Emergency aid could help contractors
April 13, 2020
As self-employed entrepreneurs providing essential services, home builders and renovators have a chance to benefit directly through federal assistance meant to soften the economic blow of the COVID-19 crisis.
On April 11, Prime Minister Trudeau laid out the $73 billion Canada Emergency Wage Subsidy (CEWS). It is designed to help companies avoid laying off employees during the pandemic.
The CEWS offers a 75 per cent wage subsidy over the next three months to businesses that have lost 30 per cent of their revenue due to the crisis. Companies will need to reapply for the program each month.
Many contracting companies would qualify. Most residential construction sites have been shut down in Quebec and Ontario, and the number of home renovations has declined across the country.
Other aid comes through the Business Development Bank of Canada (BDC) and is devoted exclusively to entrepreneurs.
BDC financing options include loans of up to $100,000 to businesses that have existed for one to two years. Applicants can fill out an application online: Click HERE.
Another loan program will apparently be offered by BDC to serve entrepreneurs who require more than $100,000, but complete details have yet to released. Current BDC relief measures for qualified businesses include: working capital loans of up to $2 million with flexible repayment options; postponement of payments for up to six months, free of charge, for existing BDC clients with total BDC loan commitments of $1 million or less; and, reduced rates on new eligible loans.