CanExport — Program adjustments and relaxation of terms (GAC).
  9. Accelerated payments under the Canada Periodical Fund to provide financial assistance for Canadian magazines and periodicals (2020–2021) (PCH).
  10. $30 million — Waiver of Part I licence fees by broadcasters for the 2020–2021 fiscal year (CRTC).

Hiring Support:

  1. Canada Emergency Wage Subsidy (CEWS): Provides businesses with a subsidy of up to 75% of wages for each employee for the first $58,700, with a weekly maximum of $847 for a period of up to 12 weeks (March 15 to June 6, 2020). If possible, businesses should cover the 25% income gap.

Available to:

  • Individuals, taxable corporations, partnerships consisting of eligible employers, NPOs and registered charities that have recorded a decrease in their gross revenues of at least 15% in March 2020, and 30% in subsequent months. This decrease may be in comparison with revenues for the same period (same months) in 2019, or in comparison with average revenues in January and February 2020.
  • Public institutions (municipalities and local governments, Crown corporations, public universities, colleges, schools and hospitals) are not eligible.
  • Businesses in the cultural sector are eligible.
  • A calculator will soon be available on the CRA website to make it easier for applicants to apply.
Calculating revenues:
  • Revenues are calculated using the accrual or cash accounting method.
  • NPOs: Include most forms of revenue, excluding revenue from non-arm's length persons. Government subsidies received may or may not be included.

Calculating an employee's weekly earnings:

Include wages, salary and other remuneration. These are amounts that employers are generally required to withhold or deduct from the amounts to be remitted to the Receiver General in order to meet the employee's income tax obligation.

The following amounts are excluded: Severance pay, stock-option benefits or personal use of a company vehicle.

  • Employer eligibility for this wage subsidy will be determined solely on the basis of salaries and wages actually paid to employees.
  • This subsidy will be considered as income for businesses and will therefore be subject to corporate tax at the end of the year.
  • Retroactive to March 15, 2020.
  • Applications must be renewed every month.
  • Applications can be submitted online through a secure portal (to come in three to six weeks).
  • Employers are encouraged to take advantage of the new loans available to rehire their employees while awaiting the reimbursement of the wages paid.
  • Moreover, employers will receive a full refund of some employer contributions to the EI program, Canada Pension Plan, Quebec Pension Plan and Quebec Parental Insurance Plan for every eligible employee, for every week during which these employees are on paid leave and for which the employer is entitled to request the CEWS.

Note: Organizations that are not eligible may continue to be eligible for the previously announced wage subsidy of 10% of earnings paid from March 18 to June 20, to a maximum subsidy of $1,375 per employee, and $25,000 per employer. Information available online (further details to follow). (CRA).

  1. Canada Summer Jobs program enhancement: Subsidy providing up to 100% of student wages; employment can be from May 11, 2020, to February 28, 2021; part-time employment is eligible; the submitted projects and activities may be adapted to support essential services.

Available to: NPOs, small businesses and the public sector. Interested businesses and NPOs should contact their Member of Parliament. Young people can register online. (ESDC).

  1. $50 million — Program to support the food supply chain: $1,500 for each foreign worker to cover expenses related to the mandatory 14-day isolation period. Available to farmers, fish harvesters and food processors. (AAFC).

Support for innovation related to COVID-19:

  1. COVID-19 solution projects by innovation superclusters will be prioritized and facilitated. (ISED).
  2. $50 million — Support for the rapid production of medical products and hospital equipment by members of the NGen Supercluster. Projects will be selected for funding according to critical needs identified by the Government of Canada and the ability of manufacturers to produce products that are safe for both patients and health-care workers. Projects must be carried out from April to June 2020. Up to 100% of eligible expenses. Application Guide. Who can apply: Join the Supercluster (free). (NGen).
  3. $192 million — Strategic Innovation Fund for Canadian researchers and businesses in the life-sciences sector working on large-scale and later-stage promising research and development projects aimed at producing vaccines and medical supplies. (ISED).
  4. COVID-19 Challenges Procurement Program – Call for proposals for products and services needed to address COVID-19:
    • Phase 1 funding to successful SMEs to develop a proof of concept for their solution. (NRC IRAP).
    • Phase 2 funding to SMEs with the best concepts so they can develop a working prototype. (NRC IRAP).
    • The NRC, PHAC, HC or other federal department will then be able purchase the solution. Call for proposals and online registration. (NRC IRAP, ISED, HC and PHAC).

