New Financial Supports Available; limited applicability to crop sector
Apart from the support previously announced related to Farm Credit Canada and the Advanced Payment Program changes, further programs have been announced that farmers, in some circumstances, may be eligible.
Canada Emergency Business Account
The new Canada Emergency Business Account will provide interest-free loans of up to $40, 000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. Up to $10,000 of that amount will be eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.
To qualify organizations will need to demonstrate that they paid between $50, 000 to $1 million in total payroll in 2019. Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.
Canada Emergency Wage Subsidy
Must prove losses of 30% from the months of March, April, May 2019 to the same months in 2020. This is obviously not all that useful unless you did experience significant losses which I think might be hard for farmers to demonstrate with grain sales happening in those months?
Temporary Wage Subsidy for Employers program
If a farmer doesn’t qualify for that (at the 30% loss) they may want to look at this program. An employer can reduce the amount of payroll deductions required to be remitted to CRA. This subsidy is equal to 10% of the renumeration paid from March to June 2020 up to $1375 for each eligible employee and to a maximum of $25, 000 total per employer.
Business Link – Alberta Government
Small businesses can seek free advice, coaching and information on COVID-19 resources and supports. Business Link will serve as a one-stop shop to help small businesses learn about and connect to available COVID-19 supports based on their unique business needs.