Financial Support for Aerospace

This compilation of support measures for business focusses on:

  1. Measures to avoid or minimize the impact from layoffs
  2. Access to capital and other liquidity support measures
  3. Additional support measures (summer jobs, student work force placements, etc.)

To access a government website that helps you find the appropriate financial supports for your needs, please click here.

*The programs and services described in this document may change at any time and without notice. For the most up to date information on these support measures, please regularly consult the referenced links on this page.

Avoiding or Minimizing the Impact from Layoffs

Program Description

Canada Emergency Wage Subsidy

 Do you need to modify a CEWS claim you’ve already made? CRA has added a new tool for employers to manage their CEWS claims after applying. Learn More

Resources at a glance: 

Apply Here

Work Sharing Program

The program provides Employment Insurance (EI) benefits to top off the wages (based on an EI formula) to eligible employees who agree to reduce their normal working hours and share the available work while their employer recovers. As part of the Government of Canada’s COVID-19 response, the maximum length of a work-sharking agreement has been doubled from 38 to 76 weeks and processing time has been reduced from 30 days to 10 days.

Target companies: Businesses that have reduced operations but not closed entirely.

Learn More

Canada Emergency Response Benefit

Provides $2,000 a month for up to four months for individuals who have lost all of their income as the result of COVID-19. Employees who are furloughed can also receive the Benefit.

Target Companies: Individuals who have lost employment income as the result of COVID-19.

Learn More

NRC IRAP Innovation Assistance Program (IAP)

IRAP IAP provides a wage subsidy to eligible employers for up to 12 weeks.

SMEs pursuing technology-driven innovation who have been unable to secure funding under the Canada Emergency Wage Subsidy (CEWS) are eligible and can apply for financial assistance under IRAP IAP.

The call for applications closed on April 29. Applicants are encouraged to consult the IAP Frequently Asked Questions for the latest program updates.

Learn More

Access to Capital and Other Liquidity Supports

Program Description

Large Employer Emergency Financing Facility (LEEFF)

The Large Employer Emergency Financing Facility (LEEFF) provides bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going. The objective of this support is to help protect Canadian jobs, help Canadian businesses weather the current economic downturn, and avoid bankruptcies of otherwise viable firms where possible.

This support will not be used to resolve insolvencies or restructure firms, nor will it provide financing to companies that otherwise have the capacity to manage through the crisis. The additional liquidity provided through LEEFF will allow Canada’s largest businesses and their suppliers to remain active during this difficult time, and position them for a rapid economic recovery.

Learn More

Canada Emergency Business Account (CEBA)

The federal government announced an expansion to the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses. The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll. Read more here.

Provides up to $25B to eligible financial institutions so they can provide interest-free loans to small businesses of up to $40,000. These loans—guaranteed and funded by the Government of Canada—will ensure that small businesses have access to the capital they need to cover their operating costs, at a 0% interest rate. If the loan is completely paid off by Dec. 31, 2022, a quarter of the loan will be forgiven.

Apply Here

Business Credit Availability Program

The Business Credit Availability Program was expanded to mid-sized companies with larger financing needs. Support will include loans of up to $60 million per company, and guarantees of up to $80 million.  Export Development Canada (EDC) & the Business Development Bank of Canada (BDC) will work with private sector lenders to support access to capital for Canadian businesses in all sectors and regions.

Learn More

BDC Co-Lending Program

BDC partners with financial institutions to co-lend term loans to businesses for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts up to $6.25M, 80% of which would be provided by BDC, with the remaining 20% by the financial institution.

Target Companies: All legal small and medium-sized enterprises

Apply Here

EDC Guarantee Program

EDC guarantees a new one-year term loan or operating line of credit for 80% of its value, up to $6.25M, allowing businesses to deal with payroll and operating cost issues and enabling their financial institution to take on less risk. Available for all Canadian companies, including non-exporting businesses that sell domestically.

Target Companies: All legal small and medium-sized enterprises

Apply Here

BDC Working Capital Loan

Working capital loans of up to $2M with flexible repayment terms such as principal postponements for qualifying businesses and reduced rates on new eligible loans.

Target Companies: Varying sizes

Apply Here

Canada Emergency Commercial Rent Assistance (CECRA)

Canada Emergency Commercial Rent Assistance (CECRA) for small businesses provides relief for small businesses experiencing financial hardship due to COVID-19. It offers unsecured, forgivable loans to eligible commercial property owners to:

  • reduce the rent owed by their impacted small business tenants
  •  meet operating expenses on commercial properties
Learn More

Income Tax Deferrals

The Canada Revenue Agency deferred all payment of any income tax amounts owing on or after Mar. 18 and before Sept. 2020 until after Aug. 31, 2020. No interest or penalties will accumulate on these amounts during this period. The filing date for the 2019 tax year was also  extended until June 1, 2020

Target Companies: All businesses

Apply Here

HST/GST Remittances and Customs Duty Deferrals

The Canada Revenue Agency and Canada Border Services Agency permitted businesses to defer all HST/GST remittances as well as customs duty owing on their imports until June 30, 2020.

Target Companies: All businesses

Apply Here

Additional Support Measures

Program Description

Regional Relief and Recovery Fund

Businesses across Canada unable to access existing relief measures can now apply for funding under the Regional Relief & Recovery Fund.  Officially launched May 13, the fund is being delivered by regional development agencies across the country to support businesses and organizations that are key to the regions and local economies.

A total of nearly $1 billion will be available through Canada’s six regional development agencies.

Learn More & Apply

Canada Summer Jobs

The government announced temporary changes to the Canada Summer Jobs program to help employers hire summer staff and provide young Canadians access to jobs during this unprecedented time.

This program is intended to help create up to 70,000 jobs for youth between 15 and 30 years of age.

The temporary changes to the program for this year include:

  • an increase to the wage subsidy, so that private and public sector employers can also receive up to 100 per cent of the provincial or territorial minimum hourly wage for each employee;
  • an extension to the end date for employment to February 28, 2021;
  • allowing employers to adapt their projects and job activities to support essential services;
  • allowing employers to hire staff on a part-time basis.
Learn More

Changes to the Student Work Placement Program

The Student Work Placement Program (SWPP) gives post-secondary students across Canada paid work experience related to their field of study.

In response to COVID-19, the Federal Government has introduced changes to the SWPP, and aerospace and aviation businesses can be pre-approved if desired, even before selection of one or more students.

Learn More

Business Resilience Service Hotline

The federal Government launched a Business Resilience Service Hotline to help entrepreneurs & small business owners in need of financial planning advice, particularly those who may not have access to an accountant.

The hotline is a national, bilingual service operated by the Canadian Chamber of Commerce. As of today, small business owners with pressing financial needs can call 1-866-989-1080 (toll-free) seven days a week, from 8 a.m. to 8 p.m. (ET).

Learn More

Small Business Grants Program Offered by Facebook

Facebook for Business offered $100 million in cash grants and ad credits to help small businesses experiencing disruptions resulting from COVID-19.

Up to 30,000 eligible small businesses in more than 30 countries will be able to receive a grant from Facebook. To be eligible to apply, your business must:

  • Have between 2 and 50 employees
  • Have been in business for over a year
  • Have experienced challenges from COVID-19
  • Be in or near a location where Facebook operates

Businesses in all eligible cities can submit their applications between May 26th and June 2nd.

Learn More