(updated to include additional information on May 6. While I’ll make every endeavour to update this as information is released, the official government websites are included here and will have the most up to date information and links to applications, etc.)

As this uncertainty continues, people are unsure as to how long it will last, and what the repercussions will be to their own financial situation and their community. I’m trying my best to get people accurate information as soon as possible, and that’s what this update is all about.

The Canadian Federal Government have ironed out and approved at all levels the Economic Response Plan (or at least this first roll out) and have confirmed the following that may apply to you:

Already receiving these benefits?

[wp-svg-icons icon=”checkmark-circle” wrap=”i”] 1) GST Credit: for those already receiving the GST Credit, they received an automatic enhancement in April of approximately double their 2019-20 benefits – or approximately $400 for singles, and $600 for couples/families.

2) Canada Child Benefit (CCB): for those already receiving the CCB, they will receive an automatic enhancement of $300 per child automatically added to May’s payment.

** if you’re eligible but have not applied for either of those benefits, you can do so online. If you’re currently receiving either or both benefits, you don’t need to re-apply.

Unable to work?

3) EI Benefits: if you’re eligible for EI/EI sickness benefit and have been laid off or are off work due to sickness, you can apply for your regular EI benefit. (* note that a doctor’s note is not required to apply to EI sickness benefits at this time, and the 1-week waiting period is waived.)

[wp-svg-icons icon=”spam” wrap=”i”] 4) Canada Emergency Response Benefit: If you’re self-employed, this is the benefit for you. CERB is for

• anyone NOT eligible for EI, are unable to work, or are experiencing reduced income/hours due to a COVID-19 temporary closure of the business and are NOT receiving wage subsidy from their employer;
• are unable to work because they are sick with COVID-19, and are not receiving wage subsidy from their employer;
• are caring for someone who’s sick with COVID-19 and unable to work as a result;
• are unable to work because they need to take care of their children who require supervision;
• wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance;
• workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19;

Those eligible can apply and receive $2000 monthly (taxable) benefit for up to 4 months, would be paid every four weeks and be available from March 15, 2020 until October 3, 2020. To be eligible you must have earned $5000 or more in 2019, and not have earned more than $1000 in employment of self- employment income in the most recent 14 days before application prior to the first application, and not expect to earn more than $1000 during the eligibility period. For re-application, you must continue to be receiving less than $1000 in employment or self-employment income for the new eligibility period.

NEW: people who may have previously earned some income, but were not eligible for the CERB Benefit are now if that income earned is $1000 or less each benefit period (4 weeks starting March 15). This is retroactive, and the CERB Benefit is not reduced based on income earned during this period.

For more CERB FAQ’s, click here.

This benefit became available for application on April 6th through the CRA My Account portal(direct website now available), or by calling a toll free number (1-800-959-2019 or 1-800-959-2041). Successful applicants are expected to receive a benefit within 3 days of application.  Re-application is required monthly, the first week of the next benefit period on the day based on your month of birth, up to 4 benefit periods. Note that you CAN go on and off benefit if you should earn more than the $1000 in one 4-week period, and then earn less in the following period.

Note that they are requesting people apply on a day of the week coordinated with their month of birth as follows:

5) Canada Emergency Student Benefit:  For post-secondary students and recent graduates not eligible for the CERB, EI and are unable to work due to COVID-19, this proposed benefit of $1250 per month for eligible students would be available for the months of May to August 2020. The benefit for those with dependents or disabled is a proposed $2000 monthly. Find out the latest here.

Income Tax filing deadline delayed…

For those individual taxpayers, the filing deadline has been delayed until June 1, 2020, with any amounts owing not due until August 31, 2020. If you’re expecting or eligible for CCB or GSTC, it’s recommended that you file sooner than later so that your benefits are calculated and distributed appropriately.

