The government has introduced the Canadian Emergency Wage Subsidy (CEWS) which applies at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week.

For the purposes of the wage subsidy, an eligible employer means:

• a corporation or a trust, other than a corporation or a trust that is exempt from tax under Part I of the Income Tax Act (the Act) or is a public institution;
• an individual other than a trust;
• a registered charity (other than a public institution);
• a person that is exempt from tax under Part I of the Act (other than a public institution), that is:
  • an agricultural organization;
  • a board of trade or a chamber of commerce;
  • a non-profit corporation for scientific research and experimental development;
  • a labour organization or society;
  • a benevolent or fraternal benefit society or order; and
  • a non-profit organization;
• a partnership, each member of which is a person or partnership described in this list;
• a prescribed organization, including certain Indigenous businesses.

A public institution is a school, school board, hospital, health authority, public university or college (see Q3-7). It also includes an organization described in any of paragraphs 149(1)(a) to (d.6) of the Act, for example, municipalities and local governments and tax-exempt Crown corporations.

No, you just need to hire your employees back to claim the subsidy.

Click here for more information.

Eligible employers can apply through the Canada Revenue Agency’s My Business Account portal as well as a web-based application. Employers have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees.

Yes. AIAC has compiled this information for you on our ‘Financial Supports’ resource page found here.

You can also visit the federal government’s website by clicking here: COVID-19 Economic Response Plan.

Companies may use the 10% wage subsidy and the work-share program at the same time, for the same group of employees. For employers that are eligible for both the CEWS and the 10 per cent wage subsidy for a period, any benefit from the 10 per cent wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the CEWS in that same period.

Employers may use the CEWS and wage subsidy at the same time. For employers and employees that are participating in a Work-Sharing program, EI benefits received by employees through the Work-Sharing program will reduce the benefit that their employer is entitled to receive under the CEWS.

If conditions of employment have been substantially altered as a result of COVID-19, this could be interpreted as termination, in which case a former employee would be eligible for Canadian Emergency Response Benefit.

EI Work Share is another option: employers can reduce hours while employees receive EI benefits. This requires an agreement between the employer, a group of at least 2 employees and Service Canada.  More information can be found on the Service Canada Website.

Issues surrounding essential services designations have been at the top of AIAC’s priority list during this challenging time.

In recognition of the fact AIAC members operate in all regions of the country, offering products and services across Canada and indeed the entire world, we have been aggressively lobbying provincial, federal, and international governments for harmonization of essential services designations.

On March 23 and March 27, we wrote to the federal government urging them to address the lack of clarity and consistency so that the industry could maintain its operations to support the safe transport and critical infrastructure both at home and around the world.

To that end, on March 30, following our concerted efforts for the inclusion of Canada’s aerospace maintenance, repair and overhaul workers in the essential aviation workers designation, Transport Canada issued the directive.  Originally, the essential aviation list only included parts distributors and suppliers, the list now includes: Parts manufacturers, distributors, suppliers, and repair and overhaul organisations

Further, on April 2, the Federal Government also issued a directive deeming aerospace essential.

Yes.  The Government of Canada has announced nearly $1 billion in support to businesses and communities through Canada’s Regional Development Agencies (RDAs).

There are six RDAs across the country (the Canadian Northern Economic Development Agency, Western Economic Diversification Canada, FedNor, FedDev Ontario, Canada Economic Development for Quebec Regions and the Atlantic Canada Opportunities Agency).

Click here for more details.

Defence SMEs are now eligible for all programs offered under Business Credit Availability Program. 

On the government procurement side, there are several streams open for all businesses who can help the government respond to domestic needs for COVID-19.  Click here for more information.

Since the start of the COVID-19 crisis, AIAC has been aggressively lobbying both the political, and public service side, of the federal government to defer repayment obligations for the Strategic Aerospace and Defence Initiative (SADI).

On March 31, we were pleased to inform members that Minister Navdeep Bains approved a 9-month deferral for:

• Strategic Aerospace and Defence Initiative (SADI),
• Technology Partnerships Canada (TPC),
• Automotive Innovation Fund (AIF),

This decision rightly recognizes the need to relieve some of the financial pressure our member companies are facing during these uncertain times.

The deferral will cover repayments due to the Government between April 1 and December 31, 2020. Click here to read the letter.

The Government of Canada established a Business Credit Availability Program (BCAP) to provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).

BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism.

This program includes:

• Loan Guarantee for Small and Medium-Sized Enterprises
  EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs.

• Co-Lending Program for Small and Medium-Sized Enterprises
  BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.

These programs are now available at various financial institutions and credit unions.

Additionally, The Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.

To qualify, these organizations will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019.

Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.