The COVID-19 coronavirus has put us in uncharted territory. As Mayor I wou
ld like to let our businesses know much we value you. You are a crucial part of our community.
I know that you are hurting right now but I also know that you are strong. This is a situation like none other we have had to face and we are all worried and scared about this situation now and into the future. I encourage you to follow the instructions and guidelines given by the
Alberta Government
.
Please talk to your staff, each other and your bank, if needed. We are in a time of uncertainty and the whole world is dealing with this. This is a time that we need to work together and come up with solutions to keep businesses going or at the very least return once this crisis is over. Both the federal and provincial governments are aware of the economic situation and continue to work on programs that will assist. They have already announced changes to Employment Standards, Employment Insurance as well as extensions to the tax filing deadline. Prime Minister Trudeau just announced 27 billion in direct support for Canadian workers and businesses. We have included some of this information in this newsletter however as the situation is rapidly changing, it is important to visit the federal and provincial government websites frequently to stay informed.
The Town of Wainwright will continue to distribute information to our entire community to help everyone get information through these trying times. Please do whatever you can to Prevent the Spread and keep our most vulnerable healthy.
Stay Safe, Stay Healthy, Stay Strong!
Mayor Brian Bethune
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CANADA'S COVID-19 ECONOMIC RESPONSE PLAN
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The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak.
On March 18, 2020, the Prime Minister announced a new set of economic measures to help stabilize the economy during this challenging period. These measures, delivered as part of the Government of Canada’s COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and businesses.
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The Government of Canada is taking immediate, significant and decisive action to support Canadian businesses facing financial hardship as a result of the COVID-19 pandemic.
On March 13, 2020, Minister of Finance Bill Morneau, Governor of the Bank of Canada Stephen Poloz, and Superintendent of Financial Institutions Jeremy Rudin outlined a coordinated package of measures to support the functioning of markets, the resilience of our financial sector, and continued access to financing for Canadian businesses. These actions will significantly increase the availability of credit to businesses of all sizes, sustain liquidity in key financial markets, and provide flexibility to businesses experiencing hardship.
On March 18, 2020 the government and its partners announced further measures to support businesses. These actions are part of Canada’s whole-of-government response to COVID-19, and the significant stimulus program developed to stabilize Canada’s economy, support businesses and to protect Canadians.
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SUPPORTING CANADIAN BUSINESS THROUGH THE CANADA ACCOUNT
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The government is changing the Canada Account so that the Minister of Finance would now be able to determine the limit of the Canada Account in order to deal with exceptional circumstances. The Canada Account is administered by Export Development Canada (EDC) and is used by the government to support exporters when deemed to be in the national interest. This will allow the government to provide additional support to Canadian companies through loans, guarantees or insurance policies during these challenging times.
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HELPING BUSINESSES KEEP THEIR WORKERS
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To support businesses that are facing revenue losses and to help prevent lay-offs, 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.
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FLEXIBILITY FOR BUSINESSES FILING TAXES
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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, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
The Liaison Officer service offers help to owners of small businesses to understand their tax obligations. Traditionally available in-person, this service is now available over the phone and will be customizing information during these challenging times by ensuring small businesses are aware of any changes such as filing and payment deadlines, proactive relief measures, etc.
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ENSURING BUSINESSES HAVE ACCESS TO CREDIT
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The Business Credit Availability Program (BCAP) 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. This will be an effective tool for helping viable Canadian businesses remain resilient during these very uncertain times. BDC and EDC are cooperating with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation and tourism. The near term credit available to farmers and the agri-food sector will also be increased through Farm Credit Canada.
The Office of the Superintendent of Financial Institutions (OSFI) announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets, effective immediately. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.
The Bank of Canada also took a series of actions to support the Canadian economy during this period of economic stress, enhance the resilience of the Canadian financial system, and help ensure that financial institutions can continue to extend credit to both households and businesses. This included cutting the interest rate to 0.75% as a proactive measure in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices.
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SUPPORTING FINANCIAL MARKET LIQUIDITY
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As a further proactive and coordinated measure to bolster the financial system and the Canadian economy, the government announced on March 16 that it is launching an Insured Mortgage Purchase Program (IMPP). Under this program, the government will purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC). This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market. Details of the terms of the purchase operations will be provided to lenders by CMHC later this week.
The IMPP enhances the already substantial set of measures announced on March 13 to support the economy and the financial system. CMHC stands ready to further support liquidity and the stability of the financial markets through its mortgage funding programs as necessary.
Further, the Bank of Canada has announced that it will adjust its market liquidity operations to maintain market functioning and credit availability during the current period of uncertainty in which conditions are evolving rapidly.
The Bank of Canada also announced that it will broaden eligible collateral for its term repo facility to include the full range of collateral eligible under the Standing Liquidity Facility, with the exception of the non-mortgage loan portfolio. This expansion of eligible collateral will provide support to funding conditions for financial institutions by providing a backstop to regular private funding.
The Bank also announced that it stands ready, as a proactive measure, to provide support to the Canada Mortgage Bond (CMB) market so that this important funding market continues to function well. This would include, as required, purchases of CMBs in the secondary market. Similar to the
increase in Government of Canada bond buybacks
, this will support market liquidity and price discovery.
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CANADA'S SIX BIGGEST BANKS TAKE DECISIVE ACTION TO HELP CUSTOMERS IMPACTED BY COVID-19
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TORONTO, March 17, 2020/CNW/ - Canada's six largest banks today announced plans to provide financial relief to Canadians impacted by the economic consequences of COVID-19.
