If you or your business has been impacted by the COVID-19 pandemic, you will likely be aware of some of the major economic benefit programs established by the Federal government, including the Canada Emergency Response Benefit (CERB), Canada Emergency Wage Subsidy (CEWS), and Canada Emergency Business Account (CEBA).
These benefits, due to their wide availability and unprecedented extent of support provided, have been closely followed by the media and other tax reporting sources. There are several other smaller benefits and relief initiatives at both the federal and provincial levels of government that have received less attention, but nevertheless may help provide a much-needed boost to those in need of support to overcome the impacts of COVID-19. Here are a few of the lesser known benefits that taxpayers should be aware of and consider if they may be available to you.
Alberta Small and Medium Enterprise Relaunch Grant
This grant is offered by the Alberta Provincial Government and offers financial assistance to Alberta businesses, cooperatives, and non-profit organizations that were ordered to close or curtail operations, and that experienced a revenue reduction of at least 30%, as a result of the COVID-19 pandemic.
The first phase of this program allows eligible organizations to apply for a grant of 15% of their pre-COVID-19 monthly revenue, up to a maximum of $5,000 in funding which can offset the costs they are facing as they relaunch their businesses.
Organizations may be eligible if they experienced a 30% revenue reduction in April or May 2020 due to the COVID-19 pandemic (as compared to April 2019, May 2019, or February 2020).
Applications for this grant will be open until March 31, 2021 unless otherwise communicated.
UPDATE - The second phase of this program was also recently announced and will allow businesses affected by the public health orders in effect from November 6, 2020 and later to apply for a second round of funding of up to $15,000. More information on this phase is expected to be released at a later date.
For additional information including further eligibility criteria and how to apply, visit https://www.alberta.ca/sme-relaunch-grant.aspx
One-time Payment to Persons with Disabilities
This non-taxable, non-reportable, one-time payment provides up to $600 in recognition of the extraordinary expenses incurred by persons with disabilities during the COVID-19 pandemic.
You will automatically be issued this payment if:
- you have an existing valid Disability Tax Credit (DTC) certificate from the Canada Revenue Agency (CRA);
- you are eligible and applied for the DTC by December 31, 2020; or,
- you are a beneficiary as at July 1, 2020 of:
- Canada Pension Plan Disability (CPPD)
- Quebec Pension Plan Disability Pension (QPPD)
- Veterans Affairs Canada (VAC) disability supports provided to veterans (War Service and Canadian Armed Forces) and former Royal Canadian Mounted Police
For additional information on this benefit visit https://www.canada.ca/en/services/benefits/covid19-emergency-benefits/one-time-payment-persons-disabilities.html
Regional Relief and Recovery Fund (RRRF)
Western Economic Diversification Canada (WD) will provide eligible small- and medium-sized enterprises (SMEs) who did not qualify for the Canada Emergency Business Account (CEBA) loan with an interest-free repayable contribution of up to $40,000 to help alleviate financial hardship resulting from COVID-19.
Eligible business must meet the following mandatory criteria:
- Have fewer than 500 full-time employees (FTEs)
- Are located in Western Canada (defined as British Columbia, Alberta, Saskatchewan or Manitoba)
- Are not located in a rural area serviced by a Community Futures (CF) office
- Are not eligible for the “RRRF – Community Futures Stream”
- Are not eligible for the “RRRF – Women’s Enterprise Initiative Stream”
- Have applied and were declined for funding from the Canada Emergency Business Account (CEBA) or were not eligible for CEBA funding
- Were operational as of March 1, 2020
- Have suffered financially because of the COVID-19 pandemic
- Intend to continue operations in Western Canada
This loan program provides similar terms to the CEBA loan with Repayment of 75%, or up to $30,000, of the contribution amount, on or before December 31, 2022, will resulting in forgiveness of 25%, or up to $10,000 of the total contribution, and no scheduled monthly repayments required until after December 31, 2022.
Similar loans are also available in rural areas through Community Futures (RRRF – Community Future Stream) and for women-owned or women-led businesses (RRRF – Women’s Enterprise Initiative Stream)
For more information on these programs visit the links below:
RRRF – Funding Requests up to $40,000 https://www.wd-deo.gc.ca/eng/20060.asp
RRRF – Community Futures Stream https://www.wd-deo.gc.ca/eng/20065.asp
RRRF – Women’s Enterprise Initiative Stream https://www.wd-deo.gc.ca/eng/20077.asp
Reduction in Registered Retirement Income Fund (RRIF) Minimum Withdrawal
The minimum required withdrawal for all types of registered retirement income funds (RRIFs) has been reduced by 25% for the year 2020. Individuals who have already withdrawn more than the reduced 2020 minimum amount will not be permitted to re-contribute the excess amount back into their RRIFs. Tax will only be withheld if you withdraw more than your unreduced minimum amount.
For more information on this measure visit https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/registered-retirement-savings-plans-registered-retirement-income-funds-rrsps-rrifs/economic-statement-measure-annuitants-rrsp-rrif.html
One-time Non-taxable Employee Reimbursement for Office Equipment
In light of the impact of the pandemic on the current work environment and the shift towards more employees working from home, the CRA has recently commented that it would allow employers to provide employees with a one-time non-taxable reimbursement of up to $500 per employee for the purchase of personal computer or office equipment (including office furniture). The payment will be considered a deductible expense to the employer and employees receiving this benefit should be encouraged to retain receipts for the purchase of supplies to support the non-taxable nature of this benefit.
If you have any questions about these or any other COVID-19 relief measures visit our main blog page at https://gh-a.com/blog.html or contact Gregory Harriman & Associates LLP by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone at 1-403-934-3176.
Disclaimer
The information in this publication is current as of November 24, 2020.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Gregory, Harriman & Associates LLP to discuss these matters in the context of your particular circumstances. Gregory, Harriman & Associates LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.