In response to the difficulties faced by the hardest hit businesses due to COVID-19, BDC in conjunction with the Government of Canada, has developed the Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee. This program will provide low-interest loans ranging from $25,000 to $1,000,000 to cover operational cash flow needs.
To qualify, businesses must:
- Be Canadian based.
- Have been financially stable and viable pre-COVID.
- Have received payments either from the Canadian Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by demonstrating a minimum 50% revenue decline for at least 3 months within the last 8-month period prior to the HASCAP application.
- The loan will be used to continue or resume operations.
- The loan cannot be used to pay or refinance existing debts.
- Minimum risk ratings will apply, varying by size of new loan.
- You can apply for a loan under the HASCAP Guarantee for each legal entity you own, up to a maximum combined amount of $6.25 million (all legal entities combined).
- Other conditions may also apply.
Please see the BDC website for more details, including all eligibility requirements: https://www.bdc.ca/en/special-support/hascap?ref=shorturl-hascap
HASCAP will be available until June 30, 2021. If you think this program would be the right opportunity for your business, you are encouraged to apply.
Applications are now open for the new Ontario Small Business Support Grant. This grant is designed to help small businesses that are required to close or significantly restrict services under the Province wide Shutdown that came into effect December 26, 2020.
Up to $20,000 is available in the form of a grant to help cover the decrease in revenue because of the Shutdown. Businesses must be able to demonstrate that they had experienced a revenue decline of at least 20% when comparing monthly revenue in April 2019 and April 2020. Businesses established after April 2019 may also be eligible assuming they meet the other criteria.
To receive the grant, the business must meet all of the following eligibility requirements:
- They were required to close or restrict services subject to the Province wide Shutdown effective 12:01 a.m. on December 26, 2020.
- Have fewer than 100 employees at the enterprise level.
- Have experienced a minimum 20 per cent revenue decline when comparing April 2020 to April 2019 revenues.
Businesses that are not eligible include those who were already required to close prior to the introduction of the modified Stage 2 measures (October 10, 2020) or essential businesses permitted to operate with capacity restrictions.
In order to apply you will need a CRA business number for your business, information about the revenue decline as well as the number of employees in the business.
For more information please visit the government of Ontario website: https://www.ontario.ca/page/businesses-get-help-covid-19-costs?fbclid=IwAR0h9CxnbUfE0CtEvslNYgUh5h59QXJePRqSIVyg1jc0hJOdT4LDUqMrbaA#section-0
To apply: https://www.app.grants.gov.on.ca/msrf/#/
Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) Application Deadlines
The CEWS and CERS application deadlines are quickly approaching. The deadline for all CEWS and CERS applications is the later of January 31, 2021 and 180 days after the end of the claim period.
For CEWS applications, this means that applications for claim periods 1, 2, 3, 4 and 5 will be due no later than January 31, 2021. For CEWS claim period 6, which would cover the 4-week claim period from August 2 to August 29, 2020, the deadline to apply would be February 25, 2021 (180 days after the end of the claim period).
For CERS applications, this means that applications for claim period 1 (September 27 to October 24, 2020) is due no later than April 22, 2021 (180 days after the end of the claim period).
If you believe your business qualifies for either the CEWS and/or the CERS and have not yet applied for some or all of the earlier claim periods, please contact our office to ensure your application is filed by the application deadline.
From all of us at Graham Scott Enns, we want to wish you and yours a safe and happy holiday!
Although 2020 has been a challenge for all of us, may this holiday season bring you connection
with the ones you love and hope for what’s to come in the new year. Now more than ever, we
hope the spirit of the holidays helps you find joy in the things that matter most.
Sending our warmest wishes for a safe and healthy Happy New Year!
Starting out in our Aylmer office in January 2012 and transferring to the St. Thomas branch in July 2017 to become a part of the Tax Group, Tina is on a level all her own. When asked about working with the GSE family she says,
“The partners at GSE are very kind and compassionate. Everyone cares for their clients, staff, and community.
After spending many years at a national firm, I am very happy with the decision to join GSE and look forward to furthering my career here.”
As one of our management team, Tina provides tax services, compliance services and is part of the team that develops and supports our staff in many unique ways. We are so lucky to have her here!
