Newsletter
.jpeg)
On behalf of the City of Summerside Economic Development, we wanted to provide a bit of an update on Covid-19 also known as coronavirus, which may be impacting your business operations. We are working every day with our local business partners and community to minimize as best we can the effects of this current situation. The City of Summerside Senior Management Team is looking at options in partnership with our Provincial and Federal Partners on how best to complement and supplement our collective efforts. We are all in this together and together we will work towards addressing the foundational challenges we are all facing. We know with the fluidity of the situation things are changing daily in terms of what’s available for your business and family. We have done our best to share in one document the most current program updates.
We know many people are trying to source information, obtain assistance, understand the impacts to their business, family and community and what are the longer-term supports for business. Through our partners at MRSB we are sharing a resource of information that may assist in understanding the latest Covid-19 updates from various partners.
Extended Income Tax Payments Deadlines
- – Businesses will be allowed to defer payment of any income tax amounts that become owing on or after March 18, 2020, and before September 2020 until after August 31, 2020
- – This would apply to tax balances due, as well as instalments under Part I of the Income Tax Act (does not apply to HST or payroll remittances)
- – Interest or penalties will not accumulate on these amounts during this period
- – The Charities Directorate is extending the filing deadline to December 31, 2020, for all charities with a Form T3010, Registered Charity Information Return due between March 18, 2020, and December 31, 2020
- – A 10% wage subsidy for the next 90 days of up to a maximum of $1,375 per employee and $25,000 per employer for all eligible small businesses. This assistance will be beneficial for businesses who retain staff during this period
- – Benefit immediately by reducing their remittances of income tax withheld on their employees’ remuneration
- – Eligible small businesses would include corporations eligible for the small business deduction, NPO’s and charities
- – An increase in the credit available to small and medium Canadian businesses
- – The program will provide more than $10B of additional support to businesses experiencing cash flow challenges through the BDC and E
- – Regional Development Agencies, including ACOA, will apply a deferral of three months on all payments due to the government, as of April 1, 2020
- – Deferral of payments and related interest charges
- – Contact your ACOA account manager to formalize these deferrals into an amended repayment schedule
- – Increase in near term credit available to farmers and the agri-food sector through FCC
- – Government to purchase up to $50B of insured mortgage pools through the CMHC
- – Provide stable funding to banks and mortgage lenders and support continued lending to Canadian businesses and consumers
- – CMHC is ready to further support liquidity and the stability of the financial markets through its mortgage funding programs as necessary
- – Government will raise CMHC’s legislative limits to guarantee securities and insure mortgages by $150B each
SUPPORT FOR BUSINESSES—PROVINCIAL
Emergency Working Capital Fund
- – To assist PEI’s small businesses with maintaining normal business operations
- – Working capital loan of up to $100,000 per company
- – Fixed interest rate of 4% per annum, commencing at first disbursement and accruing during the term of the loan
- – Can be used to assist with fixed operating costs (payroll, rent, utilities, etc.)
- – Repayment will commence 12 months after the first disbursement, with the balance outstanding to be repaid over the remaining 5-year period (for a total term of 6 years)
- – Eligibility criteria:
- >> Existing small businesses (not startups) located and operating in PEI and generating revenue on PEI
- >> Registered to conduct business within PEI
- >> Applicant has a satisfactory credit rating and must not have any defaulted outstanding debt obligation on file in the Province’s Central Default Registry
- – Security on loans:
- >> Promissory Note for the full amount of the loan
- >> Personal guarantees of the business owner(s)
- >> General Security Agreement
- – No application fee
- – Link to application https://www.princeedwardisland.ca/en/service/emergency-working-capital-financing
- – Temporary program to support self-employed
- – Our understanding from discussions with Innovation PEI is that this program is available to owners of incorporated small businesses
- – To be eligible for this, self-employed individuals must:
- >> Have declared business income on their most recent tax return
- >> Business income must be the primary source of income
- >> Be able to demonstrate direct financial losses resulting from COVID-19 isolation measures at the time of application
- >> Not be EI eligible or receiving any other income support
- – Maximum of $500 per week for the period March 16 to March 29, 2020
- – Link to application https://www.princeedwardisland.ca/en/service/emergency-income-relief-self-employed
FAMILIES AND WORKERS—FEDERAL
Extended Tax Filing Deadlines
- – Individual’s personal tax filing deadline has been extended to June 1, 2020
- – CRA is encouraging individuals who expect to receive GSTC or CCB not to delay filing of their return to ensure their entitlements for 2020-21 are properly determined
- – Allowing taxpayers to defer the payment of any income tax amounts that become owing on or after today and before September 2020 until September 1, 2020
- – This applies to tax balances due and instalments under Part I of the Income Tax Act.
- – Interest or penalties will not accumulate on these amounts during this period
- – Trusts having a taxation year ending December 31, 2019 filing deadline has been extended to May 1, 2020
- – Temporary boost to CCB payment
- – For the 2019-20 benefit year, an increase in the maximum annual CCB payment amount by $300 per child
- – This extra $300 per child will be part of the May payments
- – Income support to workers who must stay home and do not have access to paid sick leave
- – Flat payment benefit
- – Income support to:
- >> Workers, including self-employed, who are sick, quarantined, or who have been directed to self-isolate but do not qualify for EI sickness benefits
- >> Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, parent or another dependent who is sick, but do not qualify for EI sickness benefits
- >> EI-eligible and non-EI-eligible working parents who must stay home without pay because they have children who need care or supervision because of school closures
- – Income support of up to $900 bi-weekly for up to 15 weeks
- – Administered through CRA and available in April 2020
- – Applicants will need to attest that they meet the eligibility requirement and re-attest every two weeks to reconfirm eligibility
- – Ways to apply:
- >> On CRA My Account secure portal
- >> From secure My Service Canada Account
- >> Call toll-free number – a number not accessible yet
- – Delivered through CRA for workers who are not eligible for EI and who are facing unemployment
- – Targeted to self-employed workers
- – Effective April 2020
- – Extension of a maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks across Canada
- – Ease eligibility requirements and streamline the application process
- – Program supports workers who agree with their employer to a reduction of normal working hours
- – Link to application https://www.canada.ca/en/employment-social-development/services/work-sharing/temporary-measures-forestry-sector.html
- – Assistance for individuals and families with low and modest incomes
- – One- time special top-up payment under the GST credit
- – Starting in May, on average, close to $400 for single individuals and close to $600 for couples.
- – CRA has waived the one-week waiting period for the claim of EI sickness benefit
- – Employees who have no paid leave benefit but are eligible for EI benefits can apply for EI sickness benefits if:
- >> They are in medical quarantine
- >> Asked to self-isolate by their employers for 14 days
- – In order to claim EI sickness benefits, employees must be losing 40% or more of their weekly income and have worked 600 hours or more during the last 52 weeks or since their last claim for EI benefits
- – The requirement for a medical certificate has been waived
- >> Employees can get EI benefits for the full 14 days and employees who fall sick beyond the 14-day period can receive an additional 13 weeks of EI sickness benefits up to a maximum of 15 weeks total
- – Benefit is calculated based on 55% of an individual’s insurable earnings for the last 12 months (or since the last claim) up to a maximum of $573 per week
- – If an employer chooses to “top-up” benefits to an employee who is unable to work due to COVID-19 while collecting EI benefits they must register under the Supplementary Unemployment Benefit Plan.
- – Employers can use a SUB plan to increase their employees’ weekly earnings when they are unemployed due to a temporary shortage of work, training, illness, injury or quarantine
- – SUB plans must be registered with Service Canada
- – Payments from SUB plans that are registered are not considered employment earnings and therefore are not subject to CPP or EI contributions and are not deducted from EI benefits, but are reported on a T4A slip
- – An acceptable plan:
- >> Identifies the group of employees covered and the duration or the plan
- >> Covers a period of unemployment caused by 1 or a combination of the following:
- – Temporary stoppage of work
- – Training
- – Illness, injury or quarantine
- >> Requires employees to apply for and be in receipt of EI benefits in order to receive payments under the plan
- >> Requires combined weekly payments from the plan and the portion of the EI weekly benefit rate does not exceed 95% of the employee’s normal weekly earnings
- >> Requires it to be entirely financed by the employer
- >> Requires that on termination, all remaining assets of the plan will be reverted to the employer or be used for payments under the plan or for its administrative costs
- >> Requires that written notice of any change to the plan be given to Service Canada within 30 days after the effective date of the change
- >> Provides that the employees have no vested right to payments under the plan except during a period of unemployment specified in the plan
- >> Provides that payments in respect of guaranteed annual remuneration, deferred remuneration or severance pay will not be reduced or increased by payments received under the plan
- – Link for additional information https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/ei-employers-supplemental-unemployment-benefit.html
- – Increased flexibility to lenders to defer mortgage payments on homeowner government-insured mortgage loans for borrowers facing financial difficulties related to COVID-19
- – Lenders will be allowed to defer payments beginning immediately
- – Up to six-month payment deferral
- – Reduction of minimum withdrawals from RRIFs by 25% for 2020 to limit the impact on seniors’ retirement savings
- – Six-month, interest-free moratorium on loan payments for all individuals who are in the process of repaying these loans
- – $305M new distinctions-based Indigenous Community Support Fund
- – Address immediate needs in First Nations, Inuit, and Metis Nation communities
- – Provide up to $50M to women’s shelters and sexual assault centers to help with a capacity to manage or prevent an outbreak in their facilities
- – Includes funding for facilities in Indigenous communities
- – Assistance for homeless shelters
- – Additional $157.5M to address needs of Canadians experiencing homelessness
- – Can be used for a range of needs such as purchasing beds and physical barriers for social distancing and securing accommodation to reduce overcrowding in shelters.
SUPPORT FOR INDIVIDUALS,
FAMILIES AND WORKERS—FEDERAL
Early Learning and Education Support
- – Fund of up to $2 million to support early learning centers and their staff, maintain childcare spaces and ensure parents do not pay fees during the period of closures
- – Suspending repayments for provincial student loans for the next six months
- – Providing home learning activities for students for the duration of the confirmed school closures through the Public School Branch and La Commission scolaire de langue française websites – accessible Monday, March 23
- – For employers to provide temporary financial support to their employees who have experienced a significant reduction in their hours of work
- – Assistance of $250 per week
- – Employers to complete applications to help identify their workers who have experienced a significant reduction in their work hours.
.jpeg)
We Need to Hear From You
This is a rapidly evolving situation that is changing daily. We are committed to helping small businesses during this situation. We would like to learn more about how your business is being impacted and how we can support you:
Thank you for helping with our survey about how the COVID-19 Virus is impacting your business. Your responses will help us better understand how government and industry associations can support your business in both the short and long term and work together to deliver support.
Your feedback is important to ensure Summerside has a coordinated response to how best to support business in these challenging times.
All your feedback will be consolidated as we work together to help shape responses to the crisis.
If interested in learning more about investment opportunities, economic development support or opportunities for growth, please call our Economic Development Professionals.
We would love to chat.
Alternatively, you can email us at mike@summerside.ca.
It could be the most profitable email you have ever sent.
Michael Thususka
Director of Economic Development City of Summerside
275 Fitzroy Street, Summerside PE C1N 1H9
M: 902.432.0103, E: mike@summerside.ca
LET’S BUILD THE FUTURE TOGETHER!
We would love to chat.
Alternatively, you can email us at mike@summerside.ca.
It could be the most profitable email you have ever sent.
Michael Thususka
Director of Economic Development City of Summerside
275 Fitzroy Street, Summerside PE C1N 1H9
M: 902.432.0103, E: mike@summerside.ca
LET’S BUILD THE FUTURE TOGETHER!