Procurement:

  1. Directory of medical supply manufacturers and businesses — Register online: Information shared with various federal departments, provinces and territories. (ISED).
  2. Increased flexibility and coordination in the Canada-wide procurement of medical supplies:

    Complete the form on the website for products or services that businesses can supply.
    • Important — If businesses are able to supply products or services that are not included in the list provided by PSPC, they should describe their capabilities in the "Other" section of the form. For more information, email PSPC. (PSPC).

Advice:

Advice on obtaining funding and support for tourism operators and SMEs. (RDAs).

Actions for workers:

Program flexibilities and enhancements:

  1. Enhanced flexibility for EI sickness benefits: Waiver of the one-week waiting period for EI benefits for workers who plan to apply for EI sickness benefits during their quarantine or self-isolation. To apply for benefits, claimants should call 1-833-381-2725. In effect until at least mid-September. Moreover, a medical certificate is no longer required. How to apply for EI sickness benefits. (ESDC).
  2. EI Work-Sharing program duration extended from 38 to 76 weeks. The application process has also been streamlinedfor employers and employees affected by a downturn in business due to COVID-19. Voluntary participation of employees, who must be consulted; tripartite agreement (employer, employee and Service Canada); work sharing excludes the CERB and wage subsidy. For more information on temporary measures or the Work-Sharing program, submit your questions by electronic mail or call the Employer Contact Centre at 1-800-367-5693, Monday to Friday, from 7:00 a.m. to 8:00 p.m. Applicant Guide. (ESDC).
  3. Deadline to file income tax returns extended to June 1, 2020, and deadline to pay amounts owing extended to August 31, 2020. (CRA).
  4. $1.9 billion — Temporary increase of the Canada Child Benefit: This action will ensure that families will receive an extra $300 per child as part of their April payment. (CRA).
  5. $5.5 billion — Additional help for low- and modest-income individuals and families through a one-time special payment of the Goods and Services Tax Credit. The average income increase for those benefitting from this measure will be close to $400 for single individuals and close to $600 for couples. (CRA).

Bank program flexibility:

  1. Six-month deferral for mortgage payments and relief on other products (car loans, etc.). Canadians are encouraged to contact their banking institutions directly.
  2. Reduced credit-card interest rates. Canadians are encouraged to contact their banking institutions directly.

Canada Emergency Response Benefit:

  1. Canada Emergency Response Benefit (CERB): This benefit will provide $2,000 per worker per month, for a maximum of 16 weeks until October 3, 2020 (one payment per month).

    Available to:

To come:

  • Students whose summer jobs have been compromised.

Conditions:

  • Workers who earned at least $5,000 in 2019 in employment and/or self-employment income, EI benefits, parental leave benefits or similar benefits paid through the Quebec Parental Insurance Plan.

Note:

  • Eligible Canadians who have lost their jobs may continue to apply for EI benefits.
  • Eligible Canadians who applied for EI benefits prior to March 15 will receive EI benefits.
  • Canadians who applied for EI benefits after March 15 are not required to apply for the CERB. It will be generated automatically.
  • Canadians who were already receiving EI regular and sickness benefits will continue to receive them and should not apply for the CERB. If their EI benefits end before October 3, 2020, they may apply for the CERB once their EI benefits have been exhausted if they are still unable to return to work because of the coronavirus.
  • Canadians who are eligible to receive EI regular and sickness benefits may still be able to access regular EI benefits if they are still unemployed after the 16-week CERB period.
  • SME director-shareholders who received a salary of $5,000 within the last 12 months or in 2019, who are not working and without income for 14 consecutive days over a period of four weeks, are eligible to receive the CERB.
  • Cultural workers (artists and artisans) may exclude royalties collected before the crisis when calculating their income to ensure their eligibility.

Availability:

Benefits available in 3 to 5 days by Direct Deposit, or in 10 days by mail.

Important: Apply by telephone at 1-800-959-2019 (21 hours a day, closed from 3:00 a.m. to 6:00 a.m.), seven days a week, or online through the CRA's secure My Account portal, or My Service Canada Account once a month, according to the applicant's month of birth:

Monday: January to March;
Tuesday: April to June;
Wednesday: July to September;
Thursday: October to December.

Information available online:

Since April 6, the CERB has replaced the Emergency Support Benefit and the Emergency Care Benefit. (CRA and ESDC).

