Canadian COVID-19 Update | May 19 & 20
May 20, 2020
TIAC’s Advocacy Update
- Today, TIAC’s Vice President Stakeholder Relations and Business Development participated in a call hosted by the Canadian Chamber of Commerce, where he delivered remarks on the newly announced RRRF program.
- Yesterday, the Prime Minister announced changes to the Canada Emergency Business Account (CEBA) which gives small businesses interest-free loans of up to $40,000, of which 25% (up to $10,000) will be forgiven if the full sum is repaid by December 31, 2022
- This announcement confirms that sole owner-operators, businesses relying on contracts, and those that are family owned and pay employees by dividends now qualify for the loan program
- TIAC hopes these changes will help many tourism businesses who have shared with us their struggles qualifying for CEBA and other programs due to these issues. We encourage businesses who fall into these categories to talk to their financial institutions to access funding. And as always, we urge stakeholders who are encountering difficulty accessing the fund to share that information with us as soon as possible.
- Yesterday, TIAC’s President and CEO participated on a bi-weekly call with the Associate Deputy Minister of ISED where TIAC continued to report on early indications that many businesses may not qualify for the new RDA funds announced late last week, including not-for-profits and Destination Marketing Organizations. TIAC reiterated these concerns again today with Minister Joly’s office and will continue to work with government to fill gaps within this program.
- Today, the Canada Revenue Agency (CRA) hosted an interactive question and answer session for small and medium businesses on the Canada Emergency Wage Subsidy (CEWS). The session provided responses to general questions about the CEWS as well as resources needed to apply.
- Our partners at Tourism HR Canada have launched a new Recovery Toolkit initiative for the Canadian tourism sector.
- Please find more information visit tourismrecovery.ca and relancetourisme.ca.
- Yesterday, the Prime Minister announced additional measures that directly impact Canada’s tourism industry. The first, was that closure of the Canada/USA border will be extended by another 30 days.
- The current agreement was to expire on May 21, and the extension means the border will be closed until June 21, 2020.
- Under the closure, no leisure or tourism travel is permitted between the two countries. There has been no indication whether the border will remain closed beyond the June 21, 2020 extension.
- As mentioned above, the Prime Minister also announced the newly expanded eligibility for the Canada Emergency Business Account (CEBA) that provides interest-free loans of up to $40,000, of which 25% (up to $10,000) will be forgiven if the full sum is repaid by December 31, 2022.
- The expanded eligibility criteria will now include sole owner-operators, businesses relying on contracts, and those that are family owned and pay employees by dividends.
- Today, Minister of Finance Bill Morneau and Minister of Innovation, Science and Industry Navdeep Bains announced that applications for the Large Employer Emergency Financing Facility (LEEFF) are now open. LEEFF is a program for Canada’s larger employers that need access to bridge financing beyond what is available via the Business Credit Availability Program (BCAP).
- To access funding through LEEFF, employers must have $300 million or more in annual revenues and must be seeking a loan over $60 million. The Canada Development Investment Corporation (CDEV) has created a new subsidiary, the Canada Enterprise Emergency Funding Corporation (CEEFC), to administer LEEFF in coordination with Innovation, Science and Economic Development Canada (ISED) and Finance Canada.
- The Prime Minister also announced that the Canada Emergency Commercial Rent Assistance (CECRA) program will be open for applications starting May 25 via the Canada Mortgage and Housing Corporation’s website. CECRA will provide forgivable loans to landlords that covers 50% of their tenants rent, with tenants covering 25% and landlords absorbing 25%.