It is no longer news that a lot of businesses have been impacted negatively by the Covid-19 pandemic. The impact on the small business is alarming. Throughout this pandemic, the Government of Canada has focused on keeping Canadians safe and healthy and helping families pay their bills. For instance, the Government of Canada has introduced series of strong measures to protect middle class jobs and support businesses. The Government of Canada also announced support for small businesses. These measures ensure that more Canadians are kept on the payroll during this challenging time.
While some businesses already took advantage of the Government’s program, a lot were left out. But Government of Canada has now announced expansion to the support small businesses. With the expansion announced by the Government, more businesses will be covered. The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses. Businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll can now also qualify for the Government’s program.
How To Qualify For The Benefits
To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:
- a business operating account at a participating financial institution
- a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
- eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.
Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions.
This measure is part of the Government of Canada’s COVID-19 Economic Response Plan, which is putting Canadians and the protection of middle class jobs first.
To learn more about Government of Canada’s support for businesses, click here.
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