Financial and economic support:

  1. Policy rate drop to 0.25%; increasing liquidity provision to maximize the banks' ability to extend credit to businesses and individuals and enhance bond purchases. (Bank of Canada).
  2. New Bankers' Acceptance Purchase Facility to support funding markets for SMEs. (Bank of Canada).
  3. Lowering the stability buffer requirement to 1.25% of risk weighted assets for domestic systemically important banks. The release of the buffer will support in excess of $300 billion of additional lending capacity. (OSFI).
  4. Insured Mortgage Purchase Program to buy back $50 billion in bonds in order to provide banks with sufficient liquidity. (CMHC).
  5. $5 billion lending capacity increase available for producers, agribusinesses and food processors affected by cash-flow issues and lost sales. (FCC).
  6. Emergency Community Support Fund: $350 million to support vulnerable Canadians. Funding will be provided through national charities (e.g., Centraide, the Canadian Red Cross and the Community Foundations of Canada), which will disburse funds to local community-based organizations that deliver essential services to those in need.

Measures for travellers:

Admission to the country:

  1. Canada closed its borders to non-Canadians (permanent residents and Canadian citizens) except for travellers whose family is Canadian, travellers in transit, diplomatic corps, flight crews and merchandise (March 18). The American border remains open for cross-border trade (effective March 20 at 11:59 p.m.). Foreign students, foreign nationals who hold a work visa and temporary foreign workers may enter Canada, despite the border closure, provided that they agree to a 14-day isolation period. Refugee claimants who do not cross the border at a point of entry will be returned to American authorities until the ban on non-essential travel is lifted. (CBSA).
  2. Four airports receive all international commercial flights. Flights are redirected to Montreal, Toronto, Calgary and Vancouver. (March 18) [TC].
  3. Mandatory quarantine for all Canadians returning from abroad (except essential workers), effective March 26 at midnight. The PHAC will conduct random checks/inspections. Subject to fines up to $750,000 and six months in jail. (March 18).
  4. Introduction of a mandatory quarantine plan for all travellers arriving at Canadian borders (land, air or sea), regardless of whether they are symptomatic or asymptomatic. A valid quarantine plan should include the following:
    • Accommodations stocked with food and medication;
    • Accommodations where there are no adults aged 65 and over or adults living with a chronic illness.
    If travellers do not have a valid plan, they will be provided with accommodations in establishments identified by Public Health (hotels). [Effective: April 15 at midnight.] (TC).

Health screening for travellers:

  1. Mandatory pre-boarding health screening for all passengers. Travellers who present symptoms will be prevented from boarding. (March 18). [TC].
  2. Symptom screening for inter-municipal transportation passengers: Travellers who present symptoms will be prevented from travelling (effective March 30 at noon). [TC].

Support to repatriate Canadians:

  1. Up to $5,000 — COVID-19 Emergency Loan Program for Canadians abroad to help secure their timely return to Canada and to temporarily cover their life-sustaining needs while they work toward their return. Online application form. (GAC).

Industry:

  1. Rent waivers for the country's airports. Effective from March to December 2020. (TC).
  2. Suspension of visitor services in national parks (March 19) and vehicle access to Parks Canada places (March 24). [PC].
  3. Restrictions for ferries and commercial passenger vessels capable of carrying more than 12 passengers:
    • Reduce by 50% the maximum number of passengers on ferries with a capacity of more than 12 passengers and mandatory implementation of practices to reduce the risk of spreading the virus, such as keeping passengers in their vehicles. (Effective: April 13).
    • Prohibit all commercial marine vessels with a capacity of more than 12 passengers from engaging in non-essential activities. These measures do not apply to pleasure craft, fishing vessels, medical-use vessels and commercial vessels that operate to support the movement of goods through Canada's supply chain. (Effective until June 30).
    • Canadian cruise ship are forbidden from mooring, navigating or transiting in Canadian Arctic waters. (Effective until October 31, 2020). [TC].

Public health actions:

Medical equipment:

  1. $500 million for provinces and territories to further support public health preparedness in their response to COVID-19 (testing, acquiring equipment and enhancing surveillance and monitoring). (HC).
  2. $100 million to enhance surveillance, increase testing at the National Microbiology Laboratory and ongoing support for preparedness in First Nations and Inuit communities (in addition to an initial $50 million that was provided to support the immediate public health response). (HC).
  3. $50 million — Personal protective equipment (surgical masks, face shields and isolation gowns) for provinces and territories, as well as to address federal government needs. (PHAC).
  4. Report anticipated or actual shortages of human prescription medicines in Canada: Drug Shortages Canada. (HC).
  5. Expedited approval request for medical devices and health/medical products (hand sanitizer, COVID-19 tests, lab coats, masks, swabs and drugs) [HC]:
  6. $305 million — Support Fund to procure medical devices for Indigenous and Inuit communities and First Nations (ISC).

