Issues

COVID-19

The Issue

The novel coronavirus (COVID-19) has affected international trade and global economies on a massive scale. Rapid and coordinated action by the federal and provincial governments is required to ensure businesses can survive through this global pandemic.

Please refer to COVID-19: Resources for Business for up-to-date information.

Our Position

The Saskatchewan Chamber of Commerce, in partnership with local chambers and many provincial business groups, conducted a survey on March 16 and 17, 2020. There were over 1000 responses from across the province. The SCC recommended immediate action by government in the following areas could help offset business challenges:

• Fiscal and Monetary Stimulus
• Immediate Action to Support Workers & Self-Employed
  • Eliminate standard one-week waiting period; grant self-employed persons access to EI for a certain period of time; extend Work Sharing Program; extend or temporarily eliminate the length of time an individual can remain on EI; and offer some form of support for parents at home providing childcare in light of school closures.
• Allow layoffs  without termination
  • Amend layoff policy under the Saskatchewan Employment Act to allow for temporary layoffs of up to  eight weeks on a specific period without requiring notice or payment in lieu, similar to Manitoba.
• Expand Credit and Loan Access to Business
  • Provide quick turnaround, low or no interest loans to businesses to ensure they have enough cash flow to sustain them during dramatic revenue loss. Greater use of the Federal Canada Small Business Loan program facilitated by local credit unions and banks will mean easier transactions.
• Ensure Access to Products
  • Clearly define international border rules for incoming transport drivers to ensure the sustained flow of goods, while maintaining effective public health and safety protocols.
• Extend Tax or Bill Payment Deadlines
  • All levels of government should extend all tax payment deadlines to reflect the current situation and to better enable businesses to preserve short-term cash flow.

Recommendations

Actions To Date

1. Fiscal and Monetary Stimulus 

• Federal Government Actions to Date:
  • On March 27, 2020, Bank of Canada further reduced its benchmark rate by 50 basis points from 0.75% to 0.25% and purchased $5 billion worth of Government Canada bonds as an emergency measure.
  • On March 18th, announced $82 billion stimulus – $27 billion in direct support to workers and business, $55 billion to meet liquidity needs.
  • Office of the Superintendent of Financial Institutions (OSFI), a federal agency announced added $300 billion in lending capacity for major banks.
  • Bank of Canada has begun commercial paper (short-term, unsecured corporate debt instruments) purchase program to restore funding for businesses. Program will begin in April 2020 and operate for 12 months.
  • Bank of Canada will begin acquiring federal government securities and bonds in the secondary market at a minimum of $5 billion per week.  
• Provincial Government Actions to Date:
  • On March 18^th Province tabled partial budget for 2020-2021 (expenditures only) totalling $14.5 billion in expenditures with $2.7 billion capital plan to stabilize and stimulate the economy. Minister of Finance is anticipating a deficit.   

2. Immediate Action to Support Workers & Self-Employed

• Federal Government Actions to Date:
  • Temporary supports for workers without paid sick leave (or similar workplace accommodation) who are sick, quarantined, or forced to stay home to care for children include: 
    • Waiving one-week waiting period for those in imposed quarantine that claim EI sickness benefits. Temporary measure is in effect as of March 15, 2020. Requirement to provide medical certificate is waived.
    • On March 25, the federal government announced Canada Emergency Response Benefit (CERB) – a lump sum, taxable benefit of $2000 for every four weeks eligible, to a maximum of 16 weeks (4 months) between March 15 (retroactive) to October 3, 2020.
      • CERB was the result of streamlining the previously announced Emergency Care Benefit and Emergency Support Benefit; covers those who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, and working parents who must stay home without pay to care for children who are sick at home.
      • Applies to wage earners, contract workers, and self-employed persons who are residents of Canada at least 15 years of age who would not otherwise be eligible for EI. By law, one is eligible if they had at least $5000 in income from work (employment or self-employment); EI maternity or parental benefits; AND have no income from employment, self-employment, any EI benefit for at least 14 days in a row in a four week period beginning April 6, 2020.
      • CRA has staggered the application process based on an applicant’s birth month. If the applicant was born in either January, February, or March, they are expected to apply on a Monday; if they were born in either April, May, or June, they should apply on Tuesday; if they were born in July, August, or September, they should apply on Wednesday; if their birthday is in October, November, or December, apply on Thursdays. Those born during any month are free to apply on either Fridays or weekends.
      • The CRA online portal for the CERB opened on April 6, 2020. Applicants who have successfully enrolled into the CERB and have submitted a completed application will see the funds in 3-5 days if they have direct deposit set up with CRA; those who do not have direct deposit set up should see a cheque in the mail in about 10 days’ time after submitting their application.
      • Anyone who applied for EI after March 15th will be automatically enrolled in and will eventually receive the CERB. Applicants are not required to do anything here.
      • Eligibility has been expanded under the CERB to allow applicants to work up to 10 hours per week and still receive the benefit. This change was meant to assuage the concerns of gig economy workers, like freelancers, contractors, etc.
      • To accommodate freelancers, contractors, seasonal workers, and others who work on a part-time or casual basis and who need income support, the CERB will allow people to earn up to $1,000 per month while collecting the benefit. Both seasonal and non-seasonal workers who have exhausted their EI regular benefits and are unable to undertake their usual seasonal work as a result of COVID-19 are now eligible for the CERB.
      • Federal government, in conjunction with provinces and territories will cost share a temporary top-up of the salary of essential workers who make less than $2500 per month. The federal government will provide up to $3 billion in support to increase the wages of low-income essential workers. Each province or territory will determine which workers would be eligible for support, and how much support they will achieve.
      • For the Canada Summer Jobs Program, the federal government will now offer to subsidize 100% of student wages hired by employers through the program on a temporary basis. The timeframe for the program has been extended to winter and workers can be hired on a part-time basis.
  • Long-term supports for workers who lose their jobs or faced reduced hours resulting from COVID-19 include:
    • • Work Sharing Program, which provides EI benefits to workers who agree to reduce their normal working hours as a result of circumstances beyond their employer’s control. Extends agreement eligibility to 76 weeks. The mandatory waiting period has also been waived so that employers with a recently expired agreement may immediately apply for a new agreement, without waiting between applications and ease Recovery Plan requirements for the duration of the WS agreement. The Federal Government has also created temporary special measures for the forestry, steel, and aluminum sectors as well.

