Canada’s COVID-19 Economic Response Plan
The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak.
On this page
Support for individuals
Individuals and families
-
Increasing the Canada Child Benefit
We are providing up to an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.
This benefit will be delivered as part of the scheduled CCB payment in May.
Those who already receive the CCB do not need to re-apply.
-
Special Goods and Services Tax credit payment
We are providing a one-time special payment starting April 9 through the Goods and Services Tax credit for low- and modest-income families.
The average additional benefit will be close to $400 for single individuals and close to $600 for couples.
There is no need to apply for this payment. If you are eligible, you will get it automatically.
-
Extra time to file income tax returns
The filing due date for 2019 income tax returns for individuals has been deferred until June 1, 2020. Any new income tax balances due, or instalments, are also being deferred until after August 31, 2020 without incurring interest or penalties.
Consult all tax and payment dates
Note: If you expect to receive benefits under the Goods and Services Tax credit or the Canada Child Benefit, we encourage you not to delay filing your 2019 income tax return to ensure that your entitlements are properly determined.
-
Mortgage support
Canadian banks have committed to work with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. This includes permitting lenders to defer up to six monthly mortgage payments (interest and principal) for impacted borrowers. Canadians who are impacted by COVID-19 and experiencing financial hardship as a result should contact their financial institution regarding flexibility for a mortgage deferral. This gives flexibility to be available − when needed − to those who need it the most. You are encouraged to visit your bank’s website for the latest information, rather than calling or visiting a branch.
Consult your bank's dedicated COVID-19 page
Contact your financial institution for further mortgage assistance.
The Canada Mortgage and Housing Corporation and other mortgage insurers offer tools to lenders that can assist homeowners who may be experiencing financial difficulty. These include payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.
Canada’s mortgage insurers are committed to providing homeowners with solutions to mitigate temporary financial hardship related to COVID-19. This includes permitting lenders to defer up to six monthly mortgage payments (interest and principal) for impacted borrowers. Deferred payments are added to the outstanding principal balance and subsequently repaid throughout the life of the mortgage.
People facing unemployment
-
Canada Emergency Response Benefit (CERB)
We will provide a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19.
The Canada Emergency Response Benefit will be accessible online on April 6.
-
Apply for Employment Insurance
If you have stopped working because of COVID-19, you should apply for the Canada Emergency Response Benefit, whether or not are eligible for Employment Insurance. The Benefit is available for the period from March 15, 2020 to October 3, 2020.
If you applied for EI regular or sickness benefits on March 15, 2020 or later, your claim will be automatically processed through the Canada Emergency Response Benefit.
Starting April 6, 2020, you can apply through CRA My Account.
Until then, Canadians who are eligible for Employment Insurance and who have lost their job can continue to apply for Employment Insurance.
Support for people who are sick, quarantined, or in directed self-isolation
-
Canada Emergency Response Benefit (CERB)
We will provide a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19.
The Canada Emergency Response Benefit will be accessible online on April 6.
-
Improved access to Employment Insurance sickness benefits
If you are sick or quarantined because of COVID-19, you should apply for the Canada Emergency Response Benefit, whether or not are eligible for Employment Insurance. The Benefit is available for the period from March 15, 2020 to October 3, 2020.
If you applied for EI regular or sickness benefits on March 15, 2020 or later, your claim will be automatically processed through the Canada Emergency Response Benefit.
Starting April 6, 2020, there will be a single portal to assist you with the application process.
Until then, Canadians who are eligible for Employment Insurance and who have lost their job can continue to apply for Employment Insurance.
For the EI sickness benefits, we have:
- waived the one-week waiting period for EI sickness benefits for new claimants who are quarantined.
- waived the requirement to provide a medical certificate to access EI sickness benefits.
Apply for Employment Insurance sickness benefits
People who are unable to work
-
Canada Emergency Response Benefit (CERB)
We will provide a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19.
The Canada Emergency Response Benefit will be accessible online on April 6.
Indigenous peoples
-
Indigenous Community Support Fund
We are providing $305 million for a new distinctions-based Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.
These funds could be used for measures including, but not limited to:
- support for Elders and vulnerable community members,
- measures to address food insecurity,
- educational and other support for children,
- mental health assistance and emergency response services,
- preparedness measures to prevent the spread of COVID-19.
-
Supporting preparedness in First Nations and Inuit communities
We are providing $100 million to support a range of federal health measures, including support for preparedness in First Nation and Inuit communities. These funds will:
- respond to identified needs to update and activate pandemic plans
- support an effective allocation of public health and primary health care capacity to respond to the COIVD-19 outbreak
- align response efforts with scientific evidence as determined by a medical officer of health
- address immediate needs in the short term
-
Families choosing to stay on the land
We are providing $2.6 million to help Indigenous families who are choosing to stay on the land as part of the territory's response to COVID-19.
This fund will support families who would not otherwise be able to be on the land because of the financial burden of acquiring necessary provisions, such as wood and fuel, food, First Aid equipment, transportation and other items suitable to their situation and culture.
This fund will be administered by the Northwest Territory government through their existing partnerships with regional and community-based Indigenous governments.