Courtney has been with GSE since March 2016. In her time with us she worked on many different types of engagements and provided support to many of our clients.
In her own words, working for GSE,
“Has been amazing. I feel proud to be part of the team at GSE and provide our clients with excellent service.”
Courtney has a fierce dedication to her clients and consistently strives for new heights while inspiring the multiple staff members she mentors.
We are so happy to have Courtney as part of the team here at GSE and we look forward to her being part of the team for many years to come!
Many of the original Covid-19 government benefit programs have changed over the past few months to allow for easier access for many businesses. As we continue to weather the pandemic together in our community, it is important to keep abreast of these changes and to ensure businesses can access these programs fully.
For our valued community we have put together a summary page outlining a few of the key COVID-19 Government Benefit Programs including some related forms and deadlines to help with that goal.
Should you have specific questions on any of the programs, or need assistance in completing any forms or applications, please do not hesitate to contact our office.
Government Benefit Programs November Update
The 10% Temporary Wage Subsidy is a program introduced by the federal government to provide financial support to business during the COVID-19 pandemic. It allows employers to reduce the income tax portion of their payroll remittances by 10% of the gross wages paid to employees. The subsidy is limited to $1,375 per employee and $25,000 per employer. The program covers remuneration paid to employees from March 18, 2020 to June 19, 2020.
A new form has been released called Form PD27, 10% Temporary Wage Subsidy Self-Identification Form for Employers. Employers that have applied for this program or the Canada Emergency Wage Subsidy program are required to complete this form so that the CRA can reconcile their payroll remittances. There are two ways to complete this form:
- Complete the form on My Business Account online
- Complete the PDF and submit via
- My Business Account
- Mail or fax to any National Verification and Collections Centre
- The closest centre for most Ontario residents is:
4695 Shawinigan-Sud Boulevard
Shawinigan-Sud QC G9P 5H9
For more information on completing the Form PD27, please visit https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-reporting.html.
Applications are opening soon for small businesses to ensure they have what they need to cover their operational costs under the current circumstances as the province begins to reopen. Small businesses and not-for-profits can apply trough the Canada Emergency Business Account (CEBA) for an interest free loan up to $40,000 to assist with operating costs while in periods of decreased revenue as a direct result of the COVID-19 pandemic.
To qualify for CEBA the small business or not-for-profit must meet the following criteria:
- Be a tax registered Canadian operating business in operations as of March 1, 2020
- Total employment income paid in 2019 is between $20,000 and $1,500,000
- The borrower has an active business account with Lender of the loan, who is also their primary financial institution
To apply, small businesses and not-for-profits should contact their financial institutions directly, and can take a look at the website below for a list of participating financial institutions in the CEBA program.
The CEBA funds can be used on:
- Any operating expenses that cannot be deferred, this includes but it not limited to, payroll, rent, utilities, debt payments and property taxes.
- However, they cannot use the debt for refinancing of current debt, payment of dividends or for increase in management compensation
Please see the CEBA Website for more information: https://ceba-cuec.ca/
The CRA has provided some additional guidance regarding the personal tax filing deadline.
As previously announced, individuals who previously had a personal income tax filing deadline of April 30, 2020 has had their deadline extended until June 1, 2020. Penalties and interest will not be charged if payments are made by the extended deadline of September 1, 2020.
It is important to note that if you or your spouse are self-employed, you still have until June 15, 2020 to file your taxes. In both of these situations your payment deadline has been extended to September 1, 2020.
This payment extension also applies to installments typically due June 15, 2020, and no interest or penalties will be charged for this payment if it is made before the extended deadline of September 1, 2020.
It is still recommended that individuals file their personal tax return even though there will be no interest or penalties for late filing as it could impact your credit payments including the GST credit. You will still continue to receive payments based off of your 2018 return, but to ensure that you will receive the right amounts it is important to file by the deadline. This also applies if you are entitled to a refund, filing on time will ensure that you get your refund as soon as possible.
For more information please see the CRA website for updated information and additional news: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2020/filing-2019-taxes-covid19-crisis.html?utm_source=mediaroom&utm_medium=eml