weekly rennie bulletin: economic initiatives - May 22, 2020

weekly rennie bulletin: economic initiatives - May 22, 2020

POLICY BULLETIN - 22 MAY 2020

your rennie bulletin

what you need to know about the latest COVID-19 initiatives in canada

• In response to the anticipated disruptions caused by the spread of COVID-19, Canada’s federal government, the government of British Columbia, local governments, the Bank of Canada, and other institutions are taking steps to help mitigate the negative effects. • rennie will publish a summary of the latest policy changes, financial market interventions, and other relevant actions introduced in the preceding week or weeks. • This summary includes all announcements between May 9th and May 22nd, 2020.

government of canada The PM has announced $75 million “for organizations that address CRITICAL NEEDS OF INDIGENOUS PEOPLE living in urban centres and off-reserve” The COMMERCIAL RENT PROGRAM application portal opens May 25th The LARGE EMPLOYER EMERGENCY FINANCING FACILITY (LEEFF) is open for applications, providing loans to large companies that need liquidity during the pandemic • Provides bridge financing to Canada’s largest employers (sales of at least $300 million/year) • Companies that use LEEFF will not be disqualified from receiving the CEWS • Companies “must demonstrate how they intend to preserve employment” • Companies are ineligible if they have already entered insolvency proceedings • Companies that receive loans under LEEFF will have limits placed on dividend payouts, share buy- backs, and executive pay BORDER RESTRICTIONS with the US have been extended an additional 30 days Canada’s NATIONAL PARKS will begin to re-open at the beginning of June New grants for FISH HARVESTERS have been announced: for those expecting a 25% drop in income this season, support will cover 75% of losses up to $10,000

The CANADA EMERGENCY WAGE SUBSIDY will be extended to the end of August, with the 30% revenue decline qualification to be reviewed over the next month Program eligibility will also be broadened by including the following: • Partnerships that are up to 50% owned by non- eligible members • Indigenous government-owned corporations that are carrying on a business, as well as partnerships where partners are Indigenous governments and eligible employers • Registered Canadian Amateur Athletic Associations • Registered JournalismOrganizations • Non-public colleges and schools, including institutions that offer specialized services such as arts schools, driving schools, language schools, or flight schools A new $2.5 billion income support program has been announced for SENIORS with the following one-time payments being made automatically within the next few weeks: • $300 for those eligible for the Old Age Security (OAS) pension • $200 for those eligible for the Guaranteed Income Supplement (GIS) • For those receiving both OAS and GIS, the payments will be combined for a total of $500

For further information please contact Ryan Berlin ([email protected]) or Andrew Ramlo ([email protected]). The information set out herein (the “Information”) is intended for informational purposes only. RAR & RMS has not verified the information and does not represent, warrant or guarantee the accuracy, correctness and completeness of the information. RAR & RMS does not assume any responsibility or liability of any kind in connection with the information and the recipient’s reliance upon the information. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information may change any time without notice or obligation to the recipient from RAR & RMS.