Federal Government Covid-19 Measures – Implications for Sector Organizations
This document will be regularly updated as the federal government announces new measures that will impact the charitable and nonprofit sector.
Last updated: November 18, 2020
Measure | Who’s eligible? | Brief description | To apply / More information |
Canada Emergency Wage Subsidy (CEWS) | All eligible employers who saw a 15% drop in revenue in March and a 30% drop in revenue in April, May and June 2020. All eligible employers who saw a revenue loss, no matter the scale, in July - December 2020. Eligible employers include charities, nonprofits, social enterprises, RCAAAs, and non-public colleges and schools. (Publicly-funded hospitals, universities, colleges, and school boards are not eligible.) Have had a CRA payroll program account on or before March 15, 2020 (or used a payroll service provider who made remittances on their behalf). | General description:
Program description for periods 5 - 10 (July 5 - December 19, 2020):
Program description for periods 1 - 4 (March 15 - July 4):
| Backgrounder on extension to June 2021 How to apply for the Canada Emergency Wage Subsidy Canada Emergency Wage Subsidy extension 1 Canada Emergency Wage Subsidy Extension 2 & changes to eligibility criteria |
Canada Emergency Rent Subsidy (CERS) | Businesses, charities and nonprofits that have suffered a revenue drop Must meet one of the following criteria to be eligible: a) have a payroll account as of March 15, 2020 or have been using a payroll service provider; or b) have a business number as of September 27, 2020 and satisfy the CRA that it is a bona fide rent subsidy claim. | The program will subsidize eligible expenses related to mortgage and rent on a sliding scale up to a maximum of 65%. This rate will be in effect until December 19, 2020. Eligible expenses are limited to those paid under written agreements entered into before October 9, 2020 and include commercial rent, property taxes (including school taxes and municipal taxes), property insurance, and interest on commercial mortgages for a qualifying property, less any subleasing revenues. Expenses for each qualifying period are capped at $75,000 per location and there is an overall cap of $300,000. Organizations can apply retroactively for the period beginning September 27, 2020 and the program will run until June 2021. The subsidy will be provided directly to organizations rather than to their landlords. A top-up Canada Emergency Rent Subsidy of 25% will be available for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65 per cent subsidy. To qualify for the top-up, the following conditions must be met: i) the organization qualifies for the base CERS; ii) the public health order requires the organization to a) completely shut down the location; or, b) cease some or all of the activities at the location, and it is reasonable to conclude that the ceased activities were responsible for at least approximately 25% of revenues of the entity at that location in the appropriate pre-pandemic reference period. | Backgrounder on CERS program (November 5, 2020) |
Canada Emergency Business Account (CEBA) | Organizations with total 2019 payroll up to $1.5 million. (For organizations with 2019 total payroll lower than $20,000, they must have eligible non-deferrable expenses between $40,000 and $1,500,000.) Be a non-profit organization, registered charity, union, or a fraternal benefit society or order, or an entity owned by such an organization, that is actively carrying on a business in Canada (including a related business in the case of a registered charity) that earns revenue from the regular supply of property/goods or services. Must have an active Canada Revenue Agency (CRA) Business Number (BN) with an effective date of registration on or prior to March 1, 2020 Must have filed a 2018 or 2019 tax return with the CRA Must have an active business chequing/operating account with their primary financial institution (if do not have, must open an account) Have not previously used the CEBA program and will not apply for support under the CEBA program at any other financial institution Intend to resume operations Agree to participate in post-funding surveys conducted by the Government of Canada | Interest-free loans of up to $60,000. $20,000 of the loan will be forgiven if the loan is repaid by December 31, 2022. Loans are arranged through organizations’ regular financial institutions (must be a participating financial institution in CEBA). The application deadline is December 31, 2020. | |
Emergency Community Support Fund Please note that applications for second round of funding closed October 30, 2020 | Charities and nonprofits that deliver essential services to those in need | The federal government announced an investment of $350 million to support vulnerable Canadians through charities and non-profit organizations that deliver essential services to vulnerable populations. It will support a variety of activities, such as:
Applications for a second round of funding opened on Oct. 5 and will close on October 30, 2020. | Nonprofit organizations can apply through the Red Cross portal. Registered charities and other qualified donees can apply through the Community Foundations of Canada national portal or through their local United Way Centraide Canada.
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Emergency Support Fund for Cultural, Heritage and Sport Organizations Please note that application intake for this fund has closed | Arts, culture and sport organizations impacted by COVID-19. | A total of up to $500 million has been set aside to help alleviate the financial pressures of affected organizations. Canadian Heritage has made funds available to partner organizations, including the Canada Council for the Arts, the Canada Media Fund, FACTOR, Musicaction, and Telefilm Canada, to start distributing funds to organizations affected by the COVID-19 pandemic in the cultural, heritage and sport sectors. | |
Business Credit - SME Loan and Guarantee Program (BDC Co-lending Program) | Primarily social enterprises that meet the lending criteria | Loans of up to $6.25 million for eligible businesses. Business Development Bank is the co-lender, but loans are arranged through organizations’ financial institutions. | |
Extension of the Work Sharing Program | All employers | Maximum duration of work-sharing arrangements extended from 38 weeks to 76 weeks. | |
Deferral of GST/HST remittances | All organizations that charge GST/HST for programs, services or products | GST/HST collected for specific periods (depending on whether the organization remits monthly, quarterly, or annually) will not have to be remitted until June 30, 2020. | |
Deferral of business income tax | Social enterprises | Business income taxes scheduled to be remitted between March 18 and August 31 can be deferred until at least September 2020. | |
Deferral of T3010 filing | Registered charities | 2019 T3010 returns are not due until December 31, 2020, regardless of organization’s normal filing deadline. | |
Deferral of T1044 filing | Nonprofit corporations | Information returns otherwise due between March 18 and May 31 2020 can be filed on June 1. | (Listed as “Information returns - Other information returns”) |
Deferral of T2 filing | Any organizations that file a T2 corporate income tax return | Any returns otherwise due between March 18 and May 31 can be filed on June 1. | (Listed under “Corporations – Due Dates”) |
Delaying Annual General Meetings | Federally incorporated charities and nonprofits | Organizations unable to hold virtual AGMS, or those that do not wish to, can submit an online form to Corporations Canada to delay their AGM beyond the normally required date. | |
Regional Relief and Recovery Fund | Businesses, organizations and communities | Charities and nonprofits in some parts of the country will be able to get money to cover operating costs through the Regional Relief and Recovery Fund. The regional development agencies (plus Community Futures) are administering the Fund, and each development agency is putting its own rules on the funding.
In October 2020, the Government announced $600 million in additional funding for the regional relief and recovery fund. | |
Support for food banks and local food organizations Please note the second application intake period for the Local Food Infrastructure Fund has been put on hold until January 3, 2021 | National, regional, and local food banks and local food organizations across Canada | Funding will be delivered through the Government of Canada’s Local Food Infrastructure Fund. $100 million investment divided as follows:
Eligible activities for this new funding include the purchase of food, support for the transportation and distribution of food, hiring temporary help to fill volunteer shortages, and activities to implement biosecurity measures, such as the purchase of personal protective equipment, to reduce the spread of COVID-19 among volunteers and clients. | |
Support for women’s shelters and sexual assault centres | Women’s shelters and sexual assault centres | The government will provide up to $50 million to women’s shelters and sexual assault centres, including facilities in Indigenous communities, to help with their capacity to manage or prevent an outbreak. The government is currently working to ensure organizations receive the funding as soon as possible. Eligible organizations will be contacted directly the first week of April. | |
Support for seniors, youth, and those experiencing homelessness | Local organizations supporting seniors and those experiencing homelessness as well as organizations delivering youth mental health services | The Government of Canada contributed $9 million through United Way Canada for local organizations to support practical services to Canadian seniors. These services could include the delivery of groceries, medications, or other needed items, or personal outreach to assess individuals’ needs and connect them to community supports. The funding for seniors will be delivered through the New Horizons for Seniors Program. The Program supports projects that help improve the well-being and quality of life of seniors, and fosters social inclusion and engagement of Canadian seniors in their communities. | |
Temporary Wage Subsidy for Employers Please note that this program has now ended | Charities, nonprofits, Canadian controlled private corporations eligible for the small business deduction. | Up to 10% of payroll costs incurred between March 18 and June 19. Maximum claim of $1375 for each employee. Maximum claim of $25,000 per employer. Employer calculates the subsidy, subtracts from the personal income taxes it remits to the federal government on behalf of employees. | |
Canada Emergency Commercial Rent Assistance Please note that this program has now ended | Small businesses, including nonprofits and charities Organizations that own properties are landlords themselves and would like to provide rent reductions | This program will lower rent by 75% for small businesses that have been affected by COVID-19.
Applications opened on May 25, 2020. The program ended at the end of September 2020, although existing approved applicants have until October 30, 2020 to apply for the final September 2020 extension. | |
Canada Emergency Response Benefit Please note that this program has now ended | Workers who: Reside in Canada, who are at least 15 years old; Who have stopped working because of COVID-19 and have not voluntarily quit their job or are eligible for EI regular or sickness benefits; Who had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and Who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment or self-employment income. | If you have stopped working because of COVID-19, the Canada Emergency Response Benefit (CERB) may provide you with temporary income support. The CERB provides $500 a week for up to 28 weeks.
To begin the application process, you’ll need to answer a few simple questions. The answers you provide will direct you to the service option that best fits your situation. The CERB ended on September 26. In August, the Government announced a plan to transition away from the CERB. Those who were receiving the CERB may be eligible for EI through an expansion of the program or for one of three recovery benefits. | |
Canada Student Service Grant Program Please note that this program was cancelled | Nonprofits and charities are eligible to participate and receive students. Current postsecondary students and recent graduates are eligible to receive the Canada Student Service Grant. | The program aims to provide valuable experience to postsecondary students and new graduates at a time when job opportunities are limited while also providing support to charities and nonprofits, many of which are seeing an increase in demand for services due to the pandemic. Students may receive between $1,000 and $5,000 to recognize their service. Nonprofits and charities wishing to participate can register their organization and post opportunities that meet the following criteria - the service opportunity must:
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Surplus Food Rescue Program Please note that this program has ended | Not-for-profit and for-profit organizations including community or charitable organizations, Indigenous groups, cooperatives, and regional and municipal governments and agencies (can include schools or school boards) | The Surplus Food Rescue Program is a time-limited program to help manage and redirect existing surpluses to organizations addressing food insecurity and to avoid food waste. It will provide an opportunity for non-profit and for-profit organizations across the supply chain to bid on significant volumes of surplus products at the cost of production or less, processing them where necessary for longer shelf life and distributing to food serving agencies. Applicants under this program may be eligible to receive a maximum of $20 million unless the organization can make a case to move commodities in all categories. All applications will be accepted until funds are fully committed or until July 31, 2020, whichever comes first. Extensions may be made if required to meet program objectives. Project activities must be completed by September 30, 2020. |
