Canada – The government of Canada has a web page with links for all the federal benefits available affecting businesses.
Ontario – Small business supports grants: https://www.ontario.ca/page/businesses-get-help-covid-19-costs Submit applications as soon as possible.
Program details here: https://covid-19.ontario.ca/covid-19-help-businesses-ontario#financial-relief
Find the application here: https://www.app.grants.gov.on.ca/msrf/#/
General notes for businesses on how Covid benefits are treated for tax purposes:
- CEWS/TEWS payroll subsidies for employers: These amounts will reduce your payroll costs and are counted as a reduction of expenses in your financial records.
- CEBA – business loans. https://ceba-cuec.ca/ Intended to assist businesses to cope in the pandemic. Funds can be used to defray costs, either due to loss of revenue or increased operating costs. Initial loans were offered for $40,000 and the program recently expanded to allow for a further $20,000. Business that received the initial loan can apply for the expansion (if needed), while new applicants can apply for the full $60,000. Application deadline for this program is March 31, 2021.
- CEBA loans will not incur any interest charges or require repayment until December 31, 2022, at which time the loan will convert to a regular business loan, with monthly repayments required beginning January 2023.
- OF NOTE: A portion of the CEBA loan is forgivable and does not need to be repaid – provided you are able to repay the remainder of the loan in full, by December 31, 2022. If you received $40,000 then $10,000 is forgivable, and if you received the full $60,000 then $20,000 is forgivable. The forgivable portion is taxable income that must be reported in the year the funds were received. If it happens that December 2022 rolls around and you are not able to repay the loan in full, then you no longer qualify to have a portion be forgivable, and you will have to repay the entire loan. In this case, you would already have paid tax on the portion assumed to be forgivable when you received the funds, and you would now be able to take a deduction for that same amount.