Government Rolls Out COVID-19
Support Programs for Businesses
& Individuals
The Government of Canada has introduced programs and ini-
tiatives to help Canadian businesses make it through the forced
closures and loss of business caused by the COVID-19 pandemic.
Many will offer significant benefits to the professional audio indus-
try, as well as customers and end-users in the music and cultural
sector.
The Federal Government has introduced various employer
supports in response to the virus. They include:
1. COVID-19 Wage Subsidy - Businesses experiencing a
reduction of revenue of at least 30 per cent 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, and details are pending; however,
to qualify, the employer must be a “Canadian controlled private
corporation” eligible for the small business deduction under the
Income Tax Act.
2. Canada Emergency Business Account - This will apply to
companies with a payroll under $1 million. In that case, they 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- and Medium-Sized Enterprises Loan and Guar-
antee Program - Loans through financial institutions sought in
response to virus-related business impacts will be guaranteed by
the Business Development Bank of Canada (up to $40 billion in
lending).
4. Tax Payment Deferral - All businesses will be permitted to
defer, until Aug. 31, 2020, the payment of any income tax amounts
that become owing between March 18 and Sept. 1, 2020. That
applies to tax balances due as well as tax installment. No interest
will accumulate on those amounts during the deferral period.
As well, the application portal is now open for the federal gov-
ernment’s Canada Emergency Relief Benefit (CERB). It provides
$500 a week for up to 16 weeks to Canadians who have lost their
jobs or source of income because of COVID-19. To be eligible,
applicants must: reside in Canada and be at least 15 years old; have
stopped working because of COVID-19 and have not voluntarily
quit their job or are eligible for regular EI or sickness benefits; had
income of at least $5,000 in 2019 or in the 12 months prior to the
date of their application; and are or expect to be without employ-
ment or self-employment income.
The last CERB eligibility criteria mentioned above created a
lot of concern among freelancers, musicians, and others in the
“gig economy.” For example, musicians and producers were left
unsure if they qualify for CERB if any song royalties continue to
come in, even if that income is not enough to live on. On April 6 th ,
Prime Minister Justin Trudeau acknowledged these concerns and
promised changes would be announced to fill holes in the CERB
eligibility, including for those who have lost some, but not all,
income because of COVID-19.
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.
For more information on these and other programs and ini-
tiatives launched for those in the music and creative sector, go to
www.professional-sound.com/coronavirus.
PROFESSIONAL SOUND 17