Learn More
In addition to the measures above, Indigenous peoples may also be eligible for benefits listed under Support for individuals and Support for businesses.
People who need it most
-
Improving access to essential food support
We are providing $100 million to national, regional, and local organizations across Canada to:
- Purchase, transport and distribute food and other basic necessities
- hire temporary help to fill volunteer shortages
- implement safety measures, such as the purchase of personal protective equipment, to reduce the spread of COVID-19 among volunteers and clients.
These organizations – including but not limited to Food Banks Canada, Salvation Army, Second Harvest, Community Food Centres Canada, and Breakfast Club of Canada – will work with partners to meet the urgent food needs of Canadians.
-
Enhancing the Reaching Home initiative
We continue to support people experiencing homelessness during the COVID-19 outbreak by providing $157.5 million to the Reaching Home initiative.
The funding could 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.
-
Women’s shelters and sexual assault centres
We are supporting women and children fleeing violence, by providing up to $50 million to women’s shelters and sexual assault centres, including facilities in Indigenous communities, to help with their capacity to manage or prevent an outbreak in their facilities.
Learn More -
Youth support: mental health
We are giving $7.5 million in funding to Kids Help Phone to provide young people with the mental health support they need during this difficult time.
Support for seniors
-
Canada Emergency Response Benefit (CERB)
We will provide a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19.
The Canada Emergency Response Benefit will be accessible online on April 6.
-
Reduced minimum withdrawals for Registered Retirement Income Funds
We reduced the required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25 per cent for 2020.
-
Supporting the delivery of items and personal outreach
We are contributing $9 million through United Way Canada for local organizations to support practical services to Canadian seniors. These services could include the delivery of groceries, medications, or other needed items, or personal outreach to assess individuals’ needs and connect them to community supports.
Students and recent graduates
-
Suspend repayment and interest on Canada Student Loans and Canada Apprentice Loans
All student loan borrowers will automatically have their loan repayments and interest suspended until September 30, 2020.
Students do not need to apply for the repayment pause.
This moratorium applies to the federal portion of student loans. Borrowers should check with their provincial or territorial student loan provider to see if payment is required on the provincial or territorial portion.
Support for businesses
Avoiding layoffs and rehiring employees
-
Canada Emergency Wage Subsidy
The proposed Canada Emergency Wage Subsidy would cover 75 per cent of salaries for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. Employers of all sizes and across all sectors of the economy would be eligible with the exception of public sector entities.
This program is designed to help employers hardest hit by the COVID-19 pandemic to keep and retain workers.
Organizations that do not qualify for the Canada Emergency Wage Subsidy may qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, 2020.
Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details on how to apply will follow soon.
-
Extending the Work-Sharing program
Reduced and deferred payments
-
More time to pay income taxes
We are allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.
No interest or penalties will accumulate on these amounts during this period.
-
Deferral of Sales Tax Remittance and Customs Duty Payments until June
We are allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports.
Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.
These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of March 2020.
Access to credit
-
Establishing a Business Credit Availability Program
We established a Business Credit Availability Program (BCAP) to provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism.
This program includes:
-
Loan Guarantee for Small and Medium-Sized Enterprises
EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs.
-
Co-Lending Program for Small and Medium-Sized Enterprises
BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.
Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.
These programs will roll out in mid-April, and interested businesses should work with their current financial institutions.
-
-
Canada Emergency Business Account
The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.
This program will roll out in mid-April, and interested businesses should work with their current financial institutions.
Supporting financial stability
-
Launching an Insured Mortgage Purchase Program
We launched an Insured Mortgage Purchase Program, in which we will purchase up to $150 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation.
This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market.
-
Bank of Canada actions
The Bank of Canada is acting in several ways to support the economy and financial system and stands ready to take any and all actions that it can to protect the well-being of Canadians during this difficult time. The Bank has responded by lowering interest rates, intervening to support key financial markets and providing liquidity support for financial institutions.
-
Office of the Superintendent of Financial Institutions actions
The Office of the Superintendent of Financial Institutions announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.
Support for self-employed individuals
-
Canada Emergency Response Benefit (CERB)
We will provide a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19.
The Canada Emergency Response Benefit will be accessible online on April 6.
-
Deferral of Sales Tax Remittance and Customs Duty Payments until June
We are allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports.
Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.
These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of March 2020.
-
More time to pay income taxes
We are allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.
No interest or penalties will accumulate on these amounts during this period.
Support for industries
-
Increasing credit available for agriculture, fisheries and aquaculture
We have enabled Farm Credit Canada to provide an additional $5 billion in lending to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially sound during this difficult time.
-
Support for airports
We are waiving ground lease rents from March 2020 through to December 2020 for the 21 airport authorities that pay rent to the federal government. We are also providing comparable treatment for PortsToronto, which operates Billy Bishop Toronto City Airport and pays a charge to the federal government.
Learn more -
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.
We will provide the CRTC with an equivalent amount to the waived Part I licence fees to support CRTC’s operations.
Report a problem or mistake on this page
- Date modified: