Appearance before the Standing Committee on Industry, Science and Technology (INDU) by the Minister of Economic Development and Official Languages – April 29, 2020

29 April 2020

COVID-19 response: Tourism

Question:

What is the Government doing to support the tourism sector during the COVID-19 outbreak?

Key messages:

• Tourism was one of the earliest sectors affected by this pandemic and it is expected to face a slow recovery.
• Hotels and restaurants have largely been closed or reduced activity significantly. Airlines and cruise ships have drastically reduced or cancelled their services. Countless events, from local festivals to world-class events have been cancelled or postponed.
• Businesses — both small and large — in all regions of the country, including Indigenous tourism stakeholders, have been affected.
• The Government has announced emergency relief measures to support businesses, workers and individuals facing hardship, including those in the tourism sector.
• The COVID-19 Economic Response Plan allows businesses to access credit, retain employees, and defer tax payments. It also provides direct assistance to workers, individuals and students.
• In particular, the Regional Relief and Recovery Fund, implemented through the six regional development agencies, provides $962 million to help businesses and organizations to continue their operations and prepare for recovery.
• The Government also announced up to $306.8 million in funding to help small and medium-sized Indigenous businesses, and to support Aboriginal Financial Institutions that offer financing to these businesses, in partnership with Indigenous Services Canada. These measures will help 6,000 Indigenous-owned businesses.
• Events are a key part of tourism. As you know, we are establishing a $500 million COVID-19 Emergency Support Fund for cultural, heritage and sport organizations that will help address the financial needs of affected organizations.
• I have been holding regular calls with my Provincial and Territorial counterparts to share information and work collaboratively on the situation facing the Tourism sector in all regions of the country.
• The government will continue to listen to stakeholders, and make efforts to adapt our response to meet the needs of our economy and our tourism businesses.

Background:

Tourism is a key sector in the Canadian economy. In 2019, in accounted for 2% of GDP, 4% of jobs and 22.1M international tourists in 2019.

Travel restrictions and physical distancing measures have largely eliminated international and domestic tourism. Operators and businesses are struggling to keep the doors open. Destination marketing organizations are on the verge of disappearing.

Sector representatives have provided feedback on their specific needs for support:

• Tourism Industry Association of Canada (TIAC), the Hotel Association of Canada (HAC), and Restaurants Canada (RC) asked for GST/HST remittance to be waved for Q1-2020 and that $6.9B in unsecured credit facility be made available for the tourism sector.
• Tourism sector stakeholders made presentations to the Parliamentary Finance Committee (FINA) on the state of the tourism sector and support required for operators to see them through the crisis. The focus of needed relief was on access to liquidity.
• Indigenous Tourism Association of Canada (ITAC) launched the COVID-19 Stimulus Development Fund for Indigenous tourism businesses, funded by re-allocating development grant funds to this immediate need. Maximum loan amounts per business total $25,000. It has requested federal funds of $550 million to offset these measures.

The COVID-19 Economic Response Plan introduced many measures of general application for which the Tourism sector may apply. There are additional measures recently announced that could offer the tourism sector a more targeted response. For example, the Regional Relief and Recovery Fund (RRRF) will help businesses and organizations to continue their operations by permitting local Community Futures to offer liquidity measures, including paying their employees; and to support projects to prepare for a successful recovery.

The Government also announced $306.8 million in funding to help small and medium-sized Indigenous businesses. The funding will allow for short-term, interest-free loans and non-repayable contributions through Aboriginal Financial Institutions and administered by the National Aboriginal Capital Corporations Association (NACCA) and the Métis capital corporations in partnership with Indigenous Services Canada, which offer financing and business support services to First Nations, Inuit, and Métis businesses. These measures will help 6,000 Indigenous-owned businesses.

Cultural and sporting events are heavily impacted. The $500 million COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations was recently announced to support cultural, heritage and sport organizations that will help address the financial needs of affected organizations so they can continue to support artists and athletes.

COVID-19 and the cancellation of major events

Question:

What will happen to festivals that have been cancelled or postponed because of the COVID-19 crisis if they have received funding from regional development agencies?

Key messages:

• Our communities and small and medium-sized businesses are experiencing unprecedented social and economic impacts due to COVID-19.
• Regional Development Agencies are responding to these impacts on a daily basis through their suite of programs.
• Regional Development Agencies are reaching out to existing clients with an agreement of funding for events that are being cancelled as a result of COVID-19 to discuss existing flexibilities.
• The government is committed to supporting these important organizations.

Supplementary messages:

• The regional development agencies will work with their clients to reallocate already approved but unspent funding to other relevant activities.
• Flexibilities may include future business development, new programming for 2021, diversifying target audiences, producing online content, or any other agreed-upon proposal.
• This support will help keep the contribution recipients' staff employed and will assist with their recovery and long-term success.