3. Allow for Layoffs Without Termination

Amend layoff policy under the Saskatchewan Employment Act to allow for temporary layoffs of up to eight weeks on a specific period without requiring notice or payment in lieu, similar to Manitoba.

• Provincial Government Actions to Date:
  • On March 20, 2020, changes to the employment standards regulations under the Saskatchewan Employment Act introduced new unpaid public health emergency leave and removed 13-week employment requirement for workers to access sick leave, along with removing the requirement of a doctor’s note. The regulations were amended to:
    • Ensure that during a public emergency, businesses will not have to provide notice or pay in lieu notice when they have to lay of staff if it is a for a period of 12 weeks or less in a 16-week period; and 
    • If an employer lays off employees periodically for a total of more than 12 week in a 16-week period, employees are considered to be terminated and are entitled to pay instead of notice per the Act. 
    • Employees would now have immediate access to EI benefits, while keeping employers financially stable to ensure employees have job to return to later on.
• On May 20, 2020, the Province further amended the Employment Standards Regulations revising provisions around temporary layoffs, group termination notices, and public health emergency leave
  • During the entire public emergency period, employers and employees are exempt from the provisions of the Saskatchewan Employment Act and employees are not entitled to rely upon the layoff provisions of the Act. Employers and employees now continue to be exempt from the layoff provisions of the Act for an additional two weeks from the date on which the public emergency period is no longer in effect
  • An employer must have scheduled any laid off employees back to work by the end of the two-week period. If any employees have not been scheduled back to work at the end of the two-week period, those employees are considered terminated and entitled to pay in lieu of notice to be calculated from the original date on which the employer laid off the employees.
  • If any employees scheduled to go back to work do not return to work, those employees are deemed to have resigned. This can impact their eligibility for federal benefit programs
  • Should a group termination occur during a public emergency period, employers are exempt from providing the required notice to both terminated employees and to the union (if applicable). However, employers must provide notice to the Ministry of Labour Relations and Workplace Safety as soon as reasonably possible after the group termination.
• • On May 20, 2020, the Province further amended the Employment Standards Regulations revising provisions around temporary layoffs, group termination notices, and public health emergency leave.
    • During the entire public emergency period, employers and employees are exempt from the provisions of the Saskatchewan Employment Act and employees are not entitled to rely upon the layoff provisions of the Act. Employers and employees now continue to be exempt from the layoff provisions of the Act for an additional two weeks from the date on which the public emergency period is no longer in effect.
    • An employer must have scheduled any laid off employees back to work by the end of the two-week period. If any employees have not been scheduled back to work at the end of the two-week period, those employees are considered terminated and entitled to pay in lieu of notice to be calculated from the original date on which the employer laid off the employees.
    • If any employees scheduled to go back to work do not return to work, those employees are deemed to have resigned. This can impact their eligibility for federal benefit programs.
    • Should a group termination occur during a public emergency period, employers are exempt from providing the required notice to both terminated employees and to the union (if applicable). However, employers must provide notice to the Ministry of Labour Relations and Workplace Safety as soon as reasonably possible after the group termination.

  Amendments to public health emergency leave applies to employees required to provide care and support to an employee’s adult family member affected by a public health order issued by the provincial Chief Medical Health Officer; amendments establish that the opinion of a duly qualified medical practitioner, the government of Saskatchewan, or the Chief Medical Health Officer will prevail should there be a conflict of opinion between an employer and a medical practitioner;  confirms that public health emergency leave does not apply to employees who have been informed by their employers in writing that they are necessary to provide critical public health and safety services.

4. Expand Credit and Loan Access to Businesses

Provide quick turnaround, low or no interest loans to businesses to ensure they have adequate cash flow to sustain them during dramatic revenue losses. Greater use of the Federal Canada Small Business Loan program facilitated by local credit unions and banks will ensure for easier transactions.

