Where to find financial assistance
You are running low on funds to pay your employees while you are waiting for the Canada Emergency Wage Subsidy? Many Canadian entrepreneurs are in the same situation as you. The Government of Canada is committing $95 billion, mostly in the form of loans, to help you maintain employment ties with your employees. The financing you need is within reach. Talking to the right person is key.
Contact your financial institution
The Government of Canada has launched the Canada Emergency Business Account, a program that allows you to borrow up to $40,000 from your bank, interest-free until December 31, 2022. After this date, the remaining balance will be converted to a three-year term loan at a 5% annual interest rate. Under certain conditions, you could even obtain a loan forgiveness of $10,000. To benefit from this measure, you must have paid between $20,000 and $1.5 million in employment income for 2019.
Through your financial institution, you could also benefit from the BDC Co-Lending Program for Small and Medium Enterprises. The ten-year term loan amount varies depending on your pre-crisis revenues. For example, if your business’s revenues were less than $1 million in 2019, your loan could be up to $315,000.
Other financing programs are in place as well. Do not hesitate to consult your financial adviser, who will know how to guide you toward the financing solutions adapted to your needs.
Contact your Regional Development Agency
Canada’s six Regional Development Agencies (RDA) have received $965 million from the federal government. This amount must be redistributed to SMEs like yours. Your agency could provide you with capital, offer you advice, or direct you toward the temporary support programs accessible to you. To find your region’s RDA, visit the Government of Canada’s website.
Is your business a start-up?
You could receive financial assistance via the Industrial Research Assistance Program, which has recently received $250 million from the federal government to support innovative entrepreneurial projects. You could also look into the services of Futurpreneur, which offers financing and mentoring to start-up owners under 40. This non-profit organization has just received $20.1 million from the federal government to help entrepreneurs with their payments for a 12-month period.
Visit your provincial government’s website
Support is not provided solely by Ottawa; the different provincial governments are offering multiple financing strategies to help businesses ride out the pandemic. To each province its action plan. Inform yourself regarding the relief measures at your disposal by clicking on your province’s hyperlink:
- British Columbia
- Prince Edward Island
- New Brunswick
- Nova Scotia
- Northwest Territories
We encourage you, if possible, to keep your employees on the payroll to favour a quick and effective return to regular business activities. Nethris wishes to express our sincere admiration for all employers during this difficult time.
To find other useful informations for your business during the global COVID-19 pandemic, visit nethris.com/covid-19.