Preparation and approvals:
SCMS contact: Marie-Michele Caux, Manager, 343-550-9496
SCMS approval: Vicky Eatrides, ADM, 613-292-4016

Cancellation of the 2020 Calgary Stampede

Question:

Federal support for the Calgary Stampede.

Key messages:

• The Government of Canada understands the great cultural and economic significance that the Calgary Stampede represents to the City of Calgary and the province of Alberta.
• The cancellation of this world-class 10-day event has an impact of more than a half a billion dollars on the Calgary region.
• We are working to see what type of support can be provided to the Calgary Stampede Organization to ensure that it can continue to be a marquis tourism event in western Canada.

Background:

On April 23, the 2020 Calgary Stampede was cancelled for the first time in nearly a century due to COVID-19 and the consequent ongoing ban on large gatherings. The event was scheduled to take place July 3rd-12th.

The Stampede event began in 1912, and has occurred annually since 1923. It has since earned a global reputation, due to its incorporation of a variety of activities including rodeos, a parade, concerts, performing and visual arts, agricultural competitions, Indigenous exhibitions, trade shows, and an amusement park. Culturally, the event is billed as embodying and celebrating "the people, the animals, the land, the traditions and the values that make up the unique spirit of the west", and is seen to contribute significantly to quality of life in Calgary and southern Alberta. Outside of the 10-day event, Calgary Stampede also hosts more than 1,200 world-class business, tourism, sporting, hospitality and community events annually.

The cancellation marks a major blow for the city of Calgary, which has faced significant impacts from COVID-19 and the oil price plunge, both of which have compounded several years of economic stagnation. Since 2014, Calgary has faced years of low economic growth, high unemployment, high office vacancy rates, mass layoffs and declining capital investment, all of which have taken a significant toll on municipal revenues.

While there is general public understanding as to the necessity of the decision, the cancellation is a blow to the morale for many Calgarians who view the event as a marker of community and civic identity. Many media reports point to the fact that the Stampede still proceeded during two world wars, the great depression, and in 2013 despite devastating floods that damaged many of the Stampede facilities just weeks before the event.

Economic Impact of the Calgary Stampede:

The 10-day stampede event is one of the largest travel and tourism draws for the city of Calgary, with many local businesses including restaurants, hotels, and retailers relying on the influx.

According to a report by the Conference Board of Canada, the annual economic impact of Stampede activities is estimated at $540 million across Alberta, with the 10-day event accounting for $283M of that.

According to media reports, the event has brought in an average of $79.2M in gross revenue per year over the past five years and turned a profit of $21.4M after expenses.
2019 saw $85M in gross revenue and nearly 1.3 million visitors, the second-highest on record. The event draws tourists, vendors and rodeo competitors from around the world. The event employs 3,500 workers, many of them youth, and utilizes 2,300 volunteers.

In March 2020, the Calgary Stampede organization laid off 80% of its workforce (900 employees); it is not clear whether more layoffs will be coming as a result of the cancellation. Prior to the cancellation, the Calgary Stampede indicated that officially terminating employees would be a multi-million dollar expense to the organization and may put it at risk of surviving.

An associated stampede event that Western Economic Diversification Canada (WD) has funded in the past is the Stampede Investment Forum (SIF). It has also been cancelled this year. Co-hosted annually by Calgary Economic Development (CED) and the Government of Alberta, the SIF's objective is to attract direct investment through companies headquartered internationally or in other parts of Canada. At the 2019 SIF, companies from 15 different countries participated in the event, with 80% of participants anticipating to make investments of $1M– $50M dollars in Alberta.

Previous WD Support:

In 2009, WD announced funding of $5M to enhance the redevelopment and expansion of the Calgary Exhibition and Stampede Park and strengthen its impact on the regional economy. This funding positioned the Park as a multi-use, year-round destination for local, national and international visitors. It succeeded in growing the organization's capacity to hold a global-level event.

In 2018, WD provided CED with a $120,000 investment towards a $300,000 project to organize and host the 2018, 2019, and 2020 Stampede Investment Forum. Given its 2020 cancellation, WD has extended the project to July 2021 in order to support next year's event.

Federal Support:

Potential sources of funding to support the Calgary Stampede that are being explored include the following:

• COVID19 Emergency Support Fund for Cultural, Heritage and Sport Organizations that will be administered by Canadian Heritage. This fund will provide $500 million to address the financial needs of affected organizations within these sectors;
• The Regional Relief and Recovery Fund to be administered through Western Economic Diversification Canada to address unique local needs across the west; and
• Through Agriculture and Agri-food Canada, there may be opportunities for limited funding under the Canadian Agricultural Partnership program and the Agri-Competitiveness Program, which provide support to national fairs and exhibitions.

Official languages sector organizations in the context of COVID-19

Question:

The current health crisis is having significant impacts in various spheres of activity, including the official languages sector in Canada and in official language minority communities. The Government of Canada is taking measures to support recipient organizations of the official languages support programs.

