CANADA’S COVID-19 ECONOMIC RESPONSE
PLAN
Here are key aspects of the Government of Canada’s COVID-19
Economic Response Plan for MI retailers and their employees
For Employers:
The Federal Government has introduced various employer supports
in response to the virus. They include the following:
1. COVID-19 Wage Subsidy
Businesses experiencing a reduction of revenue of at least 15 per
cent in March, and 30 per cent in April and May, are eligible for a
temporary wage subsidy of 75 per cent of employee wages (up to
$58,000 per employee). The subsidy is intended as an incentive to
keep employees working; however, to qualify the employer must be
a Canadian controlled private corporation (CCPC) eligible for the
small business deduction under the Income Tax Act.
2. Canada Emergency Business Account
This will only apply if your payroll is under $1 million. In that
case, you may be eligible for an interest-free loan (line of credit) up
to $40,000 (with up to $10,000 eligible for complete forgiveness).
3. Small & Medium Sized Enterprises Loan &
Guarantee Program
Loans through financial institutions sought in response to virus-
related business impacts will be guaranteed by the Business Develop-
ment Bank of Canada (BDC) (up to $40 billion in lending).
4. Tax Payment Deferral
All businesses will be permitted to defer the payment of any
income tax amounts that become owing between March 18 th and
September 1 st , 2020 until August 31, 2020. That applies to tax
balances due as well as tax installments. No interest will accumulate
on those amounts during the deferral period.
For more information on the Government of Canada’s
COVID-19 Economic Response Plan, visit:
www.canada.ca.
For Employees:
CANADA EMERGENCY RESPONSE BENEFIT
(CERB)
What Is the Canada Emergency Response Benefit?
If you have stopped working because of COVID-19, the Canada
Emergency Response Benefit (CERB) may provide you with tempo-
rary income support. The CERB provides $500 a week for up to 16
weeks.
Who Is Eligible?
The benefit will be available to workers:
• Residing in Canada, who are at least 15 years old;
• Who have stopped working because of COVID-19 and have not
voluntarily quit their job or are eligible for EI regular or sickness
benefits;
• Who had income of at least $5,000 in 2019 or in the 12 months
prior to the date of their application; and
• Who are or expect to be without employment or self-
employment income of more than $1,000 for at least 14 consec-
utive days in the initial four-week period. For subsequent benefit
periods, they expect to have no employment or self-employment
income.
How to Apply
To deliver payments to Canadians quickly and efficiently, the CERB
is being jointly delivered by Service Canada and the Canada Revenue
Agency.
For more details on the Government of Canada’s
COVID-19 Economic Response Plan or to begin the
CERB application process, go to: www.canada.ca.
SUPPORT FOR MUSICIANS & CREATORS
Various levels of government, associations, and private businesses are offering
support to Canada’s cultural industries amidst these hardships, including the
music community, which will ultimately benefit the musical products industry.
• SOCANhas launched a$2 Million Enhanced Emergency Programfor its
members, offering interest-free advances on royalties.
• TheUnison Benevolent Fundhas initiated a$500,000 Relief Fundfor the
Canadian music industry.
• TheNational Arts Centrehas teamed up withFacebook Canadato of-
fer$100,000 to artists for their online performances.
• FACTORhas pledged todeliver previously-approved grantsto artists
for events cancelled due to COVID-19 and has increased the minimum
percentage of its funding contributions to 75% of the total eligible budget
across all programs.
• TheGovernment of Ontarioand a group of stakeholders have introduced
MusicTogether, a $300,000 initiative to directly support the province’s
musicians.
• Spotifywill donate up to$10 million to support musicians, working in
tandem with theUnison Benevolent Fundfor dissemination in Canada.
Amazon Music has also donated an unspecified amount to Unison.
CHECKING-IN ACROSS THE COUNTRY
CMT: Realistically, what measures would you like to see from
the federal government and/or your provincial government to
address the hardships facing MI retailers?
“Credit protection from suppliers.”
“Operating capital grants.”
“I would like to them to reduce the amount of tax remittance – instant boost to
our financial well-being, no red tape, and relieve the burden of profitable busi-
nesses to pay these large quarterly payments. We collect faithfully for them daily.”
“Refunds for GST/HST/RST collected and remitted in Q1. At least that
would be proportional to each company’s sales.”
“Force financial institutions to postpone/defer loan and mortgage payments.
Cover landlords with interest lost on postponed/deferred rent payments. Cover
suppliers with interest lost on delayed A/P.”
CMT: What are the most significant challenges facing your busi-
ness (and other MI retailers) pertaining to this COVID-19 crisis?
“Closing permanently.”
“The complete unknown and uncertainty of everything and how that affects
everything from purchasing to staff.”
“Brick-and-mortar retailers have had a hard enough time as the industry moves
more toward online sales and ordering. More than ever, the students have
become the backbone of their business. I have been developing my own online
presence in preparation.”
“Revenue reduction, and finding a way of keeping creditors working with us
without it causing crippling debt.
“The biggest challenge for me is that I do not see the end game. How long
can I stay closed and survive? And when we open, what if another wave of the
pandemic happens? A lot of unknowns right now.”
CANADIAN MUSIC TRADE
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