Written by Kelly R. Ford, James Beeby, Jesslyn Maurier, Stephen Burns, Robyn Enslen, Jai Lakhani and Ryan Moore
As described in our previous blog post, COVID-19 Pandemic-Related Economic Stimulus for Canadian Businesses published on April 8, the Canadian federal government and most provincial and territorial governments have introduced programs to provide funding or economic relief to Canadian businesses in connection with the COVID-19 pandemic. Since that publication, four new programs have been announced, as described below. A summary table with all COVID-19 pandemic-related Canadian business funding announced to date is included at the end of this blog.
Please note that this blog does not address tax deferrals or employment subsidies. For more information on these programs and any other COVID-19-related queries, please contact the authors of this blog or visit our COVID-19 Resource Centre.
BDC Capital Bridge Financing Program
The Business Development Bank of Canada (BDC) recently announced a new Bridge Financing Program offered through its investment arm, BDC Capital. Canadian start-ups that have raised at least $500,000 in external capital and that are undergoing a current financing round with qualified investors may be eligible for a debt investment in an equivalent amount by BDC Capital. Eligible businesses must be Canadian, backed by a qualified venture capital firm and be specifically impacted by COVID-19. BDC Capital's investment will be made in the form of a three-year convertible note, and is subject to BDC's due diligence and investment review process. The Bridge Financing Program is not limited to BDC's current portfolio of companies.
Small Business Working Capital Loans
The Small Business Working Capital Loans program offered by the Columbia Basin Trust provides a one-time loan of $5,000 to $25,000 on a five-year term to small businesses in interior British Columbia. Loans are interest- and payment-free for the first three months, with businesses required to make interest-only payments for the following nine months at an interest rate of 2 percent per annum, and payments on both interest and principal for the remainder of the term. The loan is for working capital purposes only and cannot be used for debt repayment or equipment purchases.
Eligible businesses must: (i) be headquartered and operating in the Columbia Basin Trust region; (ii) demonstrate sustainability; (iii) have been in operation for at least two years; (iv) not have received or applied for loan funding from any other provincial or federal program; (v) have between $150,000 and $1.5 million in revenue; and (vi) have adequate insurance coverage. Businesses must also be prepared to provide their most recent accountant-prepared financial statements and a current profit and loss statement in connection with their application. Applications for funding are made online, will be processed in the order they are received and will continue to be accepted until all funding has been committed.
Small Business Emergency Payment Program
Saskatchewan's $50-million program will provide one-time grants to small- and medium-sized Saskatchewan businesses directly affected by government public health orders, up to a maximum of $5,000 per business. Funds provided through the Small Business Emergency Payment Program are provided based on 15 percent of monthly sales revenue (calculated on monthly sales from either April 2019 or February 2020) to a maximum of $5,000. Eligible businesses must: (i) have fewer than 500 employees; (ii) have ceased or curtailed operations as a result of a public health order; (iii) have been carrying on business on February 29, 2020; and (iv) commit to re-opening business operations following the cancellation of the COVID-19 public health order. Businesses that have received payments to compensate for lost sales revenue from any source other than from governmental assistance programs are ineligible for this program.
Applications close on July 31, 2020.
Yukon Business Relief Program
The Yukon Business Relief Program provides a grant of up to $30,000 per month to Yukon businesses to cover specific fixed costs such as commercial rent or lease, utilities, and business insurance. Eligible businesses must: (i) have lost at least 30 percent of gross revenues during the COVID-19 pandemic; (ii) be based in the Yukon (based on applicable criteria); and (iii) have been an eligible Yukon business before March 1, 2020.
The program will cover between 75 percent and 100 percent of eligible fixed costs incurred from March 23 to May 22, 2020, up to a maximum of $30,000 per month. Applications close on June 30, 2020.
We will continue to provide updates as further programs are made available and additional details are released. If your business or organization has questions in respect of COVID-19 funding-related matters, please contact the authors of this blog. In addition, please visit our COVID-19 Resource Centre for other COVID-19 related resources.
|Jurisdiction||Program||Funding Maximum||Funding Type||Size of Business (if applicable)||Other Requirements*|
|Federal||BDC Capital Bridge Financing Program||Case-by-case||Convertible Note||n/a|
|Federal||BDC New Co-Lending Program for Small and Medium Enterprises||$6,250,000||Loan||Small/ Medium|
|Federal||Boosted Support from Farm Credit Canada||$500,000||Line of Credit||n/a||Part of agri-business industry|
|Federal||Canada Emergency Business Account||$40,000||Loan||Small|
|Federal||COVID-19 Development Stimulus Fund||$25,000||Grant||n/a||51% Indigenous ownership and part of tourism industry|
|Federal||Digital Technology Supercluster COVID-19 Program||$5,000,000||Grant||n/a||Member of Supercluster|
|Federal||Export Development Canada New Loan Guarantee for Small and Medium Enterprises||$6,250,000||Loan/loan guarantee||Small/Medium||Part of exports industry|
|Federal||National Research Council of Canada's Industrial Research Assistance Program||Case-by-case||Grant||Small/Medium|
|Federal||Next Generation Manufacturing Canada Supercluster||$5,000,000||Grant||n/a||Member of Supercluster|
|Federal||Regional Development Agencies Funding||Case-by-case||Loan||Small/Medium||Part of tourism industry|
|British Columbia||Emergency Relief Funds Program||$5,000||Grant||n/a||51% Indigenous ownership and part of tourism industry|
|British Columbia||Small Business Working Capital Loans||$25,000||Loan||Small||Based in Columbia Basin Trust region|
|Saskatchewan||Small Business Emergency Payment Program||$5,000||Grant||Small/ Medium|
|Ontario||Ontario Together Fund||Case-by-case||Grant||n/a|
|Québec||Exceptional Support Measures for Small Businesses||$300,000||Loan||Small/Medium||Based in the Papineau-Collines region|
|Québec||Concerted Temporary Action Program for Businesses||$50,000||Loan/loan guarantee||n/a|
|Québec||Emergency Aid for Small- and Medium-Sized Business||$50,000||Loan||Small/Medium|
|New Brunswick||COVID-19 Working Capital Loans||$1,000,000||Loan||n/a|
|New Brunswick||Small Business Emergency Working Capital Program||$100,000||Loan||Small/Medium|
|Prince Edward Island||Emergency Working Capital Financing||$100,000||Loan||Small|
|Nova Scotia||Small Business Impact Grant||$5,000||Grant||Small|
|Yukon||Business Relief Program||$60,000||Grant||n/a|
|Northwest Territories||Business Development and Investment Corporation - Working Capital Loans||$25,000||Loan||Small/Medium|
|Nunavut||Small Business Support Program||$5,000||Grant||Small|
*Unless otherwise indicated, provincial and territorial programs are only available to businesses located in and operating in the applicable province or territory.