Key messages:

• It is important to support official languages sector organizations, who are experiencing the impacts of the current health crisis, like many other sectors.
• We are making use of the available flexibilities in our official languages support programs, in order to provide funds to recipient organizations as quickly as possible.
• I also encourage official languages sector organizations to avail themselves of the new measures put in place by the Government of Canada to support employers and Canadians.

Background:

• Canadian Heritage has revised the administrative functioning of its official languages support programs (OLSPs) in order to accelerate the transfer of funds to recipient organizations in this period of crisis, by making use of available flexibilities and by improving processes. The Department is also taking administrative measures to accommodate official languages sector organizations, for example by pushing back certain deadlines.
  • OLSP core funding supports the operational costs of more than 280 non-profit organizations. The OLSPs represent approximately $431 million annually (2019-2020 forecast). Requests for proposals for 2020-2021 projects under six program components were conducted in fall 2019 and winter 2020, and the approval process is underway.
• The Government of Canada's Economic Response Plan for COVID-19 includes a number of measures to support employers, workers and Canadians in general. Eligible OLSP recipient organizations will be able to avail themselves of some of these measures. For example:
  • Emergency wage subsidies, available to employers (including non-profit organizations) who experience a 15% decrease of revenues in March and 30% in April/May 2020;
  • Temporary wage subsidies for employers (including non-profit organizations) who are eligible for the small business deduction;
  • A new emergency fund ($500 million) to support organizations in the arts, culture and sports sectors, so that they may continue supporting artists and athletes;
  • Emergency support ($9 million) for local organizations providing services to seniors (through the New Horizons for Seniors program);
  • Emergency support ($350 million) to support vulnerable Canadians through charitable and non-profit organizations providing essential services to people in need; and
  • Temporary changes to the Canada Summer Jobs program to help businesses and young Canadians impacted by COVID-19.
• The Prime Minister has also announced the Government of Canada's intention to provide emergency help for commercial rent, to which non-profit organizations should be eligible.
• The Assemblée de la francophonie de l'Ontario recently released the results of a survey concerning the impact of the COVID-19 crisis on francophone organizations and institutions in Ontario, which were also communicated in an April 14, 2020 article in Le Droit. According to the article, francophone organizations in Ontario are having difficulty maintaining their services and their funding during the COVID-19 crisis. The results suggest that 20 of the 131 organizations surveyed in March reported losses of almost $200,000, along with weekly deficits of $80,000 to $90,000.
• Francophone communities outside Quebec represent vulnerable populations in the current context, due to their demographic composition (greater proportion of persons over the age of 65) and their presence in greater proportions in rural settings and smaller communities.

Preparation and approvals:
Prepared by: Sarah Boily (819-934-9195)
Director of Communications: Annick Hector (819-994-2570)
Director General: Denis Racine (819-994-0943)
A/Assistant Deputy Minister: Jérôme Moisan

Public communications on COVID-19 in both official languages

Question:

The COVID-19 health crisis requires information and intensive communications with the public, at all levels of government. The use of Canada's two official languages in communications with the public is an intergovernmental issue at a cross-Canada scale.

Key messages:

• In a health crisis like that of COVID-19, government communications at all levels with the public in the official language of their choice are crucial.
• I will continue to remind my colleagues of the importance of the full respect of the Official Languages Act by federal institutions; in a time of crisis, it is a matter of security.
• The Government of Canada provides $133.5 million over five years to support provincial and territorial services in the minority official language. We encourage our provincial and territorial counterparts to ensure the inclusion of official language minority communities in their public communications.

Background:

