To help the financially affected business due to the COVID-19 pandemic Canadian government is taking robust steps. The government hopes that these steps will help to save jobs and stabilize the economy.
According to the professionals of Merchant Cash Advance in Canada, the economic plan that has been released by the government explains how they will be providing financial support access to credits and loans to businesses located in Canada.
In the following section of this article, we have explained the different loans and financial supports that the government is providing to businesses.
Canada Emergency Business Account Interest-Free Loan
To help cover the operating costs of small businesses and nonprofits, the Canada emergency business account has decided to provide up to 40000 dollar loans. They hope that this loan amount will help small businesses and nonprofits cover their operating costs as their revenues have been reduced temporarily due to the COVID-19 pandemic.
Export Development Canada and the banks and credit unions of the country are collaborating to implement this program across the nation. Small business owners and nonprofits can apply for this financial loan through their credit unions and Merchant Cash Advance in Canada.
You May Read: Business Ideas in This Pandemic
Guaranteed Loan for Small and Medium-Sized Enterprises
Export Development Canada along with different financial institutions in the country is implementing a business credit availability program. This program will offer small and medium-sized enterprises cash flow term loans of about 6.25 million dollars and 80% of fresh operating credits. Both the non-exporting and exporting companies can apply for this loan.
Call Lending Program for Small and Medium-Sized Enterprises
Along with different financial institutions of Canada Business Development, Merchant Cash Advance in Canada is providing long-term loans through the business credit availability program. Through this program, SMEs can get loans of up to 6.25 million dollars to fulfill their operational cash flow requirement.
The amount of the loan will be dependent on the business revenues of the small and medium-sized enterprise’s prices. The businesses can apply for this loan through their different credit unions and banks.
Regional Relief and Recovery Fund
To the regional belief and recovery fund, the Canadian government is offering nearly 962 million dollars to help organizations. Businesses from different sectors like technology manufacturing tourism that are essential to regional and local economics can obtain this financial help.
Canada Emergency Commercial Rent Assistance
Canada emergency commercial rent assistance offers financial help to small business tenants that are struggling financially due to the COVID-19 pandemic. This program will make sure that the property owners reduce their rent by at least 75% for April, May, and June.
Through this program, Merchant Cash Advance in Canada will take care of 50% of the rent the small business tenant has to pay about 25% of the rent. The property owners have to forgive the rest of the 25% during this period. The reduction of rent for April and May is retroactive.
Meat Market Financing Program
The Midmarket financing program of business development Canada will offer business loans between 12.5 million dollars and 60 million dollars. Business Development Canada is offering this commercial loan through the business credit availability program of the country.
This loan is offered only to medium-sized businesses whose credit size is bigger than any other financial measures available in business credit availability programs or other financial programs of the Canadian government.
You May Read: COVID-19 Financial Impact on the Economy
Mid-Market Guarantee and Financing Program
The target of this program is to bring liquidity to companies with tentative revenue between 50 million dollars to 300 million dollars. Market guarantee and financing program offers this loan to the companies so that they can sustain their operations during this financial turmoil.
The market guarantee and financing program is offering this loan through the business credit availability program of the Canadian government. The size of the loan can vary from 16.7 5 million dollars to 80 million dollars. Starting from the exporter’s businesses that offer their products and two different services within the country to international investors, anyone can apply for this loan.
To know if you are eligible for such financial help provided by the Canadian government with the help of your Merchant Cash Advance in Canada, you should keep tabs on the news. You can also get in touch with your bank and credit unions to know more about searching for financial help that can help you to keep your business afloat.