During this challenging and uncertain time, the team at AIAC continues to be your voice in Ottawa.
If you know of a company looking for more information about how we are working to support industry, please encourage them to contact Lynne Adamson, Director, Operations and Member Services.
We’re here to help.
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.
The program is in place for a 12-week period (March 15 to June 6, 2020).
Employers who suffer a drop in gross revenues of at least 15% in March and 30% in April and/or May, when compared to the same month in 2019.
Alternatively, they would qualify if they can demonstrate a drop in gross revenues of 30%+ in these months against January and February of this year.
Employers of all sizes and across all sectors of the economy, with the exception of public sector entities, are eligible.
An employer’s eligibility is based entirely on the salary or wages actually paid to employees. All employers are expected (or at least make best efforts) to top up salaries to 100% of the maximum wages covered.
Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
Businesses qualifying for the Emergency Wage Subsidy can use it in combination with the Temporary Wage Subsidy.
No, you just need to hire your employees back to claim the subsidy.
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.
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.