Loan Programs
The Canada Emergency Business Account (CEBA) is a $55 billion program that provides interest-free loans of up to $40,000 to small businesses and not for profits. The borrowed funds are to help cover operating costs during a period where revenues have been temporarily reduced. The loan will better position entities to quickly return to providing services and creating employment.
On May 19, 2020, the federal government announced an expansion to the eligibility criteria for the CEBA, making it available to more Canadian small businesses, including:
- Sole proprietors receiving income directly from their businesses;
- Businesses that rely on contractors; and
- Family-owned corporations that pays employees through dividends
All applicants now have until December 31, 2020 to apply for the CEBA
**COMING SOON** CEBA support is being expanded from $40,000 to $60,000. This expansion will be available to all eligible previous and new CEBA applicants.
Visit Crowe MacKay's CEBA FAQs for more information on the program.
Business Credit Availability Program (BCAP)
The Business Credit Availability Program (BCAP) will provide additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports, and tourism.
This program includes:
A New Loan Guarantee for Small and Medium Enterprises
Small and medium-sized enterprises (SMEs) may be particularly vulnerable to the impacts of COVID-19. To support their operations, Export Development Canada will guarantee new operating credit and cash flow term loans that financial institutions extend to SMEs, up to $6.25 million.
A New Co-Lending Program for Small and Medium Enterprises
The Co-Lending Program will bring the Business Development Bank of Canada (BDC), together with financial institutions, to co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts up to $6.25 million and the BDC’s portion of this program is up to $5 million maximum per loan. Eligible financial institutions will conduct the underwriting and manage the interface with their customers
Support for Mid-Sized Companies
In expanding the BCAP to include mid-sized companies, loans of up to $60 million per company will be granted, with guarantees of up to $80 million. Through the BCAP, EDC, and the BDC will work with private sector lenders to support access to capital for Canadian businesses in all sectors and regions.
Large Employer Emergency Financing Facility
The Large Employer Emergency Financing Facility (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 Innovation, Science, and Economic Development Canada.
The LEEFF is not to be used to resolve insolvencies or restructure firms, nor can it provide financing to businesses that otherwise have the capacity to manage through the crisis.
Guiding Principles of LEEFF
- Businesses seeking support must demonstrate how they intend to preserve employment and maintain investment activities.
- LEEFF 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 business’ eligibility, an assessment may be made of its employment, tax, and economic activity in Canada, as well as its international organizational structure and financing arrangements.
- The program will not be available to businesses that have been convicted of tax evasion.
Recipients 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, including how their future operations will support environmental sustainability and national climate goals.
Applications are now open for LEEFF. Apply here
Community Futures Network
Rural businesses and communities can access $287 million in additional funding through the Community Futures Network.
Learn more on the Community Futures Network
Industrial Research Assistance Program (IRAP)
Assistance for innovative, early-stage companies who are not eligible for other COVID-19 business supports can access the IRAP. The Federal Government is investing $250 million in this program.
IRAP provides advice, connections, and funding to help Canadian small and medium-sized businesses increase their innovation capacity and take ideas to market.
Futurpreneur Canada
The Federal Government is providing $20.1 million in support to Futurpreneur Canada to support young entrepreneurs across the country facing challenges due to COVID-19. The funding will allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.
Learn more about Futurpreneur Canada
Businesses in the Territories
Financial aid in the amount of $15 million will be available to businesses in the Territories. These funds will assist businesses with operating costs not already covered by other Government of Canada measures.
Canada’s Regional Development Agencies
The Federal Government is providing $675 million in financing support to small and medium-sized businesses that are unable to access other COVID-19 business supports through Canada's Regional Development Agencies.
Connect with your Regional Development Agency
Supporting Financial Market Liquidity
The Insured Mortgage Purchase Program will be launched allowing the government to purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation, providing long-term stable funding to banks and mortgage lenders, helping to facilitate continued lending to Canadian consumers and businesses, and adding liquidity to Canada’s mortgage market.
The Bank of Canada also announced measures to help the financial markets, such as adjusting its market liquidity operations, broadening eligible collateral for its repo facility and readiness to provide support to the Canada Mortgage Bond market.