Canada’s COVID-19 Economic Response Plan

Avoiding layoffs, rehiring employees and creating new jobs

• Canada Emergency Wage Subsidy (CEWS)

  We are covering a portion of an employee's wages for eligible employers. The CEWS will allow you to re-hire your employees and avoid layoffs as the economy continues to safely reopen.

  Apply for the CEWS

• Temporary 10% Wage Subsidy

  The Temporary 10% Wage Subsidy is a three-month measure that allows eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency.

  Learn more about the Temporary 10% Wage Subsidy for Employers

• Extending the Work-Sharing program

  We have extended the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.

  Apply to the Work-Sharing program

• Creating new jobs and opportunities for youth

  We are creating up to 116,000 jobs, placements, and other training opportunities to help students find employment and develop valuable skills this summer and over the coming months.

  We also made temporary changes to the Canada Summer Jobs program to allow employers to:

  • receive an increased wage subsidy, so that private and public sector employers can also receive up to 100 % of the provincial or territorial minimum hourly wage for each employee;
  • extend the end date for employment to February 28, 2021;
  • adapt their projects and job activities;
  • hire staff on a part-time basis.

  
  

  Learn more about the various programs:

  • Canada Emergency Wage Subsidy (CEWS)
  • Canada Summer Jobs program (Calls for applications closed)
  • Youth Employment and Skills Strategy (Calls for applications closed)
  • Student Work Placement Program
  • Mitacs
  • Business + High Education Roundtable
• Extension of lay-off periods

  We have extended time periods for temporary layoffs by up to six months in the Canada Labour Standards Regulations to allow employers more time to recall laid-off employees. The temporary changes will help protect the jobs of federally regulated private-sector employees and support employers facing economic hardship as a result of the pandemic.

  Learn more about the changes

Financial support, loans and access to credit

• Canada Emergency Business Account (CEBA) interest-free loans

  The Canada Emergency Business Account (CEBA) provides 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. This program has been implemented by banks and credit unions in collaboration with Export Development Canada.

  Business owners can apply for support from CEBA through their banks and credit unions.

  This support is available until October 31.

  Learn more about the CEBA

• Loan Guarantee for Small and Medium-Sized Enterprises

  Through the Business Credit Availability Program, Export Development Canada (EDC) is working with financial institutions to guarantee 80% of new operating credit and cash flow term loans of up to $6.25 million to small and medium-sized enterprises (SMEs).

  This financing support is to be used for operational expenses and is available to both exporting and non-exporting companies.

  This program is now available at various banks and credit unions.

  This support is available until June 2021.

  Learn more about the loan guarantee

• Co-Lending Program for Small and Medium-Sized Enterprises

  Through the Business Credit Availability Program, Business Development Canada (BDC) is working with financial institutions to co-lend term loans of up to $6.25 million to SMEs for their operational cash flow requirements.

  The program offers differing maximum finance amounts based on business revenues.

  This program is now available at various banks and credit unions.

  This support is available until June 2021.

  Learn more about the Co-lending program

• Regional Relief and Recovery Fund (RRRF)

  We are providing nearly $962 million through the Regional Relief and Recovery Fund (RRRF) to help more businesses and organizations in sectors such as manufacturing, technology, tourism and others that are key to the regions and to local economies. This fund is specifically targeted to those that may require additional help to recover from the COVID-19 pandemic, but have been unable to access other support measures.

  Apply to the RRRF through your local Regional Development Agency

• Canada Emergency Commercial Rent Assistance (CECRA)

  Canada Emergency Commercial Rent Assistance (CECRA) provides relief for small businesses experiencing financial hardship due to COVID-19.

  Over the course of the program, property owners will reduce rent by at least 75 % for the months of April, May, June, July, August and September for their small business tenants. CECRA will cover 50 % of the rent, with the tenant paying up to 25 % and the property owner forgiving at least 25 %.

  Apply to CECRA

• Mid-Market Financing Program

  Through the Business Credit Availability Program, the Business Development Canada’s (BDC) Mid-Market Financing Program will provide commercial loans ranging between $12.5 million and $60 million to medium-sized businesses whose credit needs exceed what is already available through the Business Credit Availability Program and other measures.