Research and development:

  1. $275 million for research and development: Antivirals, vaccine development and support for clinical trials. (HC).
  2. $27 million to fund coronavirus research in Canada (HC).
  3. $15 million — NRC Pandemic Response Challenge Program to accelerate the development of diagnostics and medical countermeasures for a rapid front-line response. Three main research areas: rapid detection and diagnosis; therapeutics and vaccine development; and digital health. Online registration for SMEs, university labs and interested departments.
  4. $15 million — Expand bio-manufacturing capacity at the Royalmount Human Health Therapeutics Research Facility in Montreal in order to develop, test and scale-up promising vaccine candidates to be ready for industrial production. (NRC).

International support:

  1. $50 million — World Health Organization and other partners to address the worldwide outbreak and help more vulnerable countries prepare for and respond to the virus. (HC).

Communication and public education:

  1. $50 million for COVID-19 communications and public education efforts (PHAC).
  2. COVID-19 app: Real-time data, advice, information on prevention and links to financial supports. Available through the Apple App Store and Google Play Store. (HC).
  3. Canadians are advised to wear non-surgical masks when they leave their homes, particularly in situations where physical distancing may not always be possible.
  4. Wellness Together Canada portal: Mental health and substance use support available online and by text (free). (Government of Canada).

Acronyms:

AAFC: Agriculture and Agri-Food Canada
BDC: Business Development Bank of Canada
CBSA: Canada Border Services Agency
CED: Canada Economic Development for Quebec Regions
CERB: Canada Emergency Response Benefit
CMHC: Canada Mortgage and Housing Corporation
CRA: Canada Revenue Agency
CRTC: Canadian Radio-television and Telecommunications Commission
EDC: Export Development Canada
EI: Employment Insurance
ESDC: Employment and Social Development Canada
FCC: Farm Credit Canada
GAC: Global Affairs Canada
GST/HST: Goods and Services Tax / Harmonized Sales Tax
HC: Health Canada
ISC: Indigenous Services Canada
ISED: Innovation, Science and Economic Development Canada
NGen: Next Generation Manufacturing Canada (supercluster)
NPOs: Non-profit organizations
NRC IRAP: National Research Council of Canada, Industrial Research Assistance Program
NRC: National Research Council of Canada
OSFI: Office of the Superintendent of Financial Institutions
PC: Parks Canada
PCH: Canadian Heritage
PHAC: Public Health Agency of Canada
PSPC: Public Services and Procurement Canada
RDAs: Regional Development Agencies
SMEs: Small and medium-sized enterprises
TC: Transport Canada
Services aux Autochtones Canada : SAC
Services publics et approvisionnement Canada : SPAC
Société canadienne d'hypothèque et de logement : SCHL
Transport Canada : TC

Actions taken to support Canadians during the COVID-19 crisis

Question:

What are the Regional Development Agencies (RDAs) currently doing to help Canadians during the COVID-19 crisis?

Key messages:

  • The six RDAs are closely monitoring the impacts of COVID-19 on Canadian small and medium-sized enterprises (SMEs) and the economy of the regions.
  • Since April 1, the RDAs have offered their current clients a three-month moratorium on payments owed to them.
  • RDAs provide advice to businesses and organizations across Canada to help them navigate through the other federal programs and services available to them.

Atlantic Canada Opportunities Agency (ACOA):

  • ACOA has adjusted certain criteria for its regular programs in response to the exceptional circumstances businesses are facing.
  • ACOA is maximizing its program flexibilities to meet the current needs of small- and medium-sized businesses as they deal with the impacts of the COVID-19 pandemic.
  • ACOA has implemented an online application process for financial assistance to speed up its intake and evaluation process.
  • ACOA is engaging with provincial governments, health organizations and its clients to help Atlantic Canadian businesses respond to the crisis through its available programs, and support some businesses that are pivoting their operations to meet urgent needs.
  • ACOA is fielding calls from Atlantic Canadian businesses (clients and non-clients), taking the time to answer their questions, and directing them toward federal support measures available to suit their needs.
  • ACOA is helping businesses with cash flow issues and is continuing its ongoing work with local partners such as the Community Futures network to reach a broader range of businesses.
  • ACOA is also working with provincial health authorities and partners like the Business Development Bank of Canada (BDC), Export Development Canada (EDC) and the National Research Council (NRC) to support an effective and timely industry response.
  • ACOA is working on targeted measures to support critical sectors of the Atlantic Canadian economy that have identified expressed needs.

Supplementary messages on loan deferrals:

  • As of April 21, ACOA deferred payments totaling $15.4 million for 1005 commercial clients throughout Atlantic Canada.

