Tuesday, April 28, 2020
We know that COVID-19 has had a significant impact on many businesses. To help businesses (and individuals) manage through the pandemic, the federal government has announced a COVID Economic Response Plan, which includes a wage subsidy, access to credit and funding, and income support. The federal and provincial government are working closely to align support for businesses. Provincial programs are intended to “fill the gaps” in federal programs to offer the broadest range of support possible.
For example, the federal Canada Emergency Benefit Account provides interest-free loans of up to $40,000 to businesses with payrolls between $20,000 to $1.5 million. Meanwhile, the provincial Covid-19 Small Business Credit and Support Program provides financing to businesses with payroll under $20,000, including sole owners and dividends owners with no payroll.
With so much information coming at you, it can be a challenge to know what resources are applicable to you. The Province of Nova Scotia’s Business Navigation Service can help you navigate all of the resources and programs that have been announced to date to find the right resources for your business. Contact a navigator to discuss your situation: https://novascotia.ca/regulatoryopportunity/business-navigators.asp . For all of the latest information and updates about COVID-19, visit our Updates and Resources Page. This page will continue to be updated as new resources become available.
Here are some of the programs that have been announced:
COVID-19 Economic Response Plan
Federal support for employers and employees as part of Canada’s COVID-19 Economic Response Plan, includes:
Access to credit
Rent Deferral for Tourism Operators
To help mitigate the impacts of COVID-19 on Canada’s tourism industry, Parks Canada will work with tourism operators in national parks, historic sites, and marine conservation areas to defer payments on commercial leases and licences of occupation without interest until September 1, 2020.
Atlantic Canada Opportunities Agency
The Atlantic Canada Opportunities Agency (ACOA) can help tourism businesses access federal funding programs and offer financial support on a case-by-case basis. ACOA will also be administering the Regional Relief and Recovery Fund. For more information about ACOA programs and support, see https://www.canada.ca/en/atlantic-canada-opportunities/campaigns/covid19.html
*New - Covid-19 Small Business Credit and Support Program
Starting April 29, the Province of Nova Scotia will offer a temporary stream for access to credit, cash grants, and support delivered through participating credit unions. To be eligible, small businesses must have a payroll less than $20,000 in the previous fiscal year and have experienced a decline in revenue from sales of at least 15 per cent in March or at least 30 per cent in April, May or June. Maximum loan amount is $25,000. Upon approval, businesses will receive a grant up to $1,500 as well as a COVID-19 Business Continuity Voucher of up to $1,500 to help hire consultants for advice and support. This new stream will be available until June 30. See https://novascotia.ca/coronavirus/support/#support-for-business
*New - Access to Training and Business Advice
The province is working with post-secondary education partners to deliver education, training and guidance to small businesses. A centralized hub hosted by the Nova Scotia Community College will connect businesses to programs available from post-secondary institutions and other regional organizations. It will be available in early May, but you can get start getting answers now by emailing business@nscc.ca or visiting www.nscc.ca/businesssupport
*New - Canada Emergency Commercial Rent Assistance for Small Business
The federal and provincial governments are partnering to provide commercial rent relief for small businesses that have temporarily ceased operations or experienced a 70 per cent revenue decline due to the COVID-19 pandemic. See: https://www.canada.ca/en/department-finance/economic-response-plan.html
Worker Emergency Bridge Fund
This fund supports people who are self-employed or laid-off who don’t qualify for Employment Insurance. Read more about eligibility requirements and how to apply.
Access Credit and Maintain Cashflow
The provincial government announced a $161 million package for small and medium-sized businesses to help them access credit and maintain cash flow. This first wave of supports includes: