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Government programs available to support Canadian entrepreneurs through the coronavirus pandemic

Last updated: November 25, 2020

This page will be updated as new details on governmental supports for Canadian businesses impacted by COVID-19 become available.

Providing lines of credit and financial support to businesses

Business Credit Availability Program (BCAP)

BCAP will provide more than $10 billion of additional support to businesses experiencing cash flow challenges. The funds will be distributed through programs by the Business Development Bank of Canada (BDC) and by Export Development Canada (EDC).

How to access program: Businesses seeking support through BCAP should first contact their financial institutions for an assessment of their situation. Financial institutions will refer to EDC and BDC their existing clients whose needs extend beyond what is available through the private sector alone.

Working capital loans (offered through BDC)

  • 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
  • Reduced rates on new eligible loans

Co-lending program for SMEs (offered through BDC)

  • Up to $6.25 million for your operational cash flow requirements
  • Differing maximum finance amounts based on business revenues
  • 80% of financed amount provided by BDC and the remaining 20% by your financial institution
  • Provides credit and cash flow term loans to small and medium-sized Canadian businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak
  • Financial institutions can issue operating credit and cash flow term loans of up to $6.25 million to existing clients, with 80 per cent guaranteed by EDC
  • See list of the 38 financial institutions offering the BCAP Guarantee here
  • Please contact your financial institution for application details

Additional EDC Supports:

EDC also provides support through their insights, tools and advice offerings like Export Help Hub. Through a MyEDC account Canadian businesses can access free services and information. Standard EDC programs are also available to support Canadian companies with international trade.

Canada Emergency Business Account (CEBA)

Allow banks to give up to $40,000 in government-backed loans to most owner-operated small businesses, to help them cover their operating costs during this time when their revenues are temporarily reduced. There is zero interest on the loan until December 31, 2022. By repaying 75% of your loan on or before December 31, 2022, you can keep the remaining 25% (up to $10,000). If the loan cannot be repaid by December 31, 2022, it can be converted into a 3-year term loan with an interest rate of 5%. Contact your primary financial institution to apply.


  • The business is Canadian-based and in operation as of March 1, 2020
  • The business’s 2019 payroll was between $20,000 and $1.5 million
  • The loan is used to continue or resume operations
  • You have not previously used the program and will not apply for it at a different financial institution
  • The business has a federal tax registration
  • Additional requirements can be found here.

Innovation Assistance Program

  • Offered through the Industrial Research Assistance Program (IRAP)
  • IRAP IAP provides a wage subsidy to eligible employers for up to 12 weeks.
  • SMEs pursuing technology-driven innovation who have been unable to secure funding under the Canada Emergency Wage Subsidy (CEWS) are eligible and can apply for financial assistance under IRAP IAP.
  • November 6, 2020 update: The Government of Canada announced over $155 million to extend Innovation Assistance Program funding for existing recipients. Over the coming weeks, existing IAP recipients will be contacted with more information.

Canada Emergency Rent Subsidy (CERS)

  • Canadian businesses, non-profits or charities who lost revenue due to COVID-19 may qualify for a subsidy (up to 65%) to cover part of commercial rent or property expenses. The program runs from September 27, 2020 until June 2021.
  • If you are eligible for the base subsidy, you may also qualify for lockdown support if your business location is significantly affected by a public health order for a week or more.
  • Applications now open: As of November 23, 2020, you can submit applications for the first period of the program (September 27 to October 24, 2020). A CERS application must be filed no later than 180 days after the end of a claim period. You can apply for the next period (October 25 to November 21, 2020) as of November 30, 2020. See the CERS Technical Guidance page for support.

Support for Indigenous-owned Businesses

  • Loans of up to $50,000 will be available to small and medium-sized businesses that are either ineligible for, or unable to access, existing federal and provincial COVID-19 response initiatives for small businesses.
  • Loans will be available through Aboriginal Financial Institutions.
  • Up to 50% of each loan will be in the form of a non-repayable grant, with no interest due on the loan portion until December 31, 2022.

The Regional Relief and Recovery Fund (RRRF)

  • Provides financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic
  • The fund, valued at more than $962 million nationally, is delivered by Canada’s six regional development agencies.

Southern Ontario

  • $213 million for SMEs facing financial pressure
  • Supports southern Ontario SMEs that do not qualify for, or have been declined for, current Government of Canada COVID-19 relief measures.
  • Applicants have two options:
    • Option 1 – Up to $40K conditionally repayable interest-free loan, repaying 75% on or before Dec 31, 2022, will result in forgiveness of up to 25% (or $10K).
    • Option 2 – Between $40K and $500K fully repayable, interest-free loan.
  • View additional program guidelines here.

