Update on Government measures of support to businesses and individuals

Novel Coronavirus
(COVID-19) Outbreak

 The Canadian Camping and RV Council is monitoring developments around COVID-19 closely and is working hard to bring you the latest developments.  What has become clear over the past few weeks is that the situation is evolving daily and having a significant impact on the Canadian RV and Camping Industry. Understanding that our businesses are seeking the latest data and guidelines to support your operations, we have aggregated some of the best data available and will be updating materials regularly during this period.

Support Measures For Businesses

Deferral of Corporate Income Tax Payments

The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020.  This relief would apply to tax balances due, as well as instalments. No interest or penalties will accumulate on these amounts during this period. This measure, to be implemented immediately, frees up to $55 billion in temporary tax relief, resulting in businesses having more money available during this period.

Mortgage Payment Deferral

The six big banks are offering up to a six-month payment deferral for mortgages and the opportunity for relief on other credit products. Priority will be given to small business owners on a case-by-case basis, with strong consideration for those demonstrating financial need.

We encourage you to inquire with your banking institution to determine if you qualify. 

Here are the helplines for each institution, which they have bolstered with more support:

BMO: 1- 877-788-1923
CIBC: 1-877-454-9030
RBC: 1-800-769-2511
Scotiabank: 1-833-315-4357
TD: 1-888-730-0075
National Bank of Canada: 1‑844‑394‑4494

Business Credit Availability Program (BCAP)

This program will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses (as defined by 499 employees or less). Implemented immediately, this money should be available for our Private Campgrounds.

 Released, new relief measures for qualified businesses include:

• Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses;
• Postponement of payments for up to six months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less; and
• Reduced rates on new eligible loans. Private Campgrounds should also qualify for up to $100k in as little as 48 hours from BDC.
• The direct online application can be found here. 

 10% Wage Subsidy for Small Business Employers

To support businesses that are facing revenue losses and help them keep their workers, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.

Support Measures For Individuals

For Individuals: Canada Emergency Response Benefit (CERB)

Details: 

• CERB will be backdated to March 15, 2020
• CEBB is a taxable benefit which will provide $2,000 a month to be paid in four-week instalments for up to 16 weeks.

Eligibility: 

• CERB includes workers who are employed but are not receiving income because of disruptions to their work situation due to COVID-19. This measure allows our industry to not have to resort to lay-offs and keep furloughed employees with the company and ready to quickly return to work once our industry recovers.
• The CERB would also cover those without employment or self-employment income for at least 14 consecutive days in a four-week period for reasons related to COVID-19, including if they lost their job, are sick or in quarantine, or need to care for a child or a family member.
• Temporary foreign workers who do not qualify for EI, but who meet any of the above criteria, are also eligible for this benefit.

 Qualification:

• To qualify, applicants must have had $5,000 in 2019 or year preceding in employment income, self-employment income, or maternity or parental leave benefits and/or similar benefits paid in Quebec under the Quebec Parental Insurance Plan (QPIP).
• The online application is expected to be available April 6 until October 3, 2020. Benefits should be delivered 10 days after submission of the application form. Applicants can apply in one of these three ways:
  • by accessing it on your CRA MyAccount secure portal;
  • by accessing it from your secure My Service Canada Account;
  • or by calling a tollfree number (not yet available) equipped with an automated application process.

 Information for those that have already applied for EI benefits:

• If a claimant has already applied for EI they do not need to reapply for the CERB. The claim will be automatically moved over to the CERB, and benefits paid from this program first. If still unemployed after October 3, 2020, claimants can use their hours to apply for EI benefits after this date.
• Additionally, those who are already receiving EI benefits as of today would continue to receive their benefits and should not apply to the CERB. If the EI benefits end before October 3rd, 2020, and the claimant is still unable to return to work, they can apply to the CERB once the EI benefits run out.
• EI eligible employees who have recently lost their job can continue to apply for EI Update on Government measures of support to businesses and individuals.
• Employers should also note to continue to file EI Records of Employment (ROEs) for employees correctly for the reported circumstances (e.g. quarantine/sickness, shortage of work).

 Measures to expedite the EI process:

• The one week waiting period has been waived for claimants who are quarantined so they can be paid for the first week of their claim. There is a newly established toll-free telephone number to assist those who would like to waive the one week waiting period: 1-833-381-2725.
• People claiming EI due to quarantine will not have to provide a medical certificate.
• People who cannot complete their claim for EI sickness benefits due to quarantine may apply later and have their EI claim backdated to cover the period of delay.

For Individuals: Employment Insurance

  Information for those that have already applied for EI benefits:

• If a claimant has already applied for EI they do not need to reapply for the CERB. The claim will be automatically moved over to the CERB, and benefits paid from this program first. If still unemployed after October 3, 2020, claimants can use their hours to apply for EI benefits after this date.
• Additionally, those who are already receiving EI benefits as of today would continue to receive their benefits and should not apply to the CERB. If the EI benefits end before October 3rd, 2020, and the claimant is still unable to return to work, they can apply to the CERB once the EI benefits run out.
• EI eligible employees who have recently lost their job can continue to apply for EI Update on Government measures of support to businesses and individuals.
• Employers should also note to continue to file EI Records of Employment (ROEs) for employees correctly for the reported circumstances (e.g. quarantine/sickness, shortage of work).

For Individuals: Other Federal Measures

• Thetax filing deadline is extended for individuals to June 1, 2020.
• Additional assistance to families with children by temporarily increasing Canada Child Benefit paymentsup to $300 per child.
• Government of Canada will provide additional assistance to individuals and families with low and modest incomes with a special top-up payment under the Goods and Services Tax (GST) credit. This will include up to $400 for single adults and $600 for couples.
• Canadian banks have committed to work with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. Canadians who are impacted by COVID-19 and experiencing financial hardship as a result should contact their banking institution regarding flexibility for a mortgage deferral.