Summary of Economic Support Measures Relevant to Canadian Heritage

In response to the significant economic impacts of COVID-19, the Government of Canada has undertaken a number of robust actions to support Canadians and Canadian businesses. These actions include both industry-specific supports and broadly applicable measures.

In addition, Canadian Heritage is ensuring flexibility for funding recipients whose activities have been impacted by COVID-19 (such as cancelled events).

• We are adjusting our funding agreements for grants and contributions to provide flexibility to adjust to situations where the original scope of activities need to be changed or, in some cases, where activities are cancelled entirely.
• In addition, we are working to establish a simplified process for submitting and processing 2020-21 funding requests for the Canada Book Fund and Canada Periodical Fund. The process will significantly reduce the time it takes to process files. Eligible beneficiaries will be able to access financial assistance much more quickly than usual.

Key Measures Targeted at Canadian Heritage Sectors

• 1) COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations: A temporary relief measure to meet the financial needs of cultural, heritage and sport organizations facing significant losses due to COVID-19, so they can continue to support artists and athletes. The goal of the $500 million in funding is to ensure business continuity for organizations whose viability has been negatively impacted by COVID-19. The Fund will provide financial support consistent with other assistance measures in place such as the Canada Emergency Business Account. It will be administered by Canadian Heritage with the support of its partners.
• 2) Digital Citizen Initiative’s Digital Citizen Contribution Program: As part of the $500 million detailed above, the Government of Canada is investing $3.5 million in several organizations through the Digital Citizen Initiative’s Digital Citizen Contribution Program to help combat false and misleading COVID-19 information, as well as the racism and stigmatization that are often the result. This support will help fund activities such as public awareness tools and online workshops, to help Canadians become more resilient and think critically about COVID-19 disinformation. Funded projects will reach Canadians on a national and local scale, online and offline, in minority communities, in both official languages and in Indigenous communities. As announced on April 7, 2020, the funded projects are as follows:
  • Upstream ($95,000)
  • MediaSmarts ($654,134)
  • Société de l'Acadie du Nouveau-Brunswick ($434,725)
  • COVID-19 : Fédération professionnelle des journalistes du Québec ($330,164)
  • Institute for Canadian Citizenship ($490,880)
  • Digital Public Square ($679,176)
  • Metro Toronto Chinese & Southeast Asian Legal Clinic ($301,904)
  • Asian Environmental Association ($64,660)
• 3) Support for Broadcasters: The Canadian Radio-television and Telecommunications Commission (CRTC) will not issue letters requesting payment for Part I licence fees by broadcasters for the 2020–21 fiscal year. The Government will transfer necessary funds to the CRTC to support its operations. Waiving these regulatory charges for broadcasters provides immediate financial relief for the broadcasting industry, freeing up more than $30 million in cash.
• 4) Journalism Tax Measures: The Government of Canada has announced action to support the Canadian news and broadcasting sectors during the COVID-19 pandemic, including the establishment of an Advisory Board and its membership to assist the Government in administering the journalism tax measures introduced in Budget 2019. The Government has also released draft legislative proposals that would make adjustments to these tax measures to help ensure that they achieve their initial objectives.
• 5) $30M in targeted COVID-19 advertising on Canadian media platforms: Led by Health Canada, the Government of Canada has announced action to support Canadian media platforms by allocating $30M for COVID-19 awareness content to be specifically published on media platforms based in Canada.

Key Non-Targeted Measures (non-exhaustive)

• 1) Canada Emergency Wage Subsidy (CEWS): 75 per cent subsidy for up to 12 weeks for qualifying employers, retroactive to March 15.
• 2) Canada Emergency Business Account: $25 billion in interest-free loans of up to $40,000 each through private financial institutions to qualifying organizations, with the possibility of $10,000 forgiveness.
• 3) Business Credit Availability Program: $40 billion in additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC), enabling lending to meet operational cash-flow requirements.
• 4) Canada Emergency Response Benefit (CERB): A new benefit of $2,000 monthly for up to 4 months to eligible workers who have lost employment because of the COVID pandemic.
• 5) Canada Emergency Student Benefit (CESB): This benefit would provide $1,250 per month for eligible students or $1,750 per month for eligible students with dependents or disabilities.
• 6) Deferral of all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments: Deferral of GST/HST payments and customs duties owed for imports for all businesses (included the self-employed) until June.

Notes on Key Eligibility Rules

A number of criteria will determine the eligibility of PCH Stakeholders.

Canada Emergency Business Account (CEBA) Eligibility

The eligibility requirements are:

• The Borrower is a Canadian operating business in operation as of March 1, 2020.
• The Borrower has a federal tax registration.
• The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000.
• The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
• The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
• The Borrower acknowledges its intention to continue to operate its business or to resume operations.
• The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.

The following exclusionary conditions are set on eligibility:

“Per the requirements of the Program, as set out by the Government of Canada, the Borrower confirms that:

1. It is not a government organization or body, or an entity owned by a government organization or body;
2. It is not a union, charitable, religious or fraternal organization or entity owned by such an organization or if it is, it is a registered T2 or T3010 corporation that generates a portion of its revenue from the sales of goods or services;
3. It is not an entity owned by individual(s) holding political office; and
4. It does not promote violence, incite hatred or discriminate on the basis of sex, gender, sexual orientation, race, ethnicity, religion, culture, region, education, age or mental or physical disability.”

Canada Emergency Wage Subsidy (CEWS) Eligibility

CEWS Eligibility conditions are set on two fronts: eligible employers and eligible employees.

Eligible employers include:

• individuals (including trusts)
• taxable corporations
• persons that are exempt from corporate tax (Part I of the Income Tax Act), other than public institutions:
  • non-profit organizations
  • agricultural organizations
  • boards of trade
  • chambers of commerce
  • non-profit corporations for scientific research and experimental development
  • labour organizations or societies
  • benevolent or fraternal benefit societies or orders
• registered charities
• partnerships consisting of eligible employers

Public institutions are not eligible for the subsidy. This includes municipalities and local governments, Crown corporations, public universities, colleges, schools and hospitals.

Applicants must also demonstrate the following minimum revenue reduction:

Eligible revenue generally includes revenue earned in Canada from:

• selling goods
• rendering services, and
• others' use of your resources

Special revenue circumstances:

• Registered charities and non-profit organizations: Registered charities and non-profit organizations may choose whether or not to include revenue from government sources, such as grants, when applying for the subsidy. They must take the same approach for each period they are applying for.
• Non-arm's length transactions and affiliated groups: There are special rules for revenue related to certain non-arm's length transactions and affiliated groups.

The following determines who are eligible employees:

• An eligible employee is an individual employed in Canada by the eligible employer during the claim period, except if there was a period of 14 or more consecutive days in that period where they did not receive any pay (eligible remuneration) by the eligible employer.
• Employee eligibility is based on whether the person is employed in Canada, not where they live.
• Employees who have been laid off or furloughed can become eligible retroactively, as long as the eligible employer rehires them and their retroactive pay and status meet the eligibility criteria for the claim period. The eligible employer must rehire and pay such employees before including them in the calculation for the subsidy.