• In an April 23, 2020 press release, the Commissioner of Official Languages refers to gaps in the federal government's communications with Canadians in both official languages. He writes: "Canadians must be able to understand messages directed to them from all federal institutions, particularly in the current context. Beyond the Official Languages Act, it's a matter of respect and safety for all Canadians. I have therefore communicated with all deputy ministers and with official languages champions across federal institutions to remind them of the importance of meeting their obligations to communicate with the public and their employees in both official languages at all times in order to ensure the respect and security of all Canadians."
• On April 21, 2020, researcher Linda Cardinal published an article in the newspaper Le Droit highlighting communication issues in certain provinces across the country, where the Primers, responsible for daily press briefings on the pandemic, are not bilingual. This is the case in Ontario, the most populous province and in New Brunswick, the only officially bilingual province in the country. These leave the public with the impression that in time of crisis, French or bilingualism become secondary issues. The researcher underlines the importance of bilingualism as "a stake in citizenship, public health and security" [free translation] especially in the context of a health crisis.
• This issue was also reported by CBC-Radio-Canada on March 25, 2020, in an online article in which the public broadcaster highlighted breaches of provincial official languages laws during press briefings in New Brunswick.
• In terms of communications with the public, the Official Languages Act essentially applies to federal institutions and leaves room for province and territories to legislate. Furthermore, from a constitutional point of view, sectors such as Health and Education fall largely under provincial jurisdiction.
  • A large part of the private sector, such as private companies (including those under federal jurisdiction) are also not subject to the Official Languages Act. These include banks and telecommunications, road, rail, air and marine companies, which operate across several provinces and territories. These companies have currently no language requirement in the context of health crisis.
• Federal funding for bilateral service agreements with the provinces ranges from $350,000 to $1.4 million per year, depending on the province. Half of the provinces receive between $1.2 million and $1.4 million annually.
  • The Government of Canada provides $133.5 million in support over five years to maintain the delivery of provincial and territorial services in the minority official language.
  • Canadian Heritage allocates $9.6 million per year to provincial governments, under federal-provincial agreements on services in the minority language.
  • In addition, the 2020-2021 programming fund for Official Languages Support Programs (OLSPs) covers the operational costs of more than 280 organizations. The OLSPs represent approximately $431 million per year (2019-2020 forecasts).
• In the context of a health crisis, to promote access to information in the official language of one's choice through the various levels of government, the policy instruments available to the Government of Canada remain the federal OLSPs, to which organizations from official language minority communities have access.
  • Incidentally, the Government of Canada has the power to modify or soften the access criteria for the use of grants and contributions to support community organizations in the official languages sector, to enable them to face out the economic crisis that will succeed the health crisis.

Preparation and approvals:
Prepared by: Sarah Boily (819-934-9195)
Director of Communications: Annick Hector (819-994-2570)
Director General: Denis Racine (819-994-0943)
Assistant Deputy Minister: Maia Welbourne (819-934-2200)

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 a May 11th date for relaxing requirements, including schools; however, it is still subject to the state of readiness of technology measures.

On April 14th, 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 quarter 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 is focused on helping Canadians and businesses 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 in the face of uncertainty.
• Over the past few weeks, we spoken with thousands of businesses across the country.
• We are now delivering the largest single support package in our 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 their costs low.
• We will do whatever it takes to help entrepreneurs and small businesses during this crisis.

Supplementary messages:

On some businesses being ineligible for support:

• 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.
• Nothing is off the table, and we will continue to refine and make changes to these programs as needed.

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

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 plummet, and have had to make extremely difficult decisions to cut staff, or even 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 will provide a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their 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 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.

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 up to $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

Mobilizing Industry for personal protective equipment (PPE) production

Question:

How is the Government of Canada helping mobilize Canadian industry to fight the COVID-19 pandemic?

Key messages:

• The health and safety of Canadians is the government's top priority.
• The Government's Plan to Mobilize Industry to Fight COVID-19 will provide critical medical supplies and equipment to healthcare workers.
• Since the outbreak of COVID-19, the Government has been working closely with industry to address those areas that require urgent investment.
• In collaboration with Canadian industry, the Government is building domestic capacity, finding new innovative solutions and forming new partnerships to respond to Canada's needs.

Background:

From our first call to mobilize Canadian industry on March 20, we have fielded more than 5,400 responses from Canadian businesses and industry, each one ready to step up and help meet the needs of Canada's health care system.

We are engaging with all companies that have submitted the offer of support through our Call to Action to assess how they can support the urgent needs of Canadians and front line health workers.

These companies are from across Canada, such as:

• Bouctouche Bay Industries in New Brunswick, with the assistance of ACOA, which is producing face shields for health care workers in Nova Scotia;
• Le Groupe CTT, specializing in textile technologies from Saint-Hyacinthe, Québec, received financial support to acquire the necessary equipment for the certification of protective gowns for health care workers; and
• VIDO-Intervac, based at the University of Saskatchewan in Saskatoon received $12 million to modernize their process in order to develop and scale up vaccine production for the domestic and commercial markets.

Wireless data and privacy

Question:

Is the federal government using Canadians' wireless data to understand COVID-19 measures?

Key messages:

• The Communications Research Centre is analyzing de-identified wireless data to help fight the spread of COVID-19, and is sharing its analysis with the Public Health Agency of Canada.
• The anonymized data will help identify mobility patterns to provide insights into self-distancing and emergency measures.
• This work respects all applicable privacy laws, and the data is publically available. It has been anonymized and aggregated — it does not contain any personal information.
• Canadians can be assured that their privacy is being protected.

Supplementary messages:

• The health and safety of Canadians is the government's top priority.
• The government will continue to ensure that its public health interventions are evidence-based, informed by science and based on the most robust data available.
• This includes work on applications to fight COVID, where any application would conform to the principles we set out in the Digital Charter, and have the privacy of Canadians as a fundamental element. While the Government is looking seriously at how to bring these digital resources to bear in this exceptional pandemic, that will never come at the cost of the privacy of Canadians, nor ever draw on cellphone data without consent.

