Novel Coronavirus (COVID-19) PandemiC
The BC Hotel Association continues to work in close partnership with the Hotel Association of Canada, other provincial Associations, and stakeholders in the foodservice and hospitality sectors to bring you the latest information surrounding the COVID-19 pandemic.
The BCHA has been working hard on your behalf to advocate for fiscal relief and support to ensure liquidity and solvency resulting from this crisis.
We understand the COVID-19 crisis has many hotels closing, with a complete stop to cash flow, yet financial obligations remain. We have detailed the resources made available to help your business, our hope is one or several of the resources relieves some of the financial burden as we navigate this unprecedented hardship.
The BCHA has been working hard on your behalf to advocate for fiscal relief and support to ensure liquidity and solvency resulting from this crisis.
We understand the COVID-19 crisis has many hotels closing, with a complete stop to cash flow, yet financial obligations remain. We have detailed the resources made available to help your business, our hope is one or several of the resources relieves some of the financial burden as we navigate this unprecedented hardship.
bc hotel association advocacy priorities
- Financial Support
- Employee Support
- Tax Deferrals
- Insurance Support
The BCHA is currently participating in three working groups, including the Metro Vancouver Tourism and Hospitality Response and Recovery Task Force, the COVID-19 Business Cabinet, and an Economic Recovery Strategy Group, to quantify the economic impact and to ensure that all three levels are Government are listening.
Liquidity Program Options For Hotels
DEFERRAL OF CORPORATE INCOME TAX PAYMENTS
The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments. No interest or penalties will accumulate on these amounts during this period. This measure, to be implemented immediately, frees up to $55 billion in temporary tax relief, resulting in businesses having more money available during this period.
The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments. No interest or penalties will accumulate on these amounts during this period. This measure, to be implemented immediately, frees up to $55 billion in temporary tax relief, resulting in businesses having more money available during this period.
MORTGAGE PAYMENT DEFERRAL
The six largest banking institutions in Canada have made a commitment to work with personal and business banking customers on a case-by-case basis to provide flexible solutions to help them manage through various challenges. As a first step, this support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.
This will be done on a first come, first serve basis and requires a direct call to your bank. The Government has a strong commitment from banks that they will be flexible. We are encouraging all hoteliers to do this immediately.
Here are the helplines for each institution, which they have bolstered with more support:
BMO: 1- 877-788-1923
CIBC: 1-877-454-9030
RBC: 1-800-769-2511
Scotiabank: 1-833-315-4357
TD: 1-888-730-0075
National Bank of Canada: 1‑844‑394‑4494
Please let us or the Hotel Association of Canada know if you run into challenges or are denied flexibility. Cases can be taken back to Government.
The six largest banking institutions in Canada have made a commitment to work with personal and business banking customers on a case-by-case basis to provide flexible solutions to help them manage through various challenges. As a first step, this support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.
This will be done on a first come, first serve basis and requires a direct call to your bank. The Government has a strong commitment from banks that they will be flexible. We are encouraging all hoteliers to do this immediately.
Here are the helplines for each institution, which they have bolstered with more support:
BMO: 1- 877-788-1923
CIBC: 1-877-454-9030
RBC: 1-800-769-2511
Scotiabank: 1-833-315-4357
TD: 1-888-730-0075
National Bank of Canada: 1‑844‑394‑4494
Please let us or the Hotel Association of Canada know if you run into challenges or are denied flexibility. Cases can be taken back to Government.
BUSINESS CREDIT AVAILABILITY PROGRAM (BCAP)
This program will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses (as defined by 499 employees or less). Implemented immediately, this money should be available for hoteliers.
New relief measures for qualified businesses include:
Hoteliers should also qualify for up to $100k in as little as 48 hours from BDC. The direct online application can be found here. Note that the program does not make funds available to businesses which operate an onsite a bar or lounge, however restaurants would be acceptable. If you have any issues with this application, please reach out to us. The Government has asked us to flag gaps in the system that need fixing, and are willing to review hotel accounts with issues for us.
This program will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses (as defined by 499 employees or less). Implemented immediately, this money should be available for hoteliers.
New relief measures for qualified businesses include:
- Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses;
- Postponement of payments for up to six months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less; and
- Reduced rates on new eligible loans.
Hoteliers should also qualify for up to $100k in as little as 48 hours from BDC. The direct online application can be found here. Note that the program does not make funds available to businesses which operate an onsite a bar or lounge, however restaurants would be acceptable. If you have any issues with this application, please reach out to us. The Government has asked us to flag gaps in the system that need fixing, and are willing to review hotel accounts with issues for us.
10% WAGE SUBSIDY FOR SMALL BUSINESS EMPLOYERS
To support businesses that are facing revenue losses and help them keep their workers, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
To support businesses that are facing revenue losses and help them keep their workers, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
Employment Support Measures For Businesses
CANADA EMERGENCY RESPONSE BENEFIT
To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.
The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).
Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.
Canadians would begin to receive their CERB payments within 10 days of application. The CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020. The page will go live as soon as possible.
To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.
The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).
Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.
Canadians would begin to receive their CERB payments within 10 days of application. The CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020. The page will go live as soon as possible.
