CADA worked hard over the weekend with Prime Minister’s Office, the Minister of Finance’s office, and the Minister of Small Business’s office to ensure that dealers are covered by the 75% wage subsidy announced on last Friday – and we are proud to report that our efforts over the weekend have been successful. We would like to thank all dealers who sent letters to their respective MPs through our letter-writing tool over the weekend. Our collective efforts have resulted in 1,000+ letters sent over the weekend to MPs across the country.

Today, the Prime Minister announced details regarding what businesses will qualify for the Canada Emergency Wage Subsidy (CEWS).

To qualify, businesses will have to show a decline of 30% in revenue due to COVID-19. The number of employees does not matter, meaning dealers with several locations will qualify for the subsidy. CADA spoke directly with the Minister of Finance senior staff this morning and confirmed that this is a direct response to our request to cover businesses of all sizes such as dealers.

The CEWS will cover 75% on the first $58,700 of salaries, which is up to $847/week. This subsidy will be backdated to March 15, so dealers who have seen revenue falls of 30% or more by this date will be able to claim this subsidy right away.

The Prime Minister warned there will be serious consequences for businesses who attempt to cheat or abuse the system. All businesses that can should (if possible), top up the remaining 25%. The Prime Minister also emphasized the good faith nature of this fast-moving approach.

CADA will have further details to share tomorrow, after the Minister of Finance and Minister of Small Business provide us with additional details.

These details come after CADA’s key recommendations of deferred GST/HST, increased liquidity access for small businesses, and the workshare program were announced on Friday as part a package of business supports tools by the Prime Minister.

We will continue to fight on behalf of dealers, to ensure that they are able to stay open for business, employee hard working Canadians, and continue to serve customers long after the health pandemic is over.

More details on announced items key to dealers:

Deferred GST & HST payments, duties and taxes on imports until June 2020

  • This is equivalent of providing up to $30 billion in interest-free loans to all Canadian businesses.
  • Deferred payments to allow businesses to have more liquidity on hand to survive the financial impact of COVID-19.

Canada Emergency Wage Subsidy - up 75% of wages covered for qualifying dealers

  • The government’s previously announced wage subsidy of 10% has been increased to 75%. CADA worked hard to ensure that the definitions of qualifying businesses will include all dealers, so they can take advantage of this important tool and keep their employees on payroll.
  • CEWS will cover 75% of first $58,700 of workers’ salaries, or up to $847/week.
  • This subsidy will be available for up to three months and retroactive until March 15, 2020, allowing dealers to keep or potentially re-hire laid off staff.

New Access to Credit through Small and Medium-sized Enterprise Loan and Guarantee program

  • The government announced $12.5 billion of additional support and access to credit through EDC and BDC to help small and medium-sized enterprises with cashflow requirements through the new Small and Medium-sized Enterprise Loan and Guarantee program.
  • Businesses can apply for a guaranteed loan through their banking institution to access this additional financial support.
  • Loans of up to $6.25 million will be made available to small and medium-sized businesses in Canada directly through their financial institutions.

Canada Emergency Business Account

  • Banks will offer $40,000 loans, guaranteed by the government to qualifying small businesses and loans will be interest-free for the first year. Qualifying businesses must have payrolls of less than $1 million.
  • If certain conditions are met, a 25% loan forgiveness will be available up to $10,000.
  • Loans will be available through eligible financial institutions and will be fully guaranteed and funded by the Government of Canada.