Support for Businesses

Summary of the Government of Canada's Economic Relief Measures for Businesses Impacted by COVID-19.

Canada Emergency Business Account

  • Banks will offer $40,000 loans, guaranteed by the Government to qualifying businesses and loans will be interest-free for the first year. 

  • Allows hoteliers to easily access loans directly through their banking institution instead of a third-party.

  • For qualifying businesses, the first $10,000 of this amount will be forgivable.

  • Can be accessed on a property basis.
     

Canada Emergency Wage Subsidy Program

  • Increased from the initial 10% to 75% wage subsidy.

  • Applies to laid-off workers, and now will no longer exclude employees that have been without pay for 14 consecutive days.

  • Extended to include partnerships that are up to 50-per-cent owned by non-eligible members; and partnerships where the partners are Indigenous governments.

  • First extended to August 2020 and then extended to December 2020 to ensure hoteliers receive added wage support during the fall.

  • Now includes third-party payroll providers that can receive retroactive CEWS payments backdated to March 15, 2020.

  • Extended CEWS includes subsidy top-up for hardest-hit businesses.

Hoteliers Guide:

Government of Canada
Economic Relief Measures

New Access to Credit through Export Development Canada (EDC) and the Business Development Bank of Canada (BDC)

  • The Government announced $12.5 billion of additional support and access to credit through EDC and BDC to help small and medium-sized enterprises with cashflow requirements.

  • Hoteliers can apply for a guaranteed loan through your banking institution to access this additional financial support.

Business Credit Availability Program (BCAP)

The Government of Canada 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.

Small and Medium-sized Enterprise (SME) Loan and Guarantee Program

  • Loans of up to $6.25 million will be made available to small and medium-sized businesses in Canada directly through their financial institutions.

  • The qualifications for the SME Loan and Guarantee program are not yet clarified and HAC is working with the government to obtain further clarification on this classification and has requested that hoteliers are eligible to apply for these loans on a property-by-property basis rather than at the corporate entity level.

  • Hoteliers can apply for a partially guaranteed loan through their banking institution to access this financial support.

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