Background:

ISED's Communications Research Centre (CRC) conducts advanced wireless technologies research related to spectrum management. It uses commercial, de-identified wireless-related big data, AI and data science to see how spectrum is used, and to predict where it might be used next. Some of CRC's research has been redirected to assist with the government's COVID-19 efforts by providing data, analytics and artificial intelligence expertise to the Public Health Agency of Canada (PHAC).

Currently, the CRC shares daily analyses with PHAC that describe mobility patterns across the country, providing insights on the impacts of self-distancing and emergency measures to further complement PHAC's analysis to understand how the outbreak may spread.

Preparation and approvals:
SCMS contact: Kathleen Guillot, Manager, 613-402-9025
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Patricia Brady, Director General, SIPS, 613-790-7126

Connectivity pricing during COVID-19

Question:

What is the Government doing to support smaller internet service providers (ISPs) during the COVID-19 pandemic?

Key messages:

• The current crisis has reinforced the importance of access to high-speed Internet as Canadians are working, learning, and communicating from home.
• We know this is a very difficult time for all Canadians. Canada's networks have been delivering well to keep us connected, but we recognize that there continue to be challenges.
• We are engaged with Canada's telecommunications service providers to ensure that they can continue to provide the services upon which we all rely to stay connected and informed.

Background:

ISED and the CRTC have been engaging with ISPs since the beginning of the pandemic on network resiliency and availability issues. Overall, Canadian networks are holding up well. With respect to costs of home internet access, most service providers have proactively waived data overage fees and have taken other actions to accommodate the current situation.

The Government of Canada is continuing to work with industry, and has been adjusting regulatory requirements and timing so that industry can focus on near-term needs. Broad-based economic support for small businesses is available to, and assists, smaller ISPs. Direct financial support to Canadians is also helping them continue to pay their internet bills.

A number of smaller ISPs are concerned about the rates and terms for access to wholesale capacity on the networks of the larger providers. They are engaged with the CRTC, in its role as the independent regulatory tribunal, on these issues. Certain rates in question are also subject to appeal, including to the Federal Court of Appeal.

Additionally, ISED has extended the payment date for annual licence renewal fees to September 1, 2020 to provide immediate cash flow relief. Further, ISED has allowed unused spectrum to be shared between telecommunications service providers to increase coverage and capacity. ISED has also accelerated the process to get licences.

Preparation and approvals:
SCMS contact: Kathleen Guillot, Manager, 343-548-8571
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Patricia Brady, Director General, SIPS, 613-790-7126

Rural and remote broadband

Question:

What is the Government of Canada doing to support the development of high-speed internet in rural and remote areas?

Key messages:

• High-speed Internet access is a necessity for all Canadians, no matter where they live — including to telework, to access on-line medicine and for distance learning. These unprecedented times have reinforced this need.
• The Government of Canada has made up to $6 billion available to support the building of rural and remote Internet infrastructure so that these communities can succeed in the digital age.
• The Government is working hard to ensure that rural Canadians have access to high-speed Internet.

Supplementary messages:

• The Government has set an ambitious target of connecting 100 per cent of Canadian homes and businesses to high speed Internet by 2030, no matter where they are.
• Projects funded under the Connect to Innovate program will bring new or improved high-speed access to over 975 rural and remote communities, including 190 Indigenous communities.
• The Government will soon be launching the $1 billion Universal Broadband Fund (UBF), which will support whatever network infrastructure is needed to best meet rural and remote connectivity needs.
• The Government is partnering with Telesat by investing up to $600 million to secure Low Earth Orbit satellite capacity over Canada to reach the most remote communities.
• The CRTC has established a $750 million fund to help provide broadband and mobile services to underserved areas.
• Other federal organizations, including Infrastructure Canada, the Canada Infrastructure Bank, and Indigenous Services Canada, also have funding available for high-speed Internet investments.

Background:

Universal Broadband Fund:

In Budget 2019, the government set a national target for 95 per cent of Canadian homes and businesses to 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.

ISED has conducted 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, which will will support whatever network infrastructure is needed to best meet rural and remote connectivity needs.

Connect to Innovate:

Announced in Budget 2016, Connect to Innovate is primarily focused on the construction of new backbone infrastructure (digital highways that move large amounts of data in and out of communities at high speeds) to connect institutions like schools, hospitals, First Nation band offices and libraries, and to improve residential and business Internet services.

It is anticipated that many CTI projects will be completed and start coming online in 2020.

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.

Telesat LEO Satellites:

The government has partnered with Telesat and invested up to $600 million to secure Low Earth Orbit satellite capacity over Canada to reach the most remote communities. These satellites will provide high-bandwidth, low-latency broadband internet coverage to rural and remote regions of Canada, including the North.

