The Essential Guide To Government Support For N.B. Businesses
The COVID-19 pandemic has hit New Brunswick businesses hard, and both the federal and provincial governments have stepped up with programs to support them.
Huddle has put together a comprehensive list that explains exactly what each program is, whether or not you qualify, and exactly how to use it if you do.
We’ve provided direct links where possible and will keep this page updated as things change.
You can read through the piece in its entirety or click on the sections relevant to your business.
Federal Government Programs
Work Sharing Programs To Help Avoid Layoffs
Help With Mortgage and Credit Payments
Interest-Free Loans for Small Businesses
Financial Help If You’re Self-Employed
Government of New Brunswick Programs
Waiving late penalties on property taxes
Deferred Payments on Government Loans and Fees
New Operating Loans for Business
One-Time Payment For Job Losses
Federal Government Programs
Help paying your employees’ wages
To help small businesses keep their employees working, the government will cover 75 percent of an employer’s payroll if they’ve experienced a decrease in revenue of at least 30 per cent.
The subsidy is available to all businesses no matter their size, and not-for-profit organizations–as long as they pay some kind of wage, salary, or bonus to an employee.
The government will cover 75 percent of the first $58,700 of an employee’s salary, up to $847 per week. The program will be backdated to March 15.
How to use it
The federal government hasn’t yet released details on how to access this subsidy. A Q&A about the program from the CRA is available by clicking here but it’s based on the original subsidy of 10 percent and doesn’t provide up to date information on the new program. We’ll update this section as soon as the federal government announces the details and updates the process online.
More time to pay your taxes
The CRA is giving businesses more time to pay their outstanding taxes by extending the deadline to pay until September 2020.
You will still have to pay your taxes in full once the grace period is over. However, any money you do owe won’t collect interest until the new September deadline.
This relief is for any taxes you would have to pay as of March 18. That means any taxes you still owe the government from previous years don’t apply.
This applies both to businesses and anyone who’s self-employed.
Businesses will also get a break on paying their GST/HST remittances until June 30.
How to use it
You’ll still have to file your income taxes by the usual deadline, but now you’ll have until September to pay any outstanding balance.
More information on these tax deferral measures are available by clicking here. A detailed summary from the CRA covering all new tax deadlines is available here.
Work Sharing Program
The Work Sharing Program is run through employment insurance. It allows employers to coordinate with their employees to share work hours instead of laying them off.
Your business is eligible for the program if you’ve been open for two years and have seen at least a 10 percent decline in business directly or indirectly because of COVID-19.
All you have to do is prove the work shortage is temporary and beyond your control, and meet a few other eligibility requirements.
You can participate in the program for up to 76 weeks, which is an extension of the usual maximum period of 38 weeks. The government has also waived the usual “cooling off” period for businesses that have used the program in the past.
How to use it
This is a somewhat strict program, so you’ll want to read up on it before you apply.
You can find everything you need to know about it by clicking here. The federal government has even put together a special guide to applying, which you can access here.
Help With Mortgage And Credit Payments
The Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank, and TD Bank will give credit relief to customers facing challenges related to the virus.
This relief will primarily come in the form of six-month deferrals on mortgage payments, although the exact details will depend on your specific financial institution.
Essentially, your bank will put your mortgage payments on pause for six months.
After the agreement ends, your mortgage payments return to normal and you will have to repay the missed payments — including any interest that has built up during the deferral period.
How to use it
These deferrals will all be done on a case-by-case basis, so to access them you’ll have to go straight to your financial institution.
More information about the program, in general, is available here.
Interest-Free Loans For Small Businesses
To help cover operating costs during the COVID-19 pandemic, the government is offering interest-free loans of up to $40,000 to small businesses and not-for-profit organizations.
To qualify, you need to have had a payroll between $50,000 and $1-million in 2019.
How to use it
These loans will be given out as part of the government’s Business Credit Availability Program, which is run through Export Development Canada and Business Development Canada.