Federal Government Actions to Date:

• • On March 27, 2020, federal government announced the Canada Emergency Wage Subsidy (CEWS) estimated at $73 billion. The Federal government will now pay 75% of employee remuneration (up to a salary of $58,700 or $847 weekly, whichever is less) for businesses, like sole proprietors, partnerships, corporation, non-profits, and charities who have experienced a 15% or greater decrease in gross revenue for March, and a 30% or greater decrease for April and May. 
    • On May 15, the federal government announced regulatory and legislative changes to extend eligibility to additional groups. This includes partnerships with one or more non-eligible members, Indigenous-owned government businesses, registered amateur athletic organizations, registered journalism organizations, non-public education and training institutions, support for seasonal employees and those coming back from extended leave, corporate amalgamations, and tax-exempt trusts. The changes are retroactive to April 11, 2020, which means that it applies to the first qualifying period starting March 15, 2020 and subsequent qualifying periods.
    • Eligible businesses must prove they have already paid employees’ wages. The remuneration time period is between March 15 – June 6, 2020. Claim periods include March 15-April 11 (March 2020 over March 2019); April 12 – May 9 (April 2020 over April 2019); and May 10 – June 6 (June 2020 over June 2019). Eligible businesses must reapply to CRA each month.
    • Businesses can compare their March 2020 revenue to those in January and February 2020 instead of March 2019 to offer flexibility to start-ups and pre-commercial businesses. Eligible businesses have the option of using either cash or accrual-based accounting.
    • Non-profits and registered charities have been granted increased flexibility can choose to include or exclude any public funding when calculating their own revenue losses for the program to increase eligibility.
    • No cap on the number of employees per employer that may be eligible. The federal government encourages (but does not require) those businesses who have the ability to top up remaining 25% of a worker’s wages to do so.
    • Eligible employers can claim both the CEWS and the earlier, less generous 10% wage subsidy (referenced later in this section), however the 75% subsidy is reduced by the amount of the
    • Eligible businesses can apply online either through the CRA’s My Business Account online portal or over the phone through an automated voice service. CRA online portal is expected to be open on April 27, 2020 and the triaging of applications is tentatively scheduled to begin May 5, 2020.
    • Expansion of CEWS by introducing a new 100% refund for certain employer paid contributions to EI and CPP; refund will cover 100% of employer-paid contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees.  
    • Because this program assumes a high degree of trust and honesty on the part of employers, there will be severe penalties for businesses who misuse the wage subsidy, including stiff fines, personal liability, for directors, and possibly imprisonment.
• The Temporary Wage Subsidy is intended to help support employers to keep their workers on payroll. The subsidy is equal to 10% of the remuneration paid from March 18 – June 19, 2020, up to $1,375 for each eligible employee and to a maximum of $25,000 total per employer.  An employer just calculates the subsidy they are eligible for and reduce their usual payroll remittance (income tax, CPP, EI) of federal or provincial income tax they send by the amount of the subsidy. In practice, this means reductions to a business’ payroll withholdings to the CRA due April 5, 2020. Because of this,  employees are not required to apply for the support.
  • • • Eligible businesses must be Canadian-controlled private corporations with more than $0 of small business limit in its last taxation year. The taxable capital employed, calculated on an associated group basis must be less than $15 million.
      • Eligible business entities include sole-proprietors, partnerships, corporations, non-profit organizations, and registered charities.
      • The 10% subsidy is taxable to the employer.
• Business Credit Availability Program (BCAP) will allow Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion additional support, largely targeted to small and medium-sized businesses.
  • Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses; post- ponement of payments for up to six months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less; and reduced rates on new eligible loans.
  • Program cap for this guarantee will be a total of $20 billion for export sector and domestic companies.
  • BCAP was expanded to cover mid-sized companies with larger financing needs. Support for mid-market businesses will include loans of up to $50 million per company, and guarantees of up to $80 million. Through the BCAP, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will work with private sector lenders to support access to capital for Canadian businesses n all sectors and regions.
• Canada Emergency Business Account (CEBA) program will provide up to $25 billion to qualifying financial institutions so they can provide interest-free loans to small businesses and non-profits.
  • Loans guaranteed are funded by the federal government and will ensure small businesses have access to the capital they need for rent and other important fixed costs over the next number of months.
  • Interest-free loans of up to $40,000 to help cover their operating costs during a period where revenues are temporarily reduced.
  • Organizations must demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019; repaying the loan balance on or before December 31, 2022 will result in loan forgiveness of 25% or up to $10,000.
  • On May 19, 2020, the federal government announced the expansion of eligibility criteria to include sole proprietors receiving income directly from their business, businesses that rely on contractors, family-owned businesses that pay their employees through dividends rather than through payroll.
  • 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 CRA 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.
• Federal government announced agreement in principle with the provinces and territories around the Canada Emergency Commercial Rent Assistance (CECRA) program that provides much-need rent relief for small businesses experiencing financial hardship due to COVID-19. The program offers forgivable loans to eligible commercial property owners so that they can in in turn, reduce their impacted small business tenant’s rent by at least 75% for the months of April, May, and June of 2020. Small businesses that opened on or after March 1, 2020 are not eligible.
  • Forgivable loans will cover 50% of gross rent (base rent plus taxes, maintenance, and insurance) owned by the impacted small business tenants during the 3-month period; of the remaining 50% of gross rent payments,  the property owner will assume no less than 25%, while the small business tenant is responsible for no more than 25%.
  • To qualify, the property owner must satisfying the following conditions: own property in Canada that generates rental revenue from commercial property located in Canada; own the commercial property where the impacted business tenants are located; have a mortgage loan secured by the commercial real property occupied buy one or more small business tenants; have entered or will enter into a rent reduction agreement for the periods of April, May, June 2020 that will reduce the impacted tenant’s rent by at least 75%; and have declared rental income on their tax return (personal or corporate) for tax years 2018 and/or 2019.
  • The rent reduction agreement with impacted tenants must include a moratorium on evictions for the 3-month period referenced above.
  • Impacted small business tenants include businesses, non-profits, and registered charities who: pay no more than $50,000 in monthly gross rent per location; generate no more than $20 million in gross annual revenues calculated at the parent company level; and have temporarily ceased operations (generating no revenues), or has experienced at least a 70% decline n pre-COVID-19 revenues.