View details for other regional development agencies: Northern Ontario, Atlantic Canada, Quebec, Northern Canada, Western Canada

Programs to help companies make payroll


  • This adjustment program is designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. 
  • What’s new: The Government of Canada will enhance this program at an estimated cost of $12 million to help employers who are experiencing a downturn in business due to COVID-19, and their workers.

Features of the Work-Sharing (WS) program

  • A WS unit is a group of employees with similar job duties who agree to reduce their hours of work over a specific period of time
  • The unit needs to reduce their hours by the same amount and can share work
  • The unit must reduce their hours by 10% – 60%, and they can vary week to week as long as the average work reduction hours does not exceed 10% – 60%
  • A WS agreement has to be a minimum of 6 consecutive weeks long and can last up to 38 weeks. Employers may be able to extend their agreements up to a total of 76 weeks

Additional resource: Webinar Recording: Understanding Canada’s Work-Sharing Program

Canada Emergency Wage Subsidy 

  • Provides eligible businesses a subsidy of  employee wages for up to 24 weeks, retroactive from March 15, 2020, to December 19, 2020
  • Applications available through the Canada Revenue Agency’s “My Business Account” portal
  • Calculate your potential subsidy amount here.


  • You are an eligible employer if you have seen revenues decrease by 15% in March 15 to April 11 (claim period 1) or 30% for following claim periods due to COVID-19.
  • Eligible employers includes individuals, taxable corporations, partnerships consisting of eligible employers as well as non‑profit organizations and registered charities.
  • See details on claim periods, and how revenue is calculated here.

October 4 update: A proposal has been made to continue the CEWS until June 2021, including possible changes to the rates and top-up calculation.

August 21 update: extension for furloughed employees by 4 weeks – from August 30 to September 26.

July 27 update: changes to program have been approved: extension of the subsidy to December 19, 2020 and changes to the eligibility requirements and subsidy amounts (goal to make the subsidy more accessible to a broader range of employers). Further details on the new program structure can be found here.

Additional resource: Webinar Recording: Understanding Canada’s Emergency Wage Subsidy

10% Temporary Wage Subsidy 

  • A three-month measure allows eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA)
  • 10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee to a maximum of $25,000 total per employer
  • Note: this is a separate program from the Canadian Emergency Wage Subsidy


  • You are eligible if you are a Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction, an individual, partnership, non-profit corporation, or registered charity;
  • have an existing business number and payroll program account with the CRA on March 18, 2020; and
  • pay salary, wages, bonuses, or other remuneration to an eligible employee

For further information, please see this FAQ page.

Added flexibility for corporate taxes

  • T2 Corporation Income Tax Returns: The CRA will allow all businesses to defer T2 corporation income tax returns otherwise due in June, July or August, to September 1, 2020. As previously announced, any income tax balance due on or after March 18 and before September 1 will also be due by September 1, 2020.
  • The Liaison Officer service is now available over the phone to help owners of small businesses to understand their tax obligations. 

Direct wage support for employees 

Emergency Response Benefit (CERB) 

  • The Canada Emergency Response Benefit (CERB) gives financial support to employed and self-employed Canadians who are directly affected by COVID-19
  • If you are eligible, you can receive $2,000 for a 4-week period (the same as $500 a week).


  • Who have stopped working because of reasons related to COVID-19 or are eligible for Employment Insurance regular or sickness benefits or have exhausted their Employment Insurance regular benefits or Employment Insurance fishing benefits between December 29, 2019 and October 3, 2020;
  • Who had employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and,
  • Who have not quit their job voluntarily.

Note: The CERB was announced on March 25, 2020 as a more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.

See our article, “How to apply for the CERB,” for more details.

Boost to Child Benefit payments

  • Increase to the Canada Child Benefit (CCB) for the 2019-20 benefit year, $300 per child

GST/HST Credit 

  • A tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay. It may also include payments from provincial and territorial programs.

Support in assessing and navigating funding options  

Business Resilience Service

  • A national, bilingual hotline service operated by the Canadian Chamber of Commerce
  • Aim is to help entrepreneurs and small business owners in need of financial planning advice, particularly those who may not have access to an accountant
  • Open to small business owners with pressing financial needs can call seven days a week, from 8 a.m. to 8 p.m. (ET)
  • Call: 1-866-989-1080 (toll-free)

Regional Development Agencies: Support for business during COVID-19

Canada’s Regional Development Agencies (RDAs) can assist small- or medium-sized businesses that need assistance. They provide:

  • Support in accessing federal funding programs
  • Advice and pathfinding services to other federal programs and services

If you are already receiving RDA funding, you may be eligible to receive additional funding and/or flexible arrangements. 

Directory of Canada’s Regional Development Agencies:

Active Funders in Canada List

Hockeystick has compiled a list of active funders that is broken down by type of funding: equity, lenders, government and programs.

Further resources: