It is March 28, 2020 today. At the end of this week, BC government and Ottawa came up with some huge assistance for small businesses which I will cover here. I expect their response to only grow as time goes on and I will keep you abreast on new matters.
First, Ottawa response and the official link is below.
Parts of the Federal Response that impact small businesses like us:
- 75% wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15. Now we can find a way to keep our valuable employees.
- $40,000 interest free loan to small businesses. The business first must demonstrate they paid between $ 50K to $ 1Mil in total payroll in 2019. If the balance of the loan is repaid before Dec 31,2022, 25% of the loan or $ 10K will be forgiven.
- Deferral of income tax payments owing or after March 18, 2020. The deferral is interest free as well to Sep 1, 2020. Please note that most of your 2019 installments were owing prior to March 18 so interest will accrue on that.
- All businesses including the self employed to defer GST payments until June 30, 2020. So annual filers do not need to pay until June 30. Quarterly filer need not pay for 2020 Q1 until June 30. Monthly filers need not pay Feb, March and April 2020 until June 30.
- CRA has also freeze collection actions, new audits, and audits in progress.
BC response and the official link is below.
- PST filing and payment deferred until Sep 30, 2020.
My suggestion at this moment is to familiarize yourself with the assistance you qualify for. Assemble all the necessary information now so that when the government program portal is available, you are able to apply immediately. Details are few at this time. My guess is those with My Account set up already and filings up to date will move faster.
Call your bank manager to discuss applying for the loan as soon as available.
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Update: April 3, 2020 Taxes & Bubbly Video