May 20, 2020
Important COVID-19 announcements from federal and provincial governments
In the past few days there have been important announcements and actions from both the federal and provincial governments as they balance necessary safety precautions with the reopening of the economy and assistance for companies and individuals in the coming months.
On Friday, May 15, federal Finance Minister Morneau announced that the Canadian Emergency Wage Subsidy will be extended to August 29 and will encompass more employers and workers.
Yesterday, Prime Minister Trudeau announced expansion of the eligibility criteria for the Canada Emergency Business Account (CEBA) to include more small businesses.
In Ontario the provincial government has initiated Stage 1 of its tiered plan to reopen workplaces, business and our economy.
It is also amending some emergency orders related to outdoor recreational amenities and drive-in religious gatherings while extending all other emergency orders until May 29, 2020.
Also announced is that the current Canada / US border restrictions will remain in place until June 21 and that schools in Ontario will remain closed for the remainder of the school year, reopening in September.
Canadian Emergency Wage Subsidy (CEWS) extended to August 29
The Canada Emergency Wage Subsidy (CEWS) is designed to:
- help businesses keep employees on the payroll
- encourage employers to re-hire workers previously laid off, and
- better position businesses to bounce back following the crisis.
It was passed into law on April 11 to assist companies whose revenues declined by more than 30% during the period from mid-March to the end of May.
On May 11 it was expanded to also help mitigate revenue decline during the month of June, and Minister Morneau has now announced a further 12 week extension, through to August 29, 2020.
Key business and labour representatives will consult with the government over the next month on potential adjustments to the program to incent jobs and growth, including the 30 per cent revenue decline threshold.
More information will be announced soon.
Eligibility for the CEWS will also be extended to the following groups:
- Partnerships that are up to 50-per-cent owned by non-eligible members
- Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible employers
- Registered Canadian Amateur Athletic Associations
- Registered Journalism Organizations; and
- Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.
The full text of the announcement can be found on the Government of Canada website .
Canada Emergency Business Account (CEBA) to include more small businesses.
The Prime Minister announced expanded eligibility criteria for the Canada Emergency Business Account (CEBA). The program will now be available to the following businesses:
- sole proprietors receiving income directly from their businesses
- businesses that rely on contractors, and
- family-owned corporations that pay employees through dividends rather than payroll.
The CEBA provides interest-free loans of up to $40,000 to small businesses facing reduced revenues due to the COVID-19 pandemic. Twenty-five per cent of this loan is forgivable if repaid by December 31, 2022. To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 will need:
- A business operating account at a participating financial institution.
- A Canada Revenue Agency business number.
- To have filed a 2018 or 2019 tax return.
- Eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses include costs such as rent, property taxes, utilities, and insurance.
Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions.
More details, including the launch date for applications under the new criteria, will follow in the days to come. I will keep you informed.
The full text of the announcement can be found on the website of the Prime Minister’s Office.
Ontario extends most emergency orders, amends outdoor recreation emergency orders
On the advice of the Chief Medical Officer of Health, the Ontario government has extended until May 29, 2020 all emergency orders that have been put in place to-date under the Emergency Management and Civil Protection Act.
Effective Tuesday, May 19, 2020, Ontario is amending an emergency order to open some outdoor recreational amenities, including:
- outdoor sports facilities and multi-use fields including:
- baseball diamonds
- soccer fields
- frisbee golf locations
- tennis, platform tennis, table tennis and pickleball courts,
- basketball courts, BMX parks, and skate parks
- off-leash dog areas; and
- outdoor picnic sites, benches and shelters in park and recreational areas.
Remaining closed are:
- Outdoor playgrounds, play structures and equipment
- fitness equipment
- public swimming pools, splash pads and similar outdoor water facilities
In addition, the government has approved an exemption to the emergency order related to gatherings to allow Ontarians to attend drive-in religious gatherings.
The full text of the announcement, with details about individual services, can be found on the Government of Ontario website.
ADDITIONAL RESOURCES
- Learn more about Stage 1 of reopening Ontario.
- See the list of Stage 1 businesses
- Learn more about A Framework for Reopening our Province.
- Find workplace safety guidance documents to prepare for reopening.
- Information and advice to help your business navigate the economy during COVID-19.
- Provide your input on the economic impacts of COVID-19.
- See how your organization can help fight COVID-19.
- Visit Ontario’s website to learn more about how the province continues to protect the people of Ontario from COVID-19.