The Essential Guide To Government Support For N.S. Businesses
The COVID-19 pandemic has hit Nova Scotia 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 Nova Scotia Programs
More Time to Pay Your Government Loans
Loans To Cover Operating Costs
Federal Government Programs
Help to pay 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 percent.
The subsidy is available to all businesses no matter their size, and not-for-profit organizations and charities – 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 income 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 a job 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 On Federal Programs
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 COIVD-19 Measures from the Canada Revenue Agency
Canadian Federation of Independent Businesses COVID-19 Relief Measures FAQ
Government of Nova Scotia Programs
Deferred Payments on Government Loans and Fees
The Government of Nova Scotia is giving businesses a break from paying back their government loans until June 30.
This means you won’t have to make payments on loans you owe the government until July or pay interest on the principle of those loans while you’re not making payments.
The same grace period will also be applied to any small business renewal fees you’d normally owe the government.
The loan deferral covers all government loans, including from the Farm Loan Board, Fisheries and Aquaculture Loan Board, Jobs Fund, Nova Scotia Business Fund, Municipal Finance Corp., and Housing Nova Scotia.
The government has said it will soon post a list of all the business renewal fees that fall under the grace period.
How to use it
So far, the government hasn’t specified exactly how these deferrals work.
Any additional information will be available on the “Support for individual, families, and businesses” section of the Government of Nova Scotia website.
Rent Deferral Program
The provincial government is giving financial insurance to commercial landlords to defer rents for three months, from April 1 until June 30.
If your tenant’s business closed as a result of the COVID-19 pandemic the government wants you to work out an agreement with your tenant to collet your rent in a reasonable way after the pandemic is over.
However, it will cover you if your tenant can’t pay. Each landlord can collect as much as $50,000 ($15,000) per tenant if they qualify for the program.
How to use it
You and your tenant must have come to a rent deferral agreement by March 31 in order to be eligible for this program.
If you have, you then need to sign up for the program with the provincial government by April 3.
To do that, send an email to [email protected] that includes:
- Your tenant’s business’s legal name;
- Your tenant’s business’s address;
- Total dollar amount of rent being deferred for the period of 1 April to 30 June 2020.
A detailed rundown of the program is available here.
Small Business Loan Guarantee Program
The Small Business Loan Guarantee Program is offered through local credit unions, with support from the provincial government.
It lets credit unions give up to $500,000 of financing to entrepreneurs and small businesses through loans, working capital, and lines of credit.
All types of businesses are eligible except residential and commercial real estate, beverage rooms and taverns, or any venture of a “questionable ethical or legal nature.”
The provincial government has made changed to the program to make it easier to access credit through the programs for businesses short on cash. The government has also said it will guarantee the first $100,000 for those who wouldn’t otherwise qualify for a loan.
How to use it
This program is offered only through credit unions, so you’ll need to get in touch with your local credit union to take advantage of it.
More about the program, including a list of credit unions where it’s available, can be found here.
More Information
Complete details of all of the Government of Nova Scotia’s economic relief measures can be found at the links below:
Government of Nova Scotia COVID-19 Support for individuals, families and businesses
Canadian Federation of Independent Businesses Nova Scotia COVID-19 FAQ