Vital updates:

• Canada’s banks will begin accepting applications from business customers for the third phase of the federal government’s Canada Emergency Business Account (CEBA) program, starting today. As announced by the government in May, CEBA has been expanded to enable a greater number of qualifying sole proprietors, or businesses with payroll lower than $20,000, with eligible non-deferrable expenses between $40,000 and $1.5 million to apply for interest-free, partially forgivable loans of up to $40,000. CEBA is administered by Export Development Canada (EDC), which is working closely with banks in Canada to deliver the loans. Full details can be found at ceba-cuec.ca. The eligibility requirements for the program are:
  • The Borrower is a Canadian operating business in operation as of March 1, 2020.
  • The Borrower has a federal tax registration.
  • The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000. For applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year:
    • The Borrower has a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return.
    • The Borrower has eligible non-deferrable expenses between Cdn.$40,000 and Cdn.$1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.
  • The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
  • The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
  • The Borrower acknowledges its intention to continue to operate its business or to resume operations.
  • The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
• Ontario health officials are reporting 111 new cases of COVID-19 this morning, the lowest number of new cases recorded since March 25. Aside from a slight increase on Tuesday, the province has continued to report fewer than 200 lab-confirmed cases per day. Diligence and caution in Stage 2 of the provincial re-opening has led to this result. Reaching Stage 3 will depend upon the continuance of these measures. The total number of cases in Niagara remains steady. The GNCC urges all businesses to follow guidelines, to demand and allow for physical distancing for staff and customers, to provide and/or require face masks where physical distancing is difficult or impossible, to implement a rigorous cleaning and disinfecting routine, and to monitor all public health advisories.
• Canada’s highest court opened the door to a proposed $400-million class-action lawsuit against Uber today after it sided with a driver in a case over whether workers can settle disputes with the ride-hailing company through a costly, foreign arbitration process or through Ontario courts. In an eight-to-one decision, the Supreme Court of Canada ruled that drivers can have labour issues resolved through Ontario courts, opening up the possibility of Uber drivers being seen as employees within the meaning of Ontario’s Employment Standards Act. The consequences of this could change the face of the entire sharing economy.

Reading recommendations:

• 53% of Canadians support a four-day work week: Survey, staff writer, BNN Bloomberg
• Earning too much could be next problem for Canadian small businesses due to government subsidy rules, Ryan Tumilty, National Post
• How the Coronavirus Will Reshape Architecture, Kyle Chayka, The New Yorker
• ‘More action rather than words’: The long road ahead for ending systemic racism in business, Hilary Punchard, BNN Bloomberg
• How new American tariffs on Canadian aluminum could backfire, Janyce McGregor, Alexander Panetta, CBC News
• Most Competitive Economies Ranking Puts Canada Ahead Of U.S. For 1st Time, Daniel Tencer, Huffington Post