Canadian Norther Economic Development Agency (CanNor):

  • Through the Northern Business Relief Fund, CanNor is making available $15 million of its existing funding for immediate relief to small and medium enterprises that are struggling as a result of the COVID-19 pandemic.
  • The Northern Business Relief Fund will provide up to $100,000 in grant funding to offset fixed operating costs for a period of three months, and ensure that critical small and medium-sized businesses in the territories remain viable.

Canada Economic Development Agency for Quebec Regions (CED-Q):

  • CED-Q has set up a call centre and remains attentive to the needs of entrepreneurs by working with all regional and local stakeholders to adapt its support to their reality and help them get through the crisis.
  • CED-Q supports businesses and organizations by helping them validate their eligibility for additional funding and/or a relaxation of their arrangements in order to relieve some of the financial pressure they are facing, and by informing them of the federal programs and services available to them.

Federal Economic Development Agency for Southern Ontario (FedDev):

  • FedDev is delivering more than $250 million of the Regional Relief and Recovery Fund in southern Ontario to support businesses that were economically impacted by the COVID-19 pandemic and did not qualify for existing support measures. This includes about $213 million to directly support liquidity needs of SMEs in the region, and $39.4 million to support rural enterprises and communities through the Community Futures Development Corporations (CFDCs).
  • As of May 19, FedDev approved 22 SME applications for total funding of $780,000, and executed agreements with 32 CFDCs, with the remaining four CFDC agreements expected to be executed imminently.
  • FedDev moved quickly to support its clients through this difficult period and implemented a number of measures and flexibilities that are helping them manage their costs.
  • FedDev provided cash relief to client firms by deferring more than $23 million in repayments to the Agency.
  • The Agency is also providing clients with advance payments for their projects and supporting new projects on an expedited basis — to get funding to companies that need it during this difficult period.
  • At FedDev's request, southern Ontario's Community Futures Development Corporations that serve SMEs in the region's rural areas are also offering emergency loans below prime interest rate and deferring repayments for existing loan clients.
  • FedDev is closely monitoring the economic impact of COVID-19 in southern Ontario to help inform the government's response. In addition, the Agency is helping to identify companies and other organizations able to support the urgent need for personal protective equipment (PPE) and other medical supplies.

Federal Economic Development Agency for Northern Ontario (FedNor):

  • FedNor conducts weekly assessments of the impact of COVID-19 across Northern Ontario through engagement with clients and community partners such as the Community Futures Development Corporations (CFDCs), Chambers of Commerce, and municipal economic development organizations.
  • As of May 18, FedNor received 479 COVID-related impacts on the regional economy, affecting 382 SMEs. Impacts include 192 businesses reporting reduced sales, revenues or bookings; 163 temporary closures, 141 reporting cancellations, and 67 companies laying off staff.
  • FedNor has also implemented a number of administrative tools and processes as a short-term relief measures. These include:
    • Amending project start and/or completion date;
    • Accelerating the reimbursement of claims and advances;
    • Adjusting cash-flows across fiscal years, adjusting project milestones and exploring other repayment strategies to meet client unique needs; and,
    • Extending 2019-2020 performance reporting deadlines.

Department of Western Economic Diversification (WD):

  • On May 13, 2020, WD launched its new Covid-19 support measures under the RRRF. Funding provided under the RRRF will assist SMEs that require additional liquidity support. For example:
    • WD is providing SMEs with interest-free repayable contributions of up to $40,000. The objective of this program is to assist western Canadian SMEs that do not qualify or have been rejected by the Canadian Emergency Business Account (CEBA) program or the RRRF — Community Futures Stream.
    • WD is also providing businesses with interest free repayable funding of up to $1,000,000 under the RRRF that have received assistance from other Government of Canada relief funding measures, but continue to struggle from ongoing liquidity pressures.
    • Together these programs have received over 1345 applications requesting assistance of more than $180M.
  • In the rural and remote communities in the west WD is supporting businesses through the Community Futures Network (CF).
    • Through the CFs WD will provide over $95.7M to CFs so that they can provide liquidity and business development support to SMEs and communities in the rural West.
    • CFs will provide loans to small enterprises including social enterprises that are unable to access larger federal relief funding programs, or unable to obtain loans/credit from traditional financial institutions.
  • In addition to its financial assistance to SME's WD continues to is actively engage its clients and western stakeholders to adapt our programs and provide pathfinding to other business and community supports during the COVID-19 crisis. For example These new measures include:
    • A simplified payment process, reduced reporting requirements to provide funds more quickly to recipients who desperately need it, as well as a deferral of repayments to July 1, 2020.
    • This includes our eligible not-for-profits, for-profits, and Western Canada Business Services Network clients.
    • These changes alone can assist 855 projects that have over $2B in approved WD funding.