  • Small businesses can measure revenue loss by comparing April, May and June 2020 to the same month in 2019. They can also use an average of their revenues earned in January and February 2020.
  • Properties with or without a mortgage are eligible under CECRA for small businesses.
  • Program will be administered by CMHC on behalf of the federal government, in conjunction with the provinces and territories. Program offers assistance for April, May, and June 2020 and can be applied retroactively. Property owners may still apply for assistance once 3-month period has ended and can prove eligibility. In this case, property owners must refund amounts paid by the small business tenant for that period.
  • The application portal for the CECRA opens on May 25, 2020 8:00 am EST. The deadline to apply is August 31, 2020.
• Small and Medium-sized Enterprise Loan and Guarantee Program will enable up to $40 billion in lending, supported through EDC and BDC for guaranteed loans intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements. This progrm has two streams:
  • New Co-Lending Program will bring BDC together with financial institutions to co-lend term loans to SMEs for operational cash flow requirements; eligible businesses may obtain incremental credit amounts of up to $6.25 million through the Program, 80% of which would be provided by BDC, with the remaining 20% by a financial institution.
  • EDC will also provide funding to financial institutions so they can issue new operating credit and cash flow term loans of up to $6.25 million to SMEs as a result of a new mandate enhancing EDC’s role in supporting Canadian businesses through COVID-19; loans will be 80 per cent guaranteed by EDC, to be repaid within one year.
• Regional Development Agencies (RDA) are offering additional funding and/or flexible arrangements to tourism operators, SMEs, and organizations receiving RRDA funding. The RDA for western Canada is Western Economic Diversification Canada (WD) and their phone number is 1-888-9378.
  • On April 17, 2020, federal government announced the following targeted measures through Canada’s RDAs – $675 million in financing support to SMEs that are unable to access the federal government’s existing COVID-19 support measures; and $287 million to support rural businesses and communities mainly by providing them some much-needed access to capital through the existing Community Futures Network. 
• A total of $304 million will be available for western Canadian businesses to support those economically impacted by the COVID-19. For example, for SMEs in the tourism sector that have been severely impacted by COVID-19 and are, in some cases, ineligible for other federal programs.
• For businesses that do not qualify for the CEBA program or the Community Futures Emergency Loan program, the RRRF will support affected businesses in two ways by:
  • Providing up to $40,000 in repayable contributions to businesses that are not eligible to access other federal support programs. Businesses that receive funds from the RRRF and repay 75% of the contribution (up to $30,000) on or before December 31, 2022 will result in forgiveness of 25% of the contribution (up to $10,000).
  • Providing up to $1 million in repayable contributions to businesses that can demonstrate a meaningful contribution to the western Canadian economy and are experiencing liquidity issues.
  • Eligibility criteria can be found here.
• Changing Canada Account so Minister of Finance can determine the limit of the Account to best deal with exceptional circumstances. Account is administered by EDC and is used to support exporters when deemed to be in the national interest.
• On March 23, 2020, Farm Credit Canada (FCC) will receive support from the federal government that will allow for an additional $5 billion in lending capacity to producers, agribusinesses, and food processors.
  • All eligible farmers with an outstanding Advance Payments Program loan due on or before April 30 will receive a Stay of Default, allowing them an additional six months for repayment; new deadlines for outstanding Advance Payments Program loans are as follows: September 30, 2020: 2018 cash advances for grains, oilseeds, and pulses; September 30, 2020: 2018 cash advances for cattle and bison; and October 31, 2020: 2019 cash advances on flowers and potted plants.
  • Applicable farmers who still have interest-free loans outstanding will have opportunity to apply for an additional $100,000 interest-free portion for 2020-2021, as long as their total APP advances remain under the $1 million cap.
  • On April 17, 2020, federal government announced targeted supports for the energy sector. These include the following:
    • Providing up to $1.72 billion worth of funding to the governments of Alberta ($1billion), Saskatchewan ($400 million), British Columbia ($120 million), and $200 million to the Alberta Orphan Well Association to clean up orphaned or inactive gas wells.
    • Providing up to $750 million to create a new proposed Emissions Reductions Fund to reduce emissions in the oil and gas sector, with a focus on methane; fund will provide repayable contributions to conventional and offshore oil and gas firms to support investments in GHG emissions reductions. Seventy-five million dollars will be allocated to offshore oil and gas (Newfoundland and Labrador).
    • Expanding eligibility for the new Business Credit Availability program to help businesses get the financing they need during this crisis. Support will be available to medium-sized energy companies with large financing needs to help maintain operations and keep workers on payroll.
  • $500 million to establish a COVID-19 emergency support fund for cultural, heritage, and sports organizations to help address the financial needs of those affected within these sectors with the goal of supporting artists and athletes’ wages and fixed costs. This support was created in response to concerns that workers and organizations operating in these sectors were not eligible for existing income supports.
  • $250 million to assist innovative, early-stage companies that are unable to access the existing suite of COVID-19 business supports through the National Research Council of Canada’s Industrial Research Assistance Program.
  • $20.1 million to support young entrepreneurs across Canada who are facing challenges due to COVID-19. This support will be administered through Futurpreneur Canada and will allow Futurpreneur to provide relief payments for its clients for up to 12 months. Details to follow.
  • On April 18, 2020, the PM announced support for Indigenous businesses worth about $307 million in funding – targeted at 6,000 small and medium-sized Indiegenous businesses and Indigenous financial institutions.
    • Financial support for Indigenous businesses will be provided through Aboriginal Financial Institutions and administered by the National Aboriginal Capital Corporations Association and the Métis capital corporations, in partnership with Indigenous Services Canada.
    • Funding will allow for interest-free loans, as well as non-repayable contributions, to help Indigenous businesses unable to access the government’s existing COVID-19 support measures. Additional funding will help Aboriginal Financial Institutions cover operational expenses and help the National Aboriginal Capital Corporations Association increase its operational capacity.
  • On April 21, 2020, the federal government announced the Emergency Community Support Fund, an investment of $350 million to support vulnerable Canadians through charities and non-profit organizations that deliver essential services to those in need. Investment will flow through national organizations that have the ability to get funds quickly to local organizations that serve vulnerable populations. Specific activities include:
    • • Increasing volunteer-based home deliveries of groceries and medications.
      • Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointment.
      • Scaling up help lines that provide information and support.
      • Helping vulnerable Canadians access government benefits.
      • Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response.
      • Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet.
      • Charities and non-profit organizations are also able to apply for the 75% wage subsidy while receiving this support.

• On April 25, federal government announced the creation of the Canadian Seafood Stabilization Fund, a $62.5 million fund to help businesses access short-term financing to pay for maintenance and inventory costs, add storage capacity for unsold product, and comply with new health and safety measures for workers. Specific measures include the following:
  • New manufacturing/automated technologies to improve productivity and quality of finished seafood products, as well as adapt products to respond to changing requirements and new market demands.
  • The fund will be delivered through the Atlantic Canada Opportunities Agency, the Canada Economic Development for Quebec Regions, and Western Economic Diversification Canada.
  • Details on when and how to apply are forthcoming.
• On May 14, 2020, the federal government announced up to $469.4 million in new measures to support Canada’s fish harvesters who cannot access existing federal measures. This investment builds on the $62.5 million for the new Canadian Seafood Stabilization Fund announced last month to help Canada’s fish and seafood processing sector. Specific measures include the following:
  • Launching the Fish Harvester Benefit, a program worth up to $267.6 million, to help provide income support for this year’s fishing seasons to eligible self-employed fish harvesters and sharespersons crew who cannot access the CEWS. Support will be provided to those that experience fishing income declines of greater than 25% in the 2020 tax year, compared with a reference period to be identified. This measure covers 75% of fishing income losses beyond a 25% income decline threshold, up to a maximum individual entitlement equivalent to what is provided under the Canada Emergency Wage Subsidy ($847 per week for up to 12 weeks).
  • Launching the Fish Harvester Grant, a program worth up to $201.8 million, to provide grants to help fish harvesters impacted by the COVID-19 pandemic, and who are ineligible for the CEBA or equivalent measures. This will give them more liquidity to address non-deferrable business costs. The program would provide non-repayable support of up to $10,000 to self-employed fish harvesters with a valid fishing licence. Size of the non-repayable support will vary depending on the level of fish harvesters’ historic revenue.
  • Propose measures or changes to EI that would allow self-employed fish harvesters and sharespersons to access EI benefits on the basis of insurable earnings from previous seasons (winter and summer claims).

• • On May 5, 2020, the federal government announced important measures within agriculture programs and an investment of more than $252 million to support farmers, food businesses, and food processors who provide essential services. The federal government also announced it intends to propose an additional $200 million in borrowing capacity for the sector. Targeted support to farmers, ranchers, agricultural producers, and food processors include:
    • Creating a $77.5 million Emergency Processing Fund to help food producers access more PPE, adapt to health protocols, automate or modernize their facilities, processes, and operations, as well as respond to emerging pressures from COVID-19.
    • Launching national AgriRecovery initiatives of up to $125 million in funding to help producers faced with additional costs incurred by COVID-19. This includes set-asides for cattle and hog management programs to manage livestock backed-up on farms, due to the temporary closure of food processing plants. Federal funding will help beef and pork producers and processors adapt to a changing market, and help farmers and ranchers keep their animals longer before marketing.
    • Announcing an increase in the Canadian Dairy Commission’s borrowing limit by $200 million to support costs associated with the temporary storage of cheese and butter. Federal government will work with opposition parties around required legislative change.
    • Launching a first-ever Surplus Food Purchase Program with an initial $50 million fund designed to help redistribute existing and unsold inventories to local food organizations.
• Working with provinces and territories to increase interim AgriStability payments from 50% to 75%. The enrolment deadline for 2020 has been extended to July 3, 2020. BC, Quebec, Saskatchewan, PEI, and Alberta have all already agreed to the 75% AgriStability interim payment.
• On May 11,2020, the federal government announced its intention to establish a Large Employer Emergency Financing Facility (LEEFF) to provide bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing. Terms and conditions include the following:
  • LEEFF program will be open to large for-profit businesses – with the exception of those in the financial sector – as well as certain not-for-profit businesses, such as airports, with annual revenues generally in the order of $300 million or higher.
  • To qualify for LEEFF support, eligible businesses must be seeking financing of about $60 million or more, have significant operations or workforce in Canada, and not be involved in active insolvency proceedings. Broader sectoral dynamics for LEEFF applicants will be considered through processes led by ISED.
  • Companies seeking support must demonstrate how they intend to preserve employment and maintain investment activities. Recipients will need to commit to respect collective bargaining agreements and protect workers’ pensions. The LEEFF program will require strict limits to dividends, share buy-backs, and executive pay.
  • In considering a company’s eligibility to assistance under the LEEFF program, an assessment may be made of its employment, tax, and economic activity in Canada, as well as its international organizational structure and financing arrangements; program will not be available to companies that have been convicted of tax evasion
  • Recipient companies would be required to commit to publish annual climate-related disclosure reports consistent with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures.
  • Financing is intended to be applicable to all eligible sectors in a consistent manner to ensure fairness.
• LEEFF will be delivered by the Canada Development Investment Corporation (CDEV), in cooperation with Innovation, Science and Economic Development Canada (ISED) and the Department of Finance.
• On May 16, 2020, the federal government announced it will provide $15 million in additional funding to support women entrepreneurs through the Women Entrepreneurship Strategy (WES). This money will go directly to select organizations that are currently WES Ecosystem Fund recipients and will help women entrepreneurs through the COVID-19 pandemic.
• The Canadian Business Resiliency Network, an organization created by the Canadian Chamber of Commerce, in partnership with the Government of Canada, announced the Small Business Relief Fundto help 62 small Canadian businesses recover and support their resilience, for a total of $620,000 in funds.
  • Businesses can use the $10,000 grants to support their recovery efforts, including paying salaries, acquiring safety and personal protective equipment for staff, replenishing materials, or paying for the measures required to adapt business models to the economic impacts of COVID-19
  • Eligible businesses must satisfy the following eligibility criteria: be a for-profit company; have between 2 and 50 employees; have been in business for two years as of March 1, 2020; have an annual revenue between $150,000 CAD and $5,000,000 CAD; have been negatively affected by the COVID-19 pandemic; and meet the other eligibility criteria set out in the program’s terms and conditions.
  • Business can apply for a grant for on the Canadian Business Resiliency Network from June 1 to June 12, 2020. Applications must demonstrate how being a grant recipient would help your business recover from the COVID-19 pandemic and support its resilience.
  • Successful applicants will be announced in late June to early July 2020, with the funds being transferred to the successful applicants shortly thereafter.
  • The Canadian Business Resiliency Network announced the Business Resilience Service. The service is a telephone hotline that allows small and medium-sized businesses, non-profits, and charities to connect with experienced business advisors from across Canada for guidance on which government relief programs will be most appropriate for support.
    • The program will be delivered free of charge and provides Guidance on COVID-19 financial support program options and eligibility; direction on accessing the most appropriate support organizations; help to make decisions to support recovery plans; and offers real time insights and feedback back to policymakers
    • To access the BRS, call 1-866-989-1080 to connect with a business advisor from the accounting profession. The service is available 7 days/week from 8am – 8pm ET (5am – 5pm PT).
• The BRS is run through the Business Resilience Network in partnership with EY and with support from CPA Canada and Imagine Canada. The program, will be provided for four weeks from Monday, May 25, and involves support from approximately 125 business advisors from across the accounting profession.

Provincial Government Actions to Date:

• On April 9, 2020, the Province announced small businesses will receive additional support to help deal with COVID-19 related cashflow challenges through the new Saskatchewan Small Business Emergency Payment (SSBEP).
  • The $50 million program will provide financial support to small and medium-sized businesses that have had to temporarily close or significantly curtail operations as a result of the COVID-19 pandemic.
  • SSBEP provides one-time grant for SMEs directly affected by public health orders related to COVID-19. Grants will be paid based on 15% of a business’ monthly sales revenue, to a maximum of $5,000.
  • Eligible business must have been fully operational on February 29, 2020; have ceased or curtailed their  operations as a result of the COVID-19 public health order; have less than 500 employees and commit to reopening business operations following the cancellation of the COVID-19 public health order; and have not received any payments or amounts from any other source, including insurance, to replace or compensate for the loss of revenue other than amounts from other government assistance programs. The grant is not dedicated to specific cost pressures.
  • Businesses that are still permitted to operate and are considered “critical public services to address COVID-19” or are allowable business services are not eligible to receive benefits under this program.
  • The deadline to apply is on or before July 30, 2020. The Province’s targeted turnaround time is to make payment within 5 business days of applying. The Ministry of Finance is responsible for administering the program, while the Ministry of Trade and Export Development is responsible for program policy and development.
  • Government of Saskatchewan will request the federal government exempt the SSBEP from business income for tax purposes.
  • The province announced extension to the SSBEP program to the month of May for business required to remain close or substantially curtail operations after May 19, 2020. Eligible applications will receive a payment of 15% of their sales revenue from April 2019 or February 2020, up to $5,000 per eligibility period, to help businesses with expenses including fixed costs such as rent.
  • On May 15, 2020, the federal government announced $450 million in funding to help Canada’s academic research community, many of whom are unable to access existing COVID-19-related support measures. These investments will:
    • Provide wage supports to universities and health research institutes so they can retain research staff who are funded from industry or philanthropic sources. This would apply even if their work has been temporarily suspended. The government will provide up to 75% per individual, with a maximum of $847 per week.
    • Support universities and health research institutes to maintain essential research-related activities during the crisis, and to ramp back up to full research operations once physical distancing measures are lifted. This will cover up to 75% of total eligible costs and will support activities such as the safe storage of dangerous substances and restarting data sets that were interrupted during the pandemic.
• On May 22, 2020, the Province announced the Accelerated Site Closure Program (ASCP) for the abandonment and reclamation of orphaned and inactive oil and gas wells. The ASCP will access up to $400 million over two-years through the federal government’s COVID-19 Economic Response Plan.
• Under the ASCP, eligible licensees (operators) will use the integrated resource information system to nominate inactive wells and facilities into the program; each licensee will be assigned a portion of planned expenditures, based on their share of total provincial liabilities for inactive wells. All contracting for services will take place between eligible licensees and service companies.
• ASCP will be rolled out in several phases, with the funding component of the program administered by the SRC. Phase one will allocate up to $100 million in funding to contracted Saskatchewan service companies
• The program will be overseen by the Ministry of Energy and Resources and delivered in partnership with the Saskatchewan Resource Council (SRC). The SRC will provide technical expertise and engineering oversight and will procure services from eligible oilfield services companies.
• The program will support 2,100 full-time equivalent jobs in the oil and gas services industry and will support reclamation and abandonment of up to 8,000 inactive wells.

 

5. Ensure Access to Products

Clearly define international border rules for incoming transport drivers to ensure the  sustained flow of good, while also maintaining effective public health and safety protocols.

• Federal Government Actions to Date:
  • On March 21, the Canada-US border was restricted to essential or urgent travel only. This will go in effect midnight March 21, 2020 Those transporting essential goods like food and medical supplies are expected to be exempt from mandatory 14-day self-isolation period. Anecdotal reports suggest confusion around how it’s being implemented on the ground.
    • Exemptions to air travel restrictions apply to foreign nationals already committed to working, studying or making Canada their home; travel by these individuals will be considered essential travel for land border restrictions (e.g. seasonal agricultural workers, fish/seafood workers, caregivers, all other TFWs).
    • Temporary modification being made to the Labour Market Impact Assessment process for agriculture and food processing employers; required 2-week recruitment period will be waived for the next 6 months.
    • Federal Government is increasing maximum allowable employment duration for workers in the low-wage stream of the Temporary Foreign Worker Program from 1 to 2 years.
    • Federal government announced $50 million in funding to support farmers. Fish harvesters, food production and processing employers to put measures in place the measures required to comply with the mandatory 14-day isolation period of workers arriving abroad. Federal government will provide support of $1500 for each TFW to employers or those working with them are fully met. Funding is conditional upon employers not being found in violation of the mandatory 14-day isolation protocols or other public health orders. These supports will be offered as long as the Quarantine Act is in force.
    • On April 22, 2020, Federal government announced it will expand 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.
    • On May 12, 2020, the federal government announced effective immediately, a new and temporary policy that will drastically reduce the time it takes for a temporary foreign worker (TFW) to start a new job. While this policy is in place, a worker who is already in Canada and has secured a new job offer, typically backed by a labour market test, can get approval to start working in their new job, even while their work permit application is being fully processed. This will cut what can often take 10 weeks or more, down to 10 days or less.

6. Extend Tax or Bill Payment Deadlines

All levels of government should extend all tax payment deadlines to reflect the current situation and to better enable businesses to preserve short-term cash flow.