Preparation and approvals:
SCMS contact: Tim O'Connor, Manager, 613-294-7639
SCMS approval: Vicky Eatrides, ADM, 613-292-4016
Sector approval: Mark Schaan, ADM, SIPS, 613-790-7126

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. Through this program, Export Development Canada and the Business Development Bank of Canada will provide critical support to businesses that have been adversely affected by COVID-19 to help cover costs and prepare for when the pandemic is over.
• The Canada Emergency Business Account 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 25% will be forgiven.
• The government also announced over $1 billion for additional targeted measures to help small businesses, including innovative businesses and young entrepreneurs. These will be available through the regional development agencies, the National Research Council of Canada and Futurpreneur Canada.
• The Canada Emergency Commercial Rent Assistance program is being introduced to ensure that tenants and landlords don't have to worry during 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 more than $65 billion in 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 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 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 $6.25 million (80% guaranteed by BDC) through the program.

The EDC New Loan Guarantee and BDC co-lending program for SMEs are additive, meaning a firm could access up to $12.5 million in credit between the two.

• Canada Emergency Commercial Rent Assistance
  • The government also intends to introduce the Canada Emergency Commercial Rent Assistance (CECRA) program to provide 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.
  • Implementation of the program will require a partnership with provincial and territorial governments who are responsible for property owner-tenant relationships.

Other targeted measures:

• Additional support for businesses was announced on April 17:
  • $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.

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.

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

Broadband and Indigenous communities

Question:

What is the Government of Canada doing to connect more Indigenous communities to high-speed broadband networks?

Key messages:

• Canadians know that high-speed Internet access is no longer a luxury — it is necessary for all Canadians, including Indigenous Canadians — and is investing accordingly.
• For example, the Connect to Innovate program is investing $585 million to connect over 975 communities, 190 of which are Indigenous, to high-speed broadband networks.
• Further, under Connect to Innovate, approximately 1/3 of funding has been committed to Indigenous projects and proponents — ensuring Indigenous communities and companies are able to significantly shape connectivity for themselves.
• Our investments in projects that impact Indigenous communities take into consideration things like local employment benefits during the construction of projects and cost of service to be offered.
• We are building on this progress and continuing to engage with Indigenous communities to take their needs and priorities into account as we develop the upcoming Universal Broadband Fund.
• Improved connectivity means that Indigenous communities will have access to online learning and job training, healthcare, social and cultural services, and opportunities for entrepreneurship.

Background:

• According to the CRTC's 2019 Communications Monitoring Report, only 31.3% of First Nations Reserves have access to high-speed Internet at a speed of 50/10 Mbps, comparted to 97.7% of urban households and 40.8% of rural households.
• In Budget 2019, the Government set a universal target for 95% of Canadian homes and businesses to have access to speeds of at least 50/10 Megabits per second (Mbps) by 2026, and all Canadians by 2030, no matter where they are located in the country.
• To help achieve this objective, Budget 2019 announced $1.7 billion over 13 years for new broadband initiatives. This includes a new $1 billion program, the Universal Broadband Fund; securing new, low-latency low Earth orbit (LEO) satellite capacity for Canada's most remote communities; and additional funding for the Connect to Innovate (CTI) program.
• These measures will build on existing collaboration with stakeholders and leverage complimentary broadband initiatives administered by the CRTC, Infrastructure Canada, Canada Infrastructure Bank, Indigenous Services Canada, and Provincial/Territorial governments.
• ISED has conducted targeted engagement with stakeholders including Internet service providers, municipal associations, provinces and territories, and Indigenous groups to help design the UBF.
• As part of this engagement, ISED is meeting with national Indigenous organizations, Indigenous companies, and Indigenous communities to ensure the Universal Broadband Fund respond to the unique needs of Indigenous peoples.
• The UBF will also provide enhanced pathfinder services that will help applicants that need additional support, including Indigenous groups, to develop their projects, build partnerships, and find sources of funding.
• The Universal Broadband Fund will be launched in the coming months.

Supplementary key messages about the speed of CTI projects or status of particular projects:

• I understand that some CTI projects have experienced delays, but most are well underway and many communities will be connected in 2020.
• These are typically multi-year infrastructure projects that experience common delays due to things like weather, equipment procurement, and permits.
• We are working closely with our CTI recipients to resolve project delays and ensure they have the flexibility to complete their networks.

Preparation and approvals:
Sector contact (Director-level or above): Krista Campbell, STS, Connected Canada Branch
SCMS contact: Martin Agard, Communications and Marketing Branch, 613-292-0413

COVID-19 response: Indigenous tourism

Question:

What support has been provided to the Indigenous tourism industry (ITAC)?

