Canada’s Covid-19 Economic Response Plan

How Canada Government Protects the Well-being of their Nationals during Covid-19

Governments across the country are spending unprecedented amounts in response to the COVID-19 pandemic but in doing so, they’re only making up a fraction of the damage the novel coronavirus is doing to the Canadian economy.

Canada government provide support and various benefit schemes for people who are being affected by Covid-19 in two main layers namely, support for individuals and support for businesses. This blog discusses a deep understanding of various benefits granted by Canadian Government in order to support their individuals and businesses to survive during this pandemic situation.

Support for individuals

Canada government work with provinces and territories through a new transfer to cost-share a temporary top up to the salaries of low-income workers (those who earn less than $2,500 per month on a full-time basis), that the provinces and territories have deemed essential in the fight against COVID-19.

The Government of Canada is 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.

Homeowners facing financial hardship may be eligible for a mortgage payment deferral of up to six months.

The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. After the agreement ends, your mortgage payments return to normal and the deferred payments including principal and accumulated interest are added to the outstanding principal balance and subsequently repaid throughout the life of the mortgage.

The government is proposing the Canada Emergency Student Benefit (CESB) that would provide support to students and new graduates who are not eligible for the Canada Emergency Response Benefit or Employment Insurance or unable to work due to COVID-19.

This benefit would provide $1,250 per month for eligible students or $2,000 per month for eligible students with dependents or disabilities.

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.

The government is 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.

The government of Canada will provide a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19.

The Government of Canada 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.

Canada Government is supporting women and children fleeing violence, by providing up to $50 million to women’s shelters and sexual assault centers, including facilities in Indigenous communities, to help with their capacity to manage or prevent an outbreak in their facilities.

The Government have invested $350 million to support vulnerable Canadians through charities and non-profit organizations that deliver essential services to those in need.

Government announced that organizations who received funding under the 2019-2020 New Horizons for Seniors Program community-based stream will be able to use their funding to provide immediate and essential services to seniors impacted by COVID-19 and reduced the required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25 per cent for 2020.

The government is expanding existing federal employment, skills development, and youth programming to create 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.

Support for Businesses

The Canada Emergency Wage Subsidy (CEWS) supports employers that are hardest hit by the pandemic, and protect the jobs Canadians depend on.

The subsidy generally covers 75% of an employee’s wages up to $847 per week – for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May.

The Temporary 10% Wage Subsidy is a three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).

The government established a Business Credit Availability Program (BCAP) to provide additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). This program includes:

– Loan Guarantee for Small and Medium-Sized Enterprises

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

The Canada Emergency Business Account (CEBA) 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.

The government is providing $20.1 million in supporting young entrepreneurs across Canada who are facing challenges due to COVID-19. The funding will allow to provide payment relief for its clients for up to 12 months.

Small and medium-sized businesses unable to access other support measures

The government is providing $675 million to give financing support to small and medium-sized businesses that are unable to access other COVID-19 business supports, through Canada’s Regional Development Agencies.

The Government is providing $80 million for the Student Work Placement Program to support up to 20,000 post-secondary students across Canada to obtain paid work experience related to their field of study.

The Government is 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.

The Government is 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.

Visit

https://www.canada.ca/en/department-finance/economic-response-plan.html

https://www.cicnews.com/2020/03/canada-is-supporting-people-and-businesses-during-covid-19-outbreak-0313948.html#gs.63fn7m

for more information.