Background:

General:

  • Minister Joly has participated in chamber of commerce call-ins across the country.

CanNor:

  • Announced by Prime Minister Trudeau on April 14, 2020, the Northern Business Relief Fund makes available $15 million in grants to assist with operating costs not already covered by other federal measures. This support will prioritize businesses with less than 20 employees, and provide up to $100,000 per recipient to cover eligible fixed expenses between April and July 2020. This initiative launched on April 20, 2020. It is funded through CanNor's existing budget.
  • While this initiative has only recently launched, CanNor has already had significant interest from businesses who are looking for relief funding. It is anticipated that this interest will grow over the coming days as more people become aware of the Fund.

FedDev:

  • The impact of COVID-19 is being felt by all of FedDev's clients, and across all sectors. Companies have expressed that they are experiencing reduced revenue, deferrals on customer orders, supply chain challenges, travel restrictions hindering their sales/marketing efforts and the need to preserve cash during this period of uncertainty.
  • FedDev was allocated about $252.4 million to deliver the Regional Relief and Recovery Fund in Southern Ontario. This includes about $213 million to provide direct liquidity support to SMEs, and $39.4 million to help rural enterprises and communities through the region's Community Futures Development Corporations.
  • The Agency also offered more than 600 flexibilities to help current clients manage costs through the pandemic, and provide them with more than $ 23 million in liquidity.
  • These measures include deferring payments for companies in the repayment stage of their project; offering advanced payments to all clients; and funding alternative activities to what are in existing contribution agreements.
  • The Agency is using available funding to support new projects on an expedited basis to help as many companies as possible during this difficult period.
  • FedDev provides operational funding to southern Ontario's 37 Community Futures Development Corporations (CFDCs) to deliver a range of small business services in rural areas, including providing loans below the prime interest rate, and deferring loan payments for existing clients.

WD:

  • As of May 19, 2020, WD has responded to 1450 RRRF applications requesting almost $195M in total funding.
  • WD is also actively reaching out to existing clients to discuss our new program flexibilities.

Continuous support to Canadians during the COVID-19 pandemic

Question:

What will the Regional Development Agencies (RDAs) plan to continue doing to assist Canadians during the COVID-19 pandemic?

Key messages:

  • The Government of Canada has announced the Regional Relief and Recovery Fund (RRRF), a special initiative of $962 million to be delivered by the six Regional Development Agencies (RDAs).
  • This initiative will enable the RDAs to provide immediate financial assistance to businesses that have cash flow needs to remain operational and cannot access existing federal emergency measures.
  • Included in this initiative, is $287 million for the Community Futures Network of Canada (CFN) to support businesses in rural communities.
  • RDAs will continue to support businesses that want to invest now to prepare for recovery.

Atlantic Canada Opportunities Agency (ACOA):

  • ACOA will allocate approximately $66 million through the RRRF to support Atlantic Canadian businesses, organizations and communities.
  • ACOA will continue to maximize its program flexibilities to meet the needs of small-and medium-sized businesses as they deal with the impacts of the COVID-19 pandemic.
  • ACOA will continue to engage with provincial governments, health organizations and its clients to help Atlantic Canadian businesses respond to the crisis through available programs, and assist some businesses pivot their operations to meet urgent needs.
  • ACOA will continue to work with clients to help them navigate the Agency's application process to avoid unnecessary delays and get financial support to eligible businesses as rapidly as possible.
  • ACOA will continue fielding calls from Atlantic Canadian businesses (clients and non-clients), taking the time to answer their questions, and directing them toward federal support measures available to suit their needs.
  • ACOA program officers are encouraging business officials impacted by the shift in the economy to get in touch with the Agency, which can help them navigate through the array of federal measures to find the most suitable one(s) to meet their needs.
  • ACOA will continue to help businesses with cash flow issues and is continuing its ongoing work with local partners such as the Community Futures network to reach a broader range of businesses.
  • ACOA will continue working with provincial health authorities and partners like the Business Development Bank of Canada (BDC), Export Development Canada (EDC) and the National Research Council (NRC) to support an effective and timely industry response to the COVID-19 pandemic.
  • ACOA will continue to consider targeted measures to support critical sectors of the Atlantic Canadian economy as needs arise.
  • ACOA will also continue to investigate ways to help small- and medium-sized enterprises through the recovery process when the economy resumes its normal pace of activity.