Key messages:

• Indigenous tourism is an important part of our economy and advances reconciliation with Indigenous Canadians.
• In 2018, Indigenous tourism generated over $1.8 billion in revenue and 40,000 jobs.
• Tourism was one of the earliest sectors affected by this pandemic and it is expected to face a slow recovery.
• Indigenous businesses face unique challenges in this regard, given that this industry is relatively new and more vulnerable to shocks.
• The Indigenous Tourism Association of Canada tells me that a quarter of Indigenous tourism businesses could close and 12,000 people could lose their jobs as a result of the pandemic.
• Recently, the Government announced two measures to provide support to indigenous businesses:
  • First, $306.8 million for Indigenous SMEs through Aboriginal Financial Institutions. This funding will help 6,000 Indigenous-owned businesses.
  • Second, the Regional Relief and Recovery Fund provides $962 million to support businesses and organizations dealing with the impacts of COVID-19.
• I will continue to work with Indigenous leaders to identify how we can adapt our responses to better meet the needs of Indigenous communities and their tourism businesses.

Background:

In 2018, Indigenous tourism generated $1.8 billion in revenue and 41,153 jobs. The Indigenous Tourism Association of Canada (ITAC) anticipates that that a quarter of the country's 1,900 Indigenous tourism businesses will close, with more than a quarter of the subsector's employees — 12,000 people — losing their jobs.

On April 8, 2020, Keith Henry, President and CEO of ITAC appeared before the Parliamentary Finance Committee on the Government's Response to COVID-19. Mr. Henry outlined that ITAC's members could not access the Government's credit measures, because traditional institutions view Indigenous businesses as high risk and therefore have declined their applications for loans or access to credit.

ITAC estimates that it needs $16 million for its Stimulus Development Fund to address basic operational needs and cash flow for businesses from May to September. This would support 640 Indigenous businesses (with loans or grants of up to $25,000), to maintain jobs, diversify revenue streams and strengthen business offerings, targeting:

• 140 export ready businesses ($3.5M): strongest; international market
• 400 market ready businesses ($10M): mid-tier; Canada & US market
• 100 visitor ready businesses ($2.5M): new entrants; regional market

ITAC has re-allocated $1.175M from their current approved funding to support this Fund, but is looking to the private sector, provincial government partners, and the federal government for further financial support.

Indigenous tourism businesses have received some relief thanks largely to COVID-19 relief measures announced in mid-April.

On April 17, 2020 Prime Minister Justin Trudeau announced $962 million for the Regional Relief and Recovery Fund which includes:

• $675 million in support to SMEs that are unable to access the government's existing COVID-19 support measures, through Canada's Regional Development Agencies
• $287 million in capital to support rural businesses and communities, through the Community Futures Network

On April 18, the Prime Minister announced up to $306.8 million in funding to help Indigenous SMEs and to support the Aboriginal Financial Institutions that offer financing to these businesses. The funding will allow for short-term, interest-free loans and non-repayable contributions through Aboriginal Financial Institutions, These measures will help 6,000 Indigenous-owned businesses.

Through Indigenous Services Canada (ISC), the Government has invested $8.6 million over 5 years to build a partnership with ITAC. Strengthening this existing support would build on this relationship and help ITAC's 1900 members receive support quickly and effectively. For 2020-21, ITAC's allocation is $3.1M.

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:

9. 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.
10. Principal payments postponed for up to six months for existing clients. Apply through their account manager. (BDC).
11. Income tax payments postponed until August 31, 2020, for income from March 18 to September 2020. Applies to balances and instalments. (CRA).
12. Suspension of post-assessment GST/HST or income tax audits until mid-April. (CRA).
13. Deferral of all GST/HST payments and customs duties owed for imports until the end of June 2020. (CRA).
14. Three-month moratorium on client payments as of April 1. (CED).
15. Easing of payment arrangements (CRA).
16. CanExport — Program adjustments and relaxation of terms (GAC).
17. Accelerated payments under the Canada Periodical Fund to provide financial assistance for Canadian magazines and periodicals (2020–2021) (PCH).
18. $30 million — Waiver of Part I licence fees by broadcasters for the 2020–2021 fiscal year (CRTC).

Hiring Support:

19. 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).

20. 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).

21. $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:

22. COVID-19 solution projects by innovation superclusters will be prioritized and facilitated. (ISED).
23. $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:
    • Companies incorporated in Canada that wish to offer their products;
    • Companies incorporated in Canada that wish to use their technology in order to fight COVID-19;
    • Detection, diagnosis, medication, vaccine or digital health researchers.
    
    

    Join the Supercluster (free). (NGen).

24. $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).
25. 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:

26. Directory of medical supply manufacturers and businesses — Register online: Information shared with various federal departments, provinces and territories. (ISED).

27. 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 businesses:

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 1800367-5693, 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:

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

Canada Emergency Response Benefit:

8. 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:

   • Workers who live in Canada and are at least 15 years old;
   • Workers who stopped working because of COVID-19 and did not voluntarily quit their jobs;
   • Workers who earn or expect to earn up to $1,000 per month;
   • Workers who recently exhausted their regular EI benefits and are unable to find a job or return to work because of COVID-19;
   • 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.

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 14day 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:

5. Mandatory pre-boarding health screening for all passengers. Travellers who present symptoms will be prevented from boarding. (March 18). [TC].
6. 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:

7. 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:

8. Rent waivers for the country's airports. Effective from March to December 2020. (TC).
9. Suspension of visitor services in national parks (March 19) and vehicle access to Parks Canada places (March 24). [PC].
10. 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]:
   • Pharmaceutical drugs: OCT_BEC_Enquiries_Enquetes@hc-sc.gc.ca
   • Tests using biologics and radiopharmaceuticals: hc.bgtd.dgo.enquiries.sc@canada.ca
   • Natural health products: NHPD-CTA.DEC-DPSN@canada.ca
   • Investigational testing of medical devices: hc.meddevices-instrumentsmed.sc@canada.ca
6. $305 million — Support Fund to procure medical devices for Indigenous and Inuit communities and First Nations (ISC).

Research and development:

7. $275 million for research and development: Antivirals, vaccine development and support for clinical trials. (HC).
8. $27 million to fund coronavirus research in Canada (HC).
9. $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.
10. $15 million — Expand biomanufacturing 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:

11. $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:

12. $50 million for COVID-19 communications and public education efforts (PHAC).
13. 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).
14. Canadians are advised to wear non-surgical masks when they leave their homes, particularly in situations where physical distancing may not always be possible.
15. 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 so they can hire targeted expertise 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.
• With regard to loan deferrals: As of April 21, ACOA deferred payments totalling $15.4 million for 1005 commercial clients throughout Atlantic Canada.

Canadian Northern 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 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 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 $11.5 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 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 April 21, FedNor reported 404 COVID-related impacts on the regional economy, including 135 businesses reporting reduced sales, revenues or bookings; 115 reporting cancellations, 118 temporary closures and 62 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):

• With over 30 years of experience, WD has the expertise and relationships needed to support western Canadians through times of economic disruption.

• WD is actively engaging with hundreds of clients and western stakeholders to adapt our programs and provide pathfinding to other business and community supports during the COVID-19 crisis.

  For example:

  • WD has simplified the payment process and reduced reporting requirements to provide funds more quickly to recipients who desperately need it.
  • This includes our eligible not-for-profits, for-profits, and Western Canada Business Services Network clients.
  • This change alone can assist 855 projects that have over $2B in approved WD funding.
  • WD has worked with clients to change the focus of their projects to include funding for other activities if appropriate. Covering these costs improves the short-term liquidity of small and medium size businesses and helps them better weather the economic impacts of Covid-19.
  • To assist SMEs who continue to face cash flow problems, WD is now allowing payment in the form of advances. Advances allow clients to pay for project costs upfront and minimize the burden on clients who would otherwise have to first incur these costs and then seek re-imbursement.
• In addition, WD will implement the acceleration of funding to projects that have potential to generate immediate strong economic benefits. The acceleration of funding will assist businesses with additional costs related Covid-19.
• We will continue to take action, like the newly established B.C. Business COVID-19 Support Service, that responds to our message to western Canadians — we're here for you now with concrete measures, we'll be here for you in the days and weeks to come and we'll get through this together.

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 is implementing a number of measures that will help its clients manage costs and provide them with more than $11.5 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

WD:

Between March 11 and April 14, WD has tracked and responded to over 700 inquiries from clients or stakeholders regarding COVID-19 impacts.

The majority of these calls or emails are from western Canadian businesses with questions about WD and other federal supports.

WD is also actively reaching out to existing clients to discuss our new program flexibilities.

WD's regional offices are engaging western Canadians to better understand their needs. For example, WD partnered with Alberta Economic Development, Trade, and Tourism in late March to host four stakeholder roundtables.

Minister Joly has participated in industry events in the West such as the Indigenous Tourism Association of Canada discussion on March 24 and the Destination Canada call-in on April 1.

Looking forward — Continuous support to Canadians during the COVID-19 pandemic

Question:

What will the 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.

ACOA:

• ACOA will allocate approximately $66 million over the next two years 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 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 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 is helping businesses with cash flow issues so they can hire targeted expertise 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.

CanNor:

• CanNor has approximately $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 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.

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-Q 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-Q 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.

FedDev:

• The Agency is preparing to deliver the Regional Relief and Recovery Fund (RRRF) that will support businesses facing hardship due to a lack of liquidity.

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.

WD:

• The RRRF will come into effect in the coming weeks. Right now, we are putting in place the right mechanisms and making further adjustments to our programs.
• The Fund will help to:
  • mitigate the financial pressures experienced by businesses and organizations to allow them to continue their operations, including paying their employees;
  • support projects by businesses, organizations and communities to prepare now for a successful recovery.
• In addition to my ongoing engagement with western Canadians via regional chamber of commerce roundtables and small business discussions, my officials are actively monitoring the impacts of Covid-19 on SMEs and regional economies and tailoring support according to the regional realities.

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 nine Community Futures Development Corporations: Six in the NWT and three 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.