Effectively immediately, Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Bank have made a commitment to work with personal and small business banking customers on a case-by-case basis to provide flexible solutions to help them manage through challenges such as pay disruption due to COVID-19; childcare disruption due to school closures; or those facing illness from COVID-19.
This support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.
Individual Canadians or business owners facing hardship are encouraged to contact their bank directly to discuss options that could be available to them.
These measures are an important first step and underscore the resilience of Canada's financial system and the strength of our major banks, Banks will monitor evolving economic conditions and consider other measures if necessary.
Canada's banks have a long history of standing by Canadians through challenging times and this commitment will continue throughout this crisis and beyond.
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ATB COVID-19 CUSTOMER RELIEF PROGRAM
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Financial relief for eligible ATB customers affected by COVID-19
By ATB Financial 18 March 2020
We know that nothing seems normal right now. Here at home, and around the world, the spread of COVID-19 has created anxiety and uncertainty. While you may be worried about your loved ones and your community, ATB can help relieve some of your financial worries. We’ve created some relief measures to address the challenges you may be facing right now and we’ll keep working to meet your needs as the situation evolves. Together, we’ll get through this.
If you've been impacted by COVID-19, we have a few ways to help
For personal banking customers
who have experienced any kind of job loss or interruption as a result of COVID-19, we want you to be able to focus on your day-to-day needs. We can help you defer payments on any of your ATB loans, lines of credit and mortgages for up to six months* so you can put your money where it’s needed most, right now.
To discuss this option:
For small business customers
whose business has been interrupted in any way as a result of COVID-19, we want to help get you through the current challenges and give you some time to plan for what’s next. In addition to payment deferrals on loans and lines of credit, we can also provide access to additional working capital.
To discuss this option:
For all of our other business and agriculture customers
, please contact your ATB Relationship Manager to discuss your situation and your needs. We’ll help you understand your options and explore possible solutions. If you’re not sure if these options apply to you, or if you want to talk about your finances and how to move forward, call us. We’re here to listen and help.
Our phone lines are currently extra busy. We ask for your patience so that we can give everyone the time they need to talk with us.
If you have an inquiry that isn’t urgent, please consider waiting a few days before contacting us so we can help those most in need first.
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ENCOMPASS CREDIT UNION MESSAGE
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Encompass Credit Union is closely monitoring the evolving situation with respect to the COVID-19. We are continuing to review and monitor information from the Provincial Public Health Authority as well as both the Government of Canada and Government of Alberta.
We have met with our lenders to discuss the potential impact to our member businesses as well as those members who have vehicle loans, residential mortgages and other types of credit facilities with Encompass. We have also reached out to our regulators who monitor credit unions with respect to what may take place over the coming months with all our members and the difficulty that may arise with loan payments. This may include loan/mortgage payment deferrals, interest only payments, refinancing and any other acceptable arrangements determined between the credit union and our members.
These are uncertain times and we know that many of our members will be impacted due to the economic events related to COVID-19, however we do not know specifically how this will impact each of our members' businesses. Know that we are here for you and that we would ask members to reach out to our staff (account managers/personal lenders) to determine what steps may be taken together to alleviate some of the concerns.
We do not usually get or take government direction with regards to lending rules and guidelines, but that may change with the COVID-19 pandemic, we cannot be sure. We can move forward in dealing with our members on a member-by-member basis but we would want to ensure that it would be a partnership between us and the member and would require members to come with a plan of action if they are worried or have been impacted.
It is imperative that our members and business members be proactive at this time with the credit union so that we can plan to get through this together. Stay safe.
Kelly Longley, CEO
Encompass Credit Union
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The Government of Canada Employment Insurance (EI) sickness benefits provide up to 15 weeks of income replacement and is available to eligible claimants who are unable to work because of illness, injury or quarantine, to allow them time to restore their health and return to work. Canadians
quarantined
can apply for Employment Insurance (EI) sickness benefits.
Service Canada is ready to support Canadians affected by COVID-19 and placed in quarantine, with the following support actions:
- The one-week waiting period for EI sickness benefits will be waived for new claimants who are quarantined so they can be paid for the first week of their claim.
- Establishing a new dedicated toll-free phone number to support enquiries related to waiving the EI sickness benefits waiting period.
- Priority EI application processing for EI sickness claims for clients under quarantine.
Contact the new dedicated toll-free phone number if you are in quarantine and seeking to waive the one-week
EI sickness benefits
waiting period so you can be paid for the first week of your claim:
- Telephone: 1-833-381-2725 (toll-free)
- Teletypewriter (TTY): 1-800-529-3742
If you are experiencing symptoms such as cough, fever, difficulty breathing or you are in self-isolation or quarantine, do not visit or enter any Service Canada office. As an alternative, you may access our services online or by calling 1 800 O-Canada.
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The Alberta Government is taking action to protect Albertans by implementing job-protected leave.
Changes to the Employment Standards Code will allow full and part-time employees to take 14 days of job-protected leave if they are:
- required to self-isolate
- caring for a child or dependent adult that is required to self-isolate
To be eligible, employees:
- will not be required to have a medical note
- do not need to have worked for an employer for 90 days
This leave covers the self-isolation period recommended by Alberta’s chief medical officer. This leave may be extended if the advice of the chief medical officer changes.
The leave does not apply to self-employed individuals or contractors.
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While every effort is made to ensure the currency, accuracy and completeness of the information provided, The Town of Wainwright (Wainwright Economic Development) is not liable for any loss, claim or demand arising directly or indirectly from any use or reliance upon the information provided.
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