CADA continues to advocate for expanded measures to assist our dealers with liquidity and business supports. Today the Prime Minister announced changes to the Canada Emergency Business Account (CEBA) that CADA and the Chamber of Commerce have been pushing for: the qualifying criteria for CEBA has been expanded to include dealers who had a total payroll of $20,000 - $1.5 million in 2019.
CEBA is a critical support measure that provides interest-free loans of $40,000 to qualifying small and medium sized businesses. If dealers repay the balance by December 31, 2022, up to 25 percent of the loan (up to $10,000) will be forgiven. While this does not help every dealer, it responds to the need of numerous dealers who missed the previous cut off level of 2019 payrolls between $50,000 and $1 million. Dealers should apply through their financial institution.
CADA has also been pushing for rapid payment to dealers that are owed HST/GST refunds for the first three months of the year. Dealers have reported concerns that HST/GST refunds would be delayed, based on large inventory purchases in January and February in anticipation of spring sales that have not materialized.
CADA has met with the leadership of the Canada Revenue Agency (CRA) to press for speedy payment. CRA confirmed that the HST/GST Directorate has been declared essential and have ramped up processing to meet the needs of the small and medium sized business sector including retail automotive.
CADA will continue to monitor and update dealers on the liquidity, employee assistance and recovery measures we are lobbying for.