Every Friday, we publish a weekly update on COVID-19 and its effect on business. View our complete library of COVID-19 resources and daily webinars here.
New Wage Subsidy Qualifications
The Canadian government has adjusted the qualifications for companies to qualify for the wage subsidy program. Previously, companies impacted by the coronavirus said the rules were too restrictive. Per Bloomberg:
- To qualify, companies need to show a 15% reduction in gross revenues for March. Previously, the threshold had been set at 30%. The threshold will be 30% in April and May;
- A firm can now use revenue from January and February as a base of comparison if it chooses. Previously, only year-over-year comparisons were allowed. This will help new firms;
- The government will allow the option to use cash accounting, instead of accrual accounting.
The Canada Summer Jobs Program
The Canada Summer Jobs Program provides opportunities for youth to develop and improve their skills within the not-for-profit, small business, and public sectors, and supports the delivery of key community services.
The Canadian government has made temporary changes to the Canada Summer Jobs Program which allows employers to:
- Receive an increased wage subsidy, so that private and public sector employers can also receive up to 100% of the provincial or territorial minimum hourly wage for each employee;
- Extend the end date for employment to February 28, 2021;
- Adapt their projects and job activities;
- Hire staff on a part-time basis.
Read more about Canada’s COVID-19 Economic Response Plan here.
BDC Launches Matching Investment Program for Canadian VC-Backed Companies Affected by COVID-19
In its recent letter, the CVCA noted that BDC Capital has launched the matching investment program, detailing that it is “ideal for high potential companies who have investor syndicates that are willing to support them.”
Per the BDC website:
“BDC Capital, BDC’s investment arm, has launched the BDC Capital Bridge Financing Program where we may match, with a convertible note, a current financing round being raised through qualified existing and/or new investors made into eligible Canadian start-ups. To be eligible, companies must be Canadian, backed by a qualified venture capital firm, have raised at least $500,000 in external capital before applying for the program, and be specifically impacted by COVID-19. Any matching investment by BDC Capital will be further subject, notably, to satisfactory due diligence review by BDC, agreement on terms of the investment and approval by a BDC investment committee.”
For more information about the BDC Capital Bridge Financing Program and what BDC is doing to support start-ups impacted by COVID-19, visit their website here.
While the coronavirus continues to spread quickly, it is important to remember that only a small percentage of patients need special treatment to recover. Trusted health experts continue to emphasize that the general population shouldn’t panic and should instead focus on practicing proper hygiene, such as hand-washing and refraining from touching the facial area.
Stay up to date on the coronavirus disease (COVID-19) by visiting the World Health Organization and the Government of Canada website.
- World Health Organization: Q&A on coronavirus (article)
- World Health Organization: How to protect yourself against COVID-19 (video)
- World Health Organization: Getting your workplace ready for COVID-19 (pdf document)
- McKinsey & Company: COVID-19: Implications for Business (article)
- Government of Canada: Coronavirus disease (COVID-19) (updates, resources on travel, updates, Canada’s response, etc.)
- World Health Organization: Coronavirus disease (COVID-19) advice for the public (in-depth resources)
- Government of Canada Economic Response Plan
- BDC’s Relief for Canadian Business Owners
- Coronavirus: Leading Through the Crisis
- Government of Canada Announces new Domestic Transportation Measures
- BDC Capital Bridge Financing Program