Support for Small Business

Please note that if you are a self-employed solo-preneur or have contract workers, you should look to the benefits available for individual workers above. For qualifying  companies with employees, the government is offering the following support:

1. 75% wage subsidy: in order to keep employees on the payroll (and off of EI), the federal government is offering a 75% wage subsidy for up to 3 months retroactive to March 15. Businesses must qualify for this benefit subsidy. This is eligible for any size business with any number of employees, including not-for-profits and charities, who can show a reported revenue loss of 30% or more as a result of the COVID-19 measures. This subsidy is capped at $847 a week and is backdated to March 15, 2020.
2. Business Credit Availability Program (BCAP): for qualifying businesses in certain industry sectors, the federal government is working with the BDC and EDC to partner with financial institutions in the guaranteeing of business loans up to $40,000. Businesses should check out the information on the Canada Government’s website below and contact their financial institution if they are eligible.
   

   NEW: enhancements have been introduced which make more small businesses eligible for these programs.

3. Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA):  this program is to be administered by the CMHC based on a collaboration between the Canada and Ontario governments where funding in the form of forgivable loans will be provided for 50% of the monthly gross commercial rent for the months of April May, and June, paid directly to the commercial lender through CMHC, applicable to rents of $20,000 per month or less. These loans are only forgiven if the landlord agrees to reduce the tenants’ rent by 75%, with the expectation that the landlord would contribute the final 25% not otherwise covered by the government and tenant. This is a complex and imperfect program, and there is the expectation of some changes to come seeing as there are many landlords unwilling to participate, leaving the small business owner unable to pay the rent and facing possible eviction. For more details, refer to CMHC’s website here.

Keep up to date on all the latest Federal Economic Response info here.

The Ontario Provincial Government has released the following Economic Response Action Plan (current as at March 25 announcement):

1. Committing $3billion to the health care system;
2. Helping families pay for the extra costs associated with school and daycare closures during the COVID-19 outbreak by providing a one-time payment of $200 per child up to 12 years of age, and $250 for those with special needs, including children enrolled in private schools;
3. Proposing to double the Guaranteed Annual Income System (GAINS) payment for low-income seniors for six months;
4. Supporting more affordable electricity bills for eligible residential, farm and small business consumers, by providing approximately $5.6 billion for electricity cost relief programs in 2020-21, which is an increase of approximately $1.5 billion compared to the 2019 Budget plan. Further supporting more affordable electricity bills by setting electricity prices for residential, farm and small business time-of-use customers at the lowest rate, known as the off-peak price, 24 hours a day for 45 days to support ratepayers in their increased daytime electricity usage as they respond to the COVID-19 outbreak, addressing concerns about time-of-use metering;
5. Providing $9 million in direct support to families for their energy bills by expanding eligibility for the Low-income Energy Assistance Program (LEAP) (St. Catharines, and rest of Niagara) and ensuring that their electricity and natural gas services are not disconnected for nonpayment during the COVID-19 outbreak;
6. Expanding access to the emergency assistance program administered by Ontario Works to provide financial support to people facing economic hardship and help more people meet basic needs such as food and rent during this public health emergency;
7. Providing six months of Ontario Student Assistance Program (OSAP) loan and interest accrual relief for students, leaving more money in people’s pockets;
8. Helping to support regions lagging in employment growth with a proposed new Corporate Income Tax Credit, the Regional Opportunities Investment Tax Credit;

FOR BUSINESSES:

1. Cutting taxes by $355 million for about 57,000 employers through a proposed temporary increase to the Employer Health Tax (EHT) exemption;
2. Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA): referenced above

FOR NOT-FOR-PROFITS & CHARITIES:

1. Enhancing funding by $148 million for charitable and non-profit social services organizations such as food banks, homeless shelters, churches and emergency services to improve their ability to respond to COVID-19, by providing funding directly to Consolidated Municipal Service Managers and District Social Service Administration Boards who would allocate this funding based on local needs;

The Ontario Government has announced a phased re-opening of businesses beginning May 4th with landscape and garden centres, golf courses for preparations, etc.

They are still encouraging physical distancing, washing your hands, and for businesses to refrain from price-gouging, and have set up provisions for fines to be imposed on businesses in violation of this, as well as being open when they’ve been told to close.

