Like many of you, I am feeling the consequences of the work from home directives. I am as of now, very lucky not to be infected (at least I don’t have any symptoms), nor is any of my family and for that, I am very thankful. I will do my part and stay inside until further notice.
As a business owner I understand that we must all do our share and change our ways to help protect ourselves and other Canadians. As a financial advisor I also understand that bills must be paid and if you are not on salary and rely on leaving your home to earn your living, this can be an especially stressful time. I know it is for me and other business owners who are friends, clients and often both.
Without the ability to earn an income, we all worry we could run out of money for groceries, mortgages/rent, childcare and medications.
Because of that the Government of Canada announced a Financial Aid package to help get Canadians through the COVID-19 Pandemic. Many of my friends and clients have asked what the package looks like, so I thought I would post what I know so folks can see for themselves.
This is a very early draft of notes I have taken, and although it is like drinking from a fire hose, we at least can see the broad strokes of what the plan is going to look like. I am sure there will be many changes and/or modifications as we move through this unprecedented time.
Here is what I understand that the package will cover:
$10B in Business Credit Availability Program (This was the first step announced last week)
Today: $27B in direct support to Canadian workers and businesses and $55B to meet liquidity needs of Canadian businesses and households through tax deferrals for a total of $82B in new money in addition to the $10B last week.
Emergency care benefit – 14 weeks of an amount comparable EI Benefits – If you are not entitled to sick leave, you fail to qualify for EI you and are placed in quarantine or you have to self isolate or care for someone who is self-isolating or infected with COVID-19.
Emergency Support Benefit – If you lose your job and do not qualify for EI; if you are self-employed and have to cease business activity because of illness.
Temporary Wage Subsidy – For employers that have to make payroll a 10% of salary will be paid to employees for up to 3 months to help employers keep workers on the payroll
Income Tax Filing for 2019 tax year – Filing delayed until June 1st ,2020 and if you owe taxes, payment is delayed until Aug 31st ,2020.
Parents with young kids – School closures have caused additional child-care responsibilities, so the Government will temporarily boost Canada Childcare Benefit for the next few months.
Lower income – For adults who are eligible for the GST credit you will be entitled to up to $300 with an additional $150 for every child.
For students – 6 months Interest-free moratorium on Canada Student Loans.
For Homeless people – Doubling reaching home program
For those that are faced with domestic gender-based violence – There will be a boost for funding for shelter that provide sanctuary when self isolating is not an option.
Indigenous – An immediate needs community support fund for remote communities.
Additional Measures for Businesses:
- Export development Canada will provide support to Canadian companies affected by the Global situation.
- Farmers and primary food producers will get a boost via Farm Credit Canada
- Canada Account will be used for industries more affected than others and will be followed up upon.
- Finance Minister Morneau has received commitment from Canadian banks to support businesses and people affected by COVID-19 (lending and extending credit).
- The Canada US border is closed to all non-essential travel, but commerce and trade is not affected.
I am sure that there will be more info to come as this is an early snapshot but it gives us a quick-reference sheet to look at, and I hope it is helpful to you or someone you know or do business with.
The Government has indicated that funds will begin to flow within “the next few weeks”.
For more information please visit: https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection.html
As a Canadian I want to do a little bit more to help my neighbors, and those that are still working to get us through this difficult period like the overwhelmed grocers, postal workers, pharmacists, first responders and of course all of the public health workers on the front lines. Thank You all.
Most importantly, my thoughts are with those affected with this terrible virus and their families. I wish you a speedy recovery to full health.
Kevin-Barry Henry.Buy My Book
THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.