The government says the programs will roll out in mid-April, and that interested businesses should contact their financial institutions.
More information about the program is available here.
Financial Help For Self_Employed People Who Can’t Work Because of COVID-19
Through its new Canada Emergency Response Benefit (CERB), the government is giving $2,000 a month to Canadians who lose their income because of the COVID-19 pandemic.
You qualify for the monthly payment if:
- You’re self-employed or a contract worker who couldn’t normally collect employment insurance.
- You had to stop working because of COVID-19 and don’t have access to any other type of paid leave;
- You are sick, quarantined, or taking care of someone who is sick from COVID-19;
- You’re a working parent who has to stay home because your kids are sick or can’t go to school or daycare;
- You still have jobs but can’t go into work because of COVID-19;
Essentially, the benefit covers all Canadians who have stopped working due to COVID-19. It will cover the period from March 15 until October 3.
How to use it
The federal government is creating an online portal where you’ll be able to apply for the CERB and learn more about it. The portal isn’t ready yet but will be made public in early April.
You’ll also be able to apply for the benefit through a toll-free telephone number. That number will also be made public soon.
For now, more information about the CERB is available here.
More Information
Complete details of all of the federal government’s economic relief measures can be found at the links below:
Government of Canada’s COVID-19 Economic Response Plan
Special COVID-19 Measures from the Canada Revenue Agency
Canadian Federation of Independent Businesses COVID-19 Relief Measures FAQ
Government Of New Brunswick Programs
Waiving late penalties on property taxes
You’re still supposed to pay your business’ property tax by the usual May 31 deadline.
However, the provincial government has said it will waive late fees if you miss that deadline because of financial challenges stemming from COVID-19.
How to use it
All we know right now is that waived late fees will be assessed on a case-by-case basis.
Deferred Payments on Government Loans and Fees
The provincial government is offering relief on government loans to any businesses “experiencing difficulties as a result of COVID-19.”
This means you won’t have to make any payments on loans you have through any provincial government department or agency for six months. You also won’t get hit with interest during the grace period
How to use it
Again, the provincial government says these deferrals will be assessed on a case-by-case basis. It asks you to contact the department through which you have the loan to request it.
New Operating Loans for Business
The provincial government is offering loans of up to $200,000 to small businesses that need operating cash.
The same $200,000 loans will also be available for larger businesses as well.
Since the loans are intended to help with COIVD-19 relief, you won’t be required to make payments on these loans for a year. That one-year grace period will also be interest-free
How to use it
The provincial government still hasn’t released the full details of this program. However, it says the loans will be given out through Opportunities New Brunswick, through “trusted partners.”
The government has said it will provide more information soon, but that you will be able to apply directly through Opportunities New Brunswick.
Workers’ Compensation
WorksafeNB has deferred all premium payments for three months. You won’t have to pay assessment premiums related to employer payrolls for March, April, and May, and interest won’t be charged during the grace period.
More information, including a Q&A, is available here.
One-time payment for job losses
The provincial government will provide a one-time income benefit to workers or self-employed people in New Brunswick who have lost their job due to the state of emergency.
This will be a one-time payment of $900, administered through the Red Cross. In order to be eligible for the benefit you must:
- Have been laid off, or been self-employed and lost your income on or after March 15 due to the state of emergency in New Brunswick;
- Have earned a minimum of $5,000 (gross) in the last 12 months;
- Have lost your primary source of income;
- Have no other income, and;
- Be at least 18 years old
How to use it
More information about the benefit, including all of the specific eligibility criteria, is available here.
To go straight to the registration form, visit the Red Cross website by following this link.
Complete details of all of the Government of New Brunswick’s economic relief measures can be found at the links below:
Government of New Brunswick COVID-19 Guidence For Business
Canadian Federation of Independent Businesses New Brunswick COVID-19 FAQ