*** Report an individual who is price gouging related to COVID-19 by filing a complaint at 1-800-889-9768 between 8:30 a.m. and 5:00 p.m., Monday to Friday, or by filing a report online.

For the latest updates on COVID-19 response at the Province of Ontario, please refer here.

Municipal Actions by City

St. Catharines: 

For more information, read the press release or visit their website.

Grimsby:

The Town of Grimsby has released the following economic relief measures:

• waive penalty and interest charges on current (2020) taxes that are past due from May 1 until June 30, 2020
•  waive penalty charges on past due water accounts from April 1 until June 30, 2020
•  waive interest charges on past due accounts receivable from April 1 until June 30, 2020
•  waive NSF charges on tax and water payments from April 1 until June 30, 2020
•  the Town will continue to process pre-authorized payments for taxes and water on their regular billing schedule.  Those that wish to be remove from pre-authorized payments should contact the Town.

Ratepayers that are able to continue to pay their property taxes and water bills are strongly encouraged to do so.  This assistance is intended for Grimsby residents who are not able to pay at this time, due to COVID-19 impacts. These rate supports will continue to be reviewed as timelines for COVID-19 become more clear.

To learn more, go to their website.

Welland:

The City of Welland has released the following economic relief measures that will be in effect from March 19 until May 31, 2020:
• Penalty and interest charges on pending and outstanding tax and water/wastewater billing
arrears
• Interest charges on outstanding account receivables
The Pre-authorized payment program (PAP) will continue for Tax and Water billings and NSF charges will
be waived. Participants who wish to withdraw from the program can do so without penalty.

For more information, see the press release, or check their website.

Non-Government Relief

Mortgage-holders….

You may have received a notification from your mortgage company about deferral of your mortgage. Note the following:

• it’s a deferral, not a waive of the payment: many banks are offering an interest-only payment, are spreading the payment out over the next months following the deferral, increasing your monthly payment, OR are tacking the payment on to the end of your mortgage and increasing the interest owing as a result. PLEASE talk to your bank to see what their relief package is specifically, and understand the financial consequences to you. If you don’t need to defer your mortgage because you have access to other financial resources, or are still working, refrain for a deferral.
• it’s not an “entitlement”: banks are offering this on a case-by-case basis, so you have to prove why YOU should be getting a deferral, and often times it’s only for a few months, then you have to reapply, or prove your eligibility on a monthly basis.

Additional loan relief is rolling out bank by bank on a case-by-case basis. As it stands, it’s unclear the eligibility criteria and many of the phone lines are overrun with inquiries.

If you’re a renter of personal or commercial space, I would recommend that you talk to your landlord to see what relief they can offer in these times. There is currently nothing from the government to help those commercial mortgage-holders, so it’s a case-by-case appeal to your individual landlord right now. Remember that your landlord may be experiencing some financial implications as well, and working together is the best solution, as opposed to participating in a rent strike.

Major Credit Cards providing relief…

Many banks have issued statements indicating that IF the minimum payment is not able to be made because of financial hardship during these times, this will not affect your credit score, nor will any use of the card be terminated. This will be owing still, and no payment is waived nor interest rate decreased, however they are being lenient on missed payments. Contact your credit card company for specific details, as this seems to be the trend but may vary between companies.

Be kind to others…

If you’re in a good financial position or are still working, congratulations! I’m here to support you in anything that you might need, but know that you’re better off than many. If you’re eligible for a benefit but feel that your situation doesn’t require it, please save yourself the time and trouble and don’t apply. The funds and programs are available for those who need it, so let’s leave it there for them. Some benefits will be dispensed without you having to do anything if you’re already receiving (GSTC & CCB).

Practice patience… while you’re having to sit on hold for hours with your bank or CRA, and perhaps are getting frustrated with the level of service remember the following:

• they may be working from home in a less than ideal situation/limited access to information and regular systems;
• they’re overrun with calls and inquiries right now, probably from some very stressed individuals; and,
• they too may be experiencing stress and anxiety about the situation in their own lives and are doing their best to help others right now.