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Is financial relief available for my small business?

Denise O'Connell, Moneytalk Life

If you’re worried about maintaining your business during the COVID-19 pandemic, here are some of the benefits and resources that may be available to you.

Support for business owners facing unemployment

The Canada Emergency Response Benefit

For employees who may not be eligible for Employment Insurance and who are unable to work, the government has introduced the Canada Emergency Response Benefit. It provides workers who have lost their jobs or can’t work due to the COVID-19 disruption with $2,000 per month for up to four months. 

Applications will be available in April and can be completed online. The benefit will be eligible to salaried, contract and self-employed workers, as well as those who are sick, in quarantine, caring for someone who is ill or taking care of a child due to school closures. They will be able to receive the benefit regardless of whether they are eligible for traditional Employment Insurance.

Increased access to credit and financing

Federal Government Support for Canadian Businesses

Through the Canada Emergency Business Account (CEBA), Business Development Bank of Canada (BDC), and Export Development Canada (EDC), new business credit programs are making loans available to small- and medium-sized businesses who need to borrow to keep operating. On March 27, the federal government announced the Canada Emergency Business Account would guarantee a loan of up to $40,000 for qualifying businesses. The loan would be interest-free until December 31, 2022, and as much as $10,000 may be forgivable if repaid by December 31, 2022. Our online application for the Canada Emergency Business Account (CEBA) is now available; eligible TD Business Banking customers can learn more to get started.

Other mortgage and loan deferrals

As we await further details about the Government of Canada programs, we are ready to help. If your business is directly impacted by COVID-19 and you are experiencing financial hardship, you can request to defer the equivalent of up to four monthly principal payments on your business term loan and up to six months on your real estate secured business term loan. Some exceptions may apply. Please note that by deferring loan principal payments, you are not paying the loan principal, and this means you will pay more interest over the life of the loan. It's important that you understand this impact. 

To discuss eligibility for loan payment principal relief or for new credit (not related to Government of Canada sponsored programs), click apply now. You will receive an email response notifying you of the submission of your application.

Subsidies to help you avoid layoffs

Wage subsidies for small and medium-sized businesses

The government is supporting eligible small- and medium-sized businesses by subsidizing up to 75% of an employee’s wages for the next three months. This wage subsidy is retroactive to March 15th.

Enhanced work-sharing programs

If you are facing a reduction of business activities, your employees may be able to access government benefits like Employment Insurance even while continuing to work. Work-Sharing is a program that helps employers and employees avoid layoffs when there is a temporary decrease in business activity beyond the control of the employer. The program provides EI benefits to eligible employees who agree to reduce their normal working hours and share the available work while their employer recovers. The federal government has extended this plan to a total of 76 weeks and has waived the waiting period for employees to access benefits.

Tax deferrals for businesses

Tax deferrals for small and medium sized businesses

The tax filing deadline remains unchanged for corporations. However, if you owe taxes, the deadline for payment has been extended to August 31, 2020. That includes installments, penalties and interest: all of which are being waived as long as payments are made by that date. 

GST and HST payments for businesses will be deferred until June 30, 2020.

How to contact us

  • For questions related to support for customers facing financial challenges call or email your Account Manager.
  • For our Small Business customers who do not have a dedicated Account Manager, use our Find an Account Manager to locate an Account Manager near you, and call or email them directly.
  • Use our Branch Locator tool to stay up to date and find an open branch near you and book an appointment with an Account Manager, Small Business.
  • For day-to-day banking questions call our Small Business Advice Centre at 1-800-450-7318 (open 7am – 12am ET, 7 days a week). Given the high volume, you may experience longer wait times than usual.

We'll keep the conversation going

Every day we learn more, and as new government program information becomes available you can check in with us for updates on how we're responding. If we have something important to share with you, we will. In times like these, we want to be there for our customers.

DISCLAIMER: This content discusses current topics of interest in a general and informational manner only and may not be appropriate in all circumstances. Please ensure that you seek advice personalized for your situation from the appropriate professional, consultant or subject matter expert on the topic of interest to you.

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