  BDC anticipates that qualifying companies will have annual revenues in excess of approximately $100 million.

  This support is available until June 2021.

  Learn more about the Mid-market Financing Program

• Mid-Market Guarantee and Financing Program

  Through the Business Credit Availability Program, EDC’s Mid-Market Guarantee and Financing Program will bring liquidity to companies who tend to have revenues of between $50 million to $300 million, to sustain operations during this uncertain period. EDC will continue to work with Canadian financial institutions to guarantee 75 % of new operating credit and cash-flow loans – ranging in size from $16.75 million to a maximum of $80 million.

  These expanded guarantees are available to exporters, international investors and businesses that sell their products or services within Canada.

  More details will be made available soon.

• Businesses in the territories

  We are making available $15 million in non-repayable support for businesses in the territories to help address the impacts of COVID-19. This support will assist businesses with operating costs not already covered by other Government of Canada measures.

  Apply to the Northern Business Relief Fund

• Supporting Black-led business organizations through the National Ecosystem Fund

  We are investing up to $53 million to develop and implement the National Ecosystem Fund to support Black-led business organizations across the country.

  This will help Black business owners and entrepreneurs access funding and capital, mentorship, financial planning services, and business training.

  This initiative is part of the Black Entrepreneurship Program, in which we are investing up to nearly $93 million.

  More details on eligibility requirements and how to apply will be available soon

• Supporting Black business owners and entrepreneurs through the Black Entrepreneurship Loan Fund

  We are supporting Black business owners and entrepreneurs through the Black Entrepreneurship Loan Fund that will provide loans of between $25,000 and $250,000.

  This initiative is part of the Black Entrepreneurship Program, in which we are investing up to nearly $93 million.

  More details on eligibility requirements and how to apply will be available soon

• Large Employer Emergency Financing Facility (LEEFF)

  The Large Employer Emergency Financing Facility (LEEFF) provides bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going.

  The additional liquidity provided through LEEFF allows Canada’s largest businesses, their workers and their suppliers to remain active during this difficult time, and position them for a rapid economic recovery.

  This program is delivered by the Canada Development Investment Corporation, in cooperation with Innovation, Science and Economic Development Canada and the Department of Finance.

  Apply to the LEEF program  

• Additional support by sector

  • Agriculture and agri-food
  • Aquaculture and fisheries
  • Culture, heritage and sport
  • Air transportation
  • Tourism
  • Energy
  • Academic and research

Support for self-employed individuals

• Canada Recovery Benefit (CRB)

  Pending the passage of legislation
  

  We would provide $500 per week for up to 26 weeks, to workers who are self-employed or are not eligible for Employment Insurance (EI) and who still require income support.

  You may be eligible for this benefit if you:

  • are not eligible for EI
  • reside and are present in Canada for the application period
  • are at least 15 years old on the first day of the application period and have a valid Social Insurance Number (SIN)
  • earned a minimum of $5,000 in 2019, in 2020, or in the 12 months preceding your first application for this benefit from one or more of the following sources: employment income, self-employment income, Employment Insurance (EI) maternity or parental benefits; or Quebec Parental Insurance Plan (QPIP) benefits
  • have stopped working due to the COVID-19 pandemic and are available and looking for work; or are working and have had a reduction in their employment/self-employment income for reasons related to COVID-19
  • have had a reduction of at least 50% in your employment/self-employment income for reasons related to COVID-19
  • have not quit your job voluntarily
  • are not receiving the Canada Recovery Caregiving Benefit (CRCB), the Canada Recovery Sickness Benefit (CRSB), short-term disability benefits, workers’ compensation benefits, any Employment Insurance (EI) benefits, or Quebec Parental Insurance Plan (QPIP) benefits for the week for which you are applying

  
  

  This benefit is pending the passage of legislation in the House of Commons and Senate. More details will be made available soon.

• Canada Recovery Sickness Benefit (CRSB)

  Pending the passage of legislation
  

  We would provide $500 per week for up to two weeks, for workers who cannot work because they are sick or must self-isolate for reasons related to COVID-19.