Canadian Northern Economic Development Agency (CanNor):

  • CanNor has $15 million remaining in unallocated funding for fiscal year 2020-21 across a variety of programs. This funding provides CanNor with an opportunity to support a continuum of investments that could support recovery of the territorial economies through strategic investments that are reflective of its Pan-Territorial Growth Strategy. The Northern Business Relief Fund was launched on April 20, 2020.
  • The Regional Relief and Recovery Fund (RRRF) will be used in part to complement this funding to further support SME's that are unable to access other COVID-19 business supports.
  • The new RRRF funding will also provide an opportunity to provide interest-free loans to SMEs who may be struggling due to the COVID-19 pandemic and who the Community Futures organizations target as a priority including SMEs in the retail, food service, professional services and other sectors that do not fall within CanNor's traditional areas of funding. CanNor will work with the CF organizations and/or territorial governments to ensure that their funding is complementary to CanNor's recovery efforts.

Canada Economic Development Agency for Quebec Regions (CED-Q):

  • CED-Q's budget envelope for the RRRF is currently estimated at $211.5M:
    • Direct support for SMEs and organizations (approx. $140.25 million) in sectors and businesses of strategic importance to the regions of Quebec;
    • Support for rural businesses and communities through Community Futures Development Corporations (CFDCs) and Business Development Centres (BDCs) (approx. $71.3 million).
  • Within the framework of its existing budgets, CED is continuing its efforts to help businesses invest in preparing for the recovery by placing special emphasis on the green economy and environmental performance, digitization, e-commerce, cybersecurity and review of their supply chains.
    • CED will develop and implement regional intervention strategies for each of its business offices that will make it possible to identify more specific priorities for each region and maximize the impact of its investments in efforts to prepare for the recovery.

Federal Economic Development Agency for Southern Ontario (FedDev):

  • FedDev moved quickly to deliver $252.4 million of the national Regional Relief and Recovery Fund to support businesses economically impacted by the COVID-19 pandemic that did not qualify for, or have been declined for existing support measures. This includes $213 million in direct support to SMEs in the region, and $39.4 million to support rural enterprises and communities through the region's Community Futures Development Corporations.
  • As of May 19, FedDev approved 22 SME applications for total funding of $780,000, and executed agreements with 32 CFDCs, with the remaining four CFDC agreements expected to be executed imminently.
  • In addition, FedDev is exploring how it could support not-for-profit organizations that provide important services to SMEs in southern Ontario.
  • FedDev is also considering how it can provide support to spur and strengthen the economic recovery in southern Ontario.

Federal Economic Development Agency for Northern Ontario (FedNor):

  • Through the RRRF, FedNor will deliver nearly $50 million of this new Fund under two streams:
    • $24 million of $675 million to support small- and medium-sized businesses, organizations, and communities across Northern Ontario; and,
    • $25.5 million of the $287 million to support rural businesses and communities, including by providing them with much-needed access to capital through the Community Futures Program.
  • FedNor will continue to monitor the impact of COVID-19 across Northern Ontario by working with partners like Community Futures Development Corporations, Chambers of Commerce, and municipal economic development organizations to gather information for weekly impact reports.
  • The organization will continue to monitor and prioritize projects and identify areas of action to support the Government of Canada's mitigation and recovery efforts.
  • FedNor will provide pathfinding services to other federal programs and services available.
  • FedNor will conduct internal analysis on the region's communities reliant on affected sectors (e.g. tourism, travel, accommodations) and potential supply chain impacts and adapt its programming to suit their needs.
  • FedNor will continue to reach out to clients to ensure that they have up-to-date information on the status of projects and applications, and answer any questions they may have.

Department of Western Economic Diversification (WD):

  • Through the Regional Relief and Recovery Fund (RRRF), WD will deliver $208.5M directly and $97.5M will be delivered by CF organizations in the west.
  • WD will continue to engage SMEs and adapt its programs to assist businesses both rural and urban that continue to suffer from the impacts of Covid-19.
  • WD will streamline its processes and support projects by businesses, organizations and communities, which will help them prepare for a successful recovery.
  • WD will continue to provide pathfinding services to other federal programs and services available.
  • WD will also continue to reach out to clients to ensure that they have up-to-date information on the status of projects and applications, and answer any questions they may have.

Background:

General:

  • The government's priority is that small and medium-sized enterprises (SMEs) affected by the economic impacts of COVID-19, which are experiencing different realities, have access to government support.
  • The Regional Relief and Recovery Fund (RRRF) was announced on April 17, 2020 by the Prime Minister of Canada. It has two components:
  • Direct support for SMEs that are not eligible for measures already announced or that have specific needs ($675M);
  • Support for rural businesses and communities, including providing much-needed access to capital through the Community Futures Network of Canada ($287M).
  • The specific terms and conditions will be communicated shortly.

CanNor:

  • CanNor has approximately $15 million in unallocated funding across several programs. An Expression of Interest for this funding closed in February 2020 and CanNor received 325 applications. This unallocated funding provides CanNor with an opportunity to support a continuum of investments that lead to a recovery of territorial economics through strategic investments that are reflective of its Pan-Territorial Growth Strategy.
  • The Regional Relief and Recovery Fund (RRRF) will give CanNor the flexibility to meet the needs of small and medium enterprises in the territories by:
    • augmenting the Northern Business Relief Fund if needed to provide additional and/or extended short-term relief to small and medium enterprises should demand warrant it and the initial funding be quickly exhausted; and,
    • using repayable or non-repayable contributions to provide support for small and medium enterprises and communities to transition through to economic recovery. These funds can be used to support key sectors.
  • In the territories, there are a total of 9 Community Futures Development Corporations: 6 in NWT and 3 in Nunavut. In Yukon, where there are no Corporations, CanNor is working with the territorial government to establish an approach for distributing this funding.
  • This new funding will provide an opportunity to expand these activities to reach more small and medium enterprises who may be struggling due to the COVID-19 pandemic, as well as provide post-Northern Business Relief Fund support to businesses in the retail, food service, professional services and other sectors that do not fall within CanNor's traditional areas of intervention, in order to complement CanNor's recovery efforts.

Regional Relief and Recovery Fund (RRRF)

Key messages:

The national Regional Relief and Recovery Fund (RRRF), delivered through the six Regional Development Agencies (RDAs), provides $962 million in additional support to Canadian businesses economically impacted by the COVID-19 pandemic that cannot access existing federal measures.

$675 million for SMEs facing financial pressure:

Applications can be submitted for:

  • Financial contributions (interest-free repayable contributions) to help support SMEs with operating costs, where business revenues have been negatively affected by the COVID-19 pandemic.
  • Fixed costs that will help mitigate impacts of COVID-19 on SME operations, such as, but not limited to, lease payments for existing equipment and machinery, property taxes and utilities.

For more information, including how to apply, please visit your local RDA's website.

$287 million to support rural businesses and communities with access to capital, delivered by the Community Futures Network:

  • In order to provide targeted assistance to the small towns and communities they serve, Community Futures partners will focus on assisting SMEs, including "main street" businesses such as retail shops, restaurants and corner stores, with loans up to $40,000. Sole proprietors may qualify for loans through their local Community Futures organization.

RDAs to focus assistance where it is most needed:

Covering every region of Canada, RDAs are well-suited to assist businesses in sectors that are key to local economies and communities:

  • RDAs will make every effort to extend the RRRF to as many businesses as possible to ensure no business is left behind. However, demand for funds may exceed available funding.
  • Each RDA has identified sectors that are critical to the resilience and survival of regional and local economies.
  • In Atlantic Canada, ACOA will support businesses and organizations that are experiencing cash flow issues and are struggling to remain in operation. Priority may be given to those in sectors such as advanced manufacturing, ocean industries, clean growth technology, and tourism.
  • In southern Ontario, FedDev Ontario may give priority to SMEs that are significant employers in communities and critical industries, such as manufacturing, technology, tourism or that support the government's commitment to underrepresented groups.
  • In northern Ontario, FedNor is giving priority to SMEs in sectors such agri-food, forestry, health and life sciences, mining and supply services, manufacturing, information and communications technology, tourism and others that are of significant importance to a region, community or supply chain.
  • Every region of Quebec is different and has sectors that are particularly promising for their respective economies. CED-Q may give priority to businesses in such sectors, based on available funds. These sectors will help each region seize development opportunities and maintain or create jobs, or will help support technological transition, the green economy, business resilience, and tourism.
  • In western Canada, Western Diversification (WD) will provide funding to retain diverse and valuable talent; maintain sector knowledge and skills; maintain capital flow and critical supply chains, increase capacity to withstand supply chain disruptions; protect technologies and processes that improve resilience, productivity, and competitiveness, and protect vital intellectual property.
  • In the territories, CanNor will provide targeted relief and stabilization support in key sectors including, but not limited to, tourism, fisheries, the mining supply chain, local food production and processing, regional innovation ecosystems and community infrastructure.