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.

Federal Funding

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.

British Columbia

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.

Saskatchewan

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

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.   

Summary Table

Jurisdiction Program  Funding Maximum  Funding Type  Size of Business (if applicable)  Other Requirements* 
Federal Programs
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
Provincial Programs
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
Territorial Programs
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.

Originally Published 16 April, 2020

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.