• Federal Government Actions to Date
  • Federal Government has postponed tax filing deadline for individuals and corporations until June 1, 2020. This does not apply to the Scientific Research and Experimental Development Tax Credit claim forms. The CRA has extended deadlines for T2 Corporate Income Tax Returns and T3 Trust Income Tax Returns that had been due in June, July or August. Those returns are now due September 1, 2020. As previously announced by CRA, any income tax balance due on or after March 18 and before September 1 is also now due by September 1, 2020. The deadline for trusts, partnerships, and NR4 information returns have been extended to May 1, 2020. The deadline for self-employed individuals (or those who have spouses or common-law partners that are self-employed) to pay any balance due for individual income tax and benefit returns has been extended from April 30, 2020, to September 1, 2020.
    • CRA will allow for businesses to defer, until after August 30, 2020, the payment of any income tax amounts that become owing owed after March 18, 2020 and before September 2020.
    • Taxpayers who are required by the CRA to follow up on administrative tax actions by March 18, 2020 now have until June 1, 2020 to do so. Such actions include filing tax returns, elections, designations, and information requests.
• The CRA will allow all businesses to defer, until the end of June 2020, any GST/HST payments or remittances that become owing on or after March 27, 2020, and before June 2020. This means that no interest will apply if your payments or remittances are made by the end of June 2020.
• • Payment deadline for customs duties on imports deferred to June 30, 2020 for March, April and May statements of accounts; deferrals the equivalent of providing up to $30 billion in interest-free loans to businesses to help ease cash-flow challenges.
    • A 45-business day grace period for late accounting penalties applied against importers when they do not submit required accounting declarations within specific timeframes (transactions released March 11 – May 14, 2020.
    • A 30-day extension to the 90-day period for submitting corrections of errors found by CBSA trade compliance verification.
    • Imported goods for emergency use duty and tax relief on the importation of goods required for an emergency by or on behalf of federal, provincial or municipal entities involved.
  • CRA will not contact any small or medium-sized enterprises to initiate any post-assessment GST/HST or income tax audits until at least the end of April 2020.  For the vast majority of businesses, CRA will temporarily suspend audit interaction with taxpayers and representatives.
  • Parks Canada will help tourism-related businesses operating in national parks and historic sites deals with impacts of COVID-19 by deferring commercial leases and licenses of occupation payments without interest until September 1, 2020. Parks Canada is contacting all commercial lease and license holders in national parks, historic sites, and marine conservation areas to provide details on deferral.
• Provincial Government Actions to Date
  • All Crown utilities to implement zero-interest bill deferral for up to six months for residents whose ability to make bill payments may be impacted by the COVID-19 restrictions. At the end of the six-month period, the balance of regular monthly payments will be due. Collections and service disconnects are also dis-continued for this six-month period. Any balance outstanding can be paid back over the following 12-months through equal monthly installments with no additional interest charged.
  • The three-month PST remittance deferral and audit suspension begins effective immediately. Saskatchewan businesses unable to remit PST due to cashflow concerns will have relief from penalty and interest charges. Businesses unable to file provincial tax returns by due date may submit request for relief from penalty and interest charges affected.
  • On March 26, 2020, Government of Saskatchewan announced temporary suspension of most eviction hearings in province. Office of Residential Tenancies (ORT) will no longer take applications for residential evictions related to missed or late rent, only for urgent claims related to health and safety. Previous eviction orders for non-urgent matters won’t be enforced and scheduled hearings will be cancelled. Tenants who are unable to pay their rent during state of emergency will be expected to pay their rent in full once state of emergency is over,
  • On March 26, 2020, the Province temporarily suspended enforcement measures on fines for the next six months; measure is retroactively effective for March 19th; includes late payment fees, files sent to SGI related to drivers’ licence suspensions, files sent to the CRA for set off, and files sent to collection agencies. Provincial court offices no longer accepting fines payment in person.On April 14, 2020, Province announced relief measures for the energy sector. Measures include the following:
    • Extending a series of filing and other deadlines to assist the oil and gas sector in stabilizing operations, as their workers transition to working from home.
    • Extending mineral rights, scheduled to expire in 2020, by one year; includes rights granted under the terms of an oil and gas lease, exploration license or permit; extension will provide oil and gas disposition holders with the time necessary to evaluate their properties once the current situation stabilizes.
    • Reducing the industry portion of the Oil and Gas Administrative Levy by 50% this fiscal year and delaying the invoicing of the remaining balance until October 1, 2020. This will provide the sector with $11.4 million worth of relief to address immediate liquidity challenges.
    •  On April 14, 2020, Province announced relief measures for the energy sector. Measures include the following:
      • Extending a series of filing and other deadlines to assist the oil and gas sector in stabilizing operations, as their workers transition to working from home.
      • Extending mineral rights, scheduled to expire in 2020, by one year; includes rights granted under the terms of an oil and gas lease, exploration license or permit; extension will provide oil and gas disposition holders with the time necessary to evaluate their properties once the current situation stabilizes.
      • Reducing the industry portion of the Oil and Gas Administrative Levy by 50% this fiscal year and delaying the invoicing of the remaining balance until October 1, 2020. This will provide the sector with $11.4 million worth of relief to address immediate liquidity challenges.
      • Province has also reached a draft equivalency agreement with the Government of Canada on the regulation of methane reductions in the upstream oil and gas industry. This agreement fulfills an industry request to be regulated by the Province instead of the federal government.   Province has also reached a draft equivalency agreement with the Government of Canada on the regulation of methane reductions in the upstream oil and gas industry. This agreement fulfills an industry request to be regulated by the Province instead of the federal government.  
• Province has taken additional steps to reduce red tape and duplicate regulations for Saskatchewan service rig operators by signing a Memorandum of Agreement with the Canadian Association of Oilwell Drilling Contractors (CAODC), that harmonizes regulations with Alberta to support local service rig companies and their employees.
• Saskatchewan Crop Insurance Corporation (SCIC) has extended its crop insurance deadline of March 31^st to April 13, 2020.
• WCB Saskatchewan is waiving penalties and interest charges for late premium payments for April 1, 2020 until June 30, 2020. Three-month period of waived charges is similar to other Boards’ relief measures. Other measures include forgiving interest and penalties for late payments applied in the month of March; prioritizing employer payroll revisions to help customers reduce their premiums; suspending payroll audits until further notice except in situations where an employer may be eligible for a refund.