  You may be eligible for this benefit if you:

  • reside and are present in Canada for the application period
  • are at least 15 years old on the first day of the application period and have a valid Social Insurance Number (SIN)
  • have earned at least $5,000 in 2019 or in 2020 or in the 12 months preceding your first application for this benefit from one or more of the following sources: employment income, self-employment income, Employment Insurance (EI) maternity or parental benefits; or Quebec Parental Insurance Plan (QPIP) benefits
  • have been unable to work for at least 50% of your normally scheduled work within a given week because of being sick or required to self-isolate for reasons related to the COVID-19 pandemic
  • are not in receipt of paid leave from an employer in respect of the same week
  • are not in receipt of the CERB, the EI Emergency Response Benefit (ERB), the Canada Recovery Benefit, the Canada Recovery Caregiving Benefit, short-term disability benefits, workers’ compensation benefits, or any EI benefits or Quebec Parental Insurance Plan (QPIP) benefits in respect of the same week.

  
  

  This benefit is pending the passage of legislation in the House of Commons and Senate. More details will be made available soon.

• Canada Recovery Caregiving Benefit (CRCB)

  Pending the passage of legislationn
  

  We would provide $500 per week, for up to 26 weeks per household to eligible workers who cannot work because they must provide care to children or family members due to the closure of schools, day cares or care facilities.

  You may be eligible for this benefit if you:

  • reside and are present in Canada for the application period
  • are at least 15 years of age on the first day of the application period and have a valid Social Insurance Number (SIN);
  • have earned at least $5,000 in 2019 or in 2020, or in the 12 months preceding your first application for this benefit from one or more of the following sources: employment income, self-employment income, Employment Insurance (EI) maternity or parental benefits; or Quebec Parental Insurance Plan (QPIP) benefits
  • have been unable to work for at least 50% of your normally scheduled work within a given week because of one of the following conditions:
    • must take care of a child who is under 12 years of age on the first day of the period for which the benefit is claimed:
      • because their school or daycare is closed or operates under an alternative schedule for reasons related to the COVID-19 pandemic
      • who cannot attend school or daycare under the advice of a medical professional due to being at high risk if they contract COVID-19
      • because the caregiver who usually provides care is not available for reasons related to the COVID-19 pandemic
    • must provide care to a family member who requires supervised care:
  • because their day program or care facility is closed or operates under an alternative schedule for reasons related to COVID-19
  • who cannot attend their day program or care facility under the advice of a medical professional due to being at high risk if they contract COVID-19; or
  • because the caregiver who usually provides care is not available for reasons related to the COVID-19 pandemic
  • are the only individual from your household claiming this benefit for the week in which you are applying
  • are not in receipt of paid leave from an employer in respect of the same week
  • are not in in receipt of the CERB, the EI Emergency Response Benefit (ERB), the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, short-term disability benefits, workers’ compensation benefits, or any EI benefits or Quebec Parental Insurance Plan (QPIP) benefits in respect of the same week

  
  

  This benefit is pending the passage of legislation in the House of Commons and Senate. More details will be made available soon.

• Canada Emergency Response Benefit (CERB)

  Closed
  

  We provided a taxable benefit of $2,000 every 4 weeks for up to 28 weeks to eligible workers who stopped working or whose work hours were reduced due to COVID-19.

  If you continue to need financial support, find out if you are eligible for Employment Insurance (EI)

  You can also look for employment opportunities through the Job Bank

• 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. 

  View all income tax and filing payment deadlines

Supporting financial stability

• Relief for federally regulated pension plan sponsors

  We are providing immediate, temporary relief to sponsors of federally regulated, defined benefit pension plans in the form of a moratorium, through the remainder of 2020, on solvency payment requirements for defined benefit plans.

  This relief will help ensure that employers have the financial resources they need to maintain their operations and their pension plans, and to protect the retirement security of their workers and retirees.

• 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.

  Learn more about the Insured Mortgage Purchase Program

• Bank of Canada's 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.

  Learn more about Bank of Canada's actions

• 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.

Education

• Ensuring a safe return to school

  We are providing up to $2 billion in support for provinces and territories through the Safe Return to Class Fund that will provide the complementary funding they need, as they work alongside local school boards to ensure the safety of students and staff members throughout the school year.

  Funding will be provided to provinces and territories in two instalments, with a first disbursement in Fall 2020 and additional funding available for early 2021, to ensure that provinces and territories have support for the whole school year.