Canada’s COVID-19 Economic Response Plan Update

Canada’s COVID-19 Economic Response Plan Update

Canada Emergency Wage Subsidy (CEWS)

Changes to CEWS as of November 19, 2020 (Bill C-9):

  • The subsidy is extended to June 2021.
  • The maximum subsidy rate for periods 8 to 10 will remain at 65% (40% base rate + 25% top-up).
  • Beginning in period 8, the top-up rate and base rate are now calculated using the same one-month revenue drop.
    • For periods 8 to 10, use the new top-up calculation or the previous 3-month average drop, whichever works in your favor.
  • The deadline to apply is January 31, 2021, or 180 days after the end of the claim period, whichever comes later.
  • Starting in period 9, the calculation for employees on leave with pay now aligns better with EI benefits.
  • You can now calculate pre-crisis pay (baseline remuneration) for employees who were on certain kinds of leave, retroactive to period 5.
  • The Canada Emergency Rent Subsidy (CERS) has been introduced for businesses, non-profits, and charities.

Canada Emergency Business Account (CEBA) interest-free loans

  • The Canada Emergency Business Account (CEBA) provides interest-free, partially forgivable loans of up to $60,000 to small businesses and not-for-profits that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs such as rent, utilities, insurance, taxes, and wages.
  • We have recently expanded CEBA to include an additional interest-free $20,000 loan, 50% of which would be forgivable if repaid by December 31, 2022.
  • This means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid by December 31, 2022.
  • Business owners can apply for support until March 31, 2021, through their banks and credit unions.

Canada Recovery Benefits (CRB)

The CRB provides $500 per week, for up to 26 weeks, for workers who have stopped working or had their income reduced by at least 50% due to COVID-19 and who are not eligible for Employment Insurance (EI).

Canada Recovery Sickness Benefit (CRSB)
The CRSB provides $500 per week for up to a maximum of two weeks, for workers who:

  • Are unable to work for at least 50% of the week because they contracted COVID-19.
  • Are self-isolated for reasons related to COVID-19.
  • Have underlying conditions, are undergoing treatments, or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government, or public health authority, would make them more susceptible to COVID-19.

Canada Recovery Caregiving Benefit (CRCB)
The CRCB provides $500 per week, for up to 26 weeks per household for workers:

  • Unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares, or care facilities are closed due to COVID-19.
  • Because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.

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