COVID 19: Financial Resources Available for Businesses and Individuals in British Columbia

This blog was originally published on April 7, 2020.

We have compiled the following summary of the resources and financial assistance that are presently available to British Columbia businesses and individuals, which you may wish to consider as you prepare to mitigate the impact of COVID-19 on your organization.

This list is intended to supplement the list of federal programs, which can be found here.

Response by British Columbia Provincial Government

On March 23, 2020, the British Columbia government unveiled its $5 billion aid package for individuals and businesses affected by the COVID-19 economic shutdown. Details on the package can be found here.

On July 21, 2020, the British Columbia government formally extended the provincial state of emergency to support the province-wide response to the COVID-19 pandemic, through the end of the day on August 4, 2020. Using the powers under the Emergency Program Act, the government has issued a series of orders to co-ordinate the supply chain for essential goods and services. The government also introduced a number of changes aimed at supporting the economy, which are detailed below.

On April 16, 2020 the British Columbia government announced a new B.C. Business COVID-19 Support Service which will be operated by Small Business B.C.  The support service will serve as a single point of contact for businesses in the province looking for more information on resources available during the COVID-19 pandemic. Starting on April 16, 2020, advisers will be available for inquiries by telephone at 1-833-254-4357, or alternatively inquiries can be emailed to covid@smallbusinessbc.ca. Details on the support service can be found here.

List of resources available to businesses in British Columbia

  • Employer Health Tax Payments: Effective immediately, businesses with a payroll over $500,000 can defer their employer health tax payments until September 30, 2020. Businesses with a payroll under this threshold are already exempt from the tax.
  • Extension of Tax Filing Deadlines: the province is extending tax filing and payment deadlines for the provincial sales tax (PST), municipal and regional district tax on short-term accommodation, tobacco tax, motor fuel tax and carbon tax until September 30, 2020.
  • Delayed PST Budget 2020 Tax Changes: the scheduled April 1 increase to the provincial carbon tax, as well as the new PST registration requirements on e-commerce and the implementation of PST on sweetened carbonated drinks, will be delayed.
  • Reduced School Tax: On April 16, 2020 further reductions to the school property tax rate for commercial properties were announced, resulting in an average 25% reduction in property tax bills. This is further to the 50% reduction to the provincial school property tax rate that was originally announced for property classes 4, 5 and 6. The date that late penalties will begin to apply has also been postponed to October 1, 2020 to allow businesses more time to pay their reduced property tax without penalty.
  • Eviction Protection: By an order made under the Emergency Program Act on June 1, 2020, landlords who chose not to apply for the federal government’s Canada Emergency Commercial Rent Assistance (“CECRA”) program which was launched on May 24, 2020, will not be able to evict their small business tenants for unpaid rent. The order restricts lease terminations, rent repayment claims and the repossession of small business’ goods and property. The order will remain in place while the CECRA program remains in place.
  • Supply Products and Services to Support B.C.’s COVID-19 Response: the B.C. government is looking for both medical and non-medical products and services to help with the response. If you can donate or supply priority products you are invited to submit an offer here.
  • The Province of British Columbia has compiled a list of COVID-19 Economic Development Resources.
  • The Province of British Columbia offers a number of free business planning and continuity resources.
  • The Squamish Chamber of Commerce has provided a joint provincial update with the B.C. Chamber of Commerce.
  • The Vancouver Economic Commission is monitoring economic impacts of COVID-19 on Vancouver’s economy and local businesses. Report the impact of COVID-19 on your business and find more resources on mitigating the impacts of COVID-19.
  • The following companies in B.C. are offering financial relief from payments:
  • City of Port Coquitlam utility bills: The City of Port Coquitlam is waiving the March 31 penalty and extending the deadline for payment of 2020 utility bills which includes water, sewer and solid waste. The payment deadline has been extended until September 30.
  • The City of Vancouver has approved a delay in the 2020 payment deadline for both commercial and residential property taxes. The new tax payment deadline is September 30, 2020.
  • ICBC: Customers on a monthly payment plan who are facing financial challenges due to COVID-19 may defer their payment for up to 90 days with no penalty.
  • WorkSafeBC: employers reporting and paying on a quarterly basis may defer payments for Q1 2020 without penalty until June 30, 2020. Employers who report payroll and pay premiums on an annual basis need not report their 2020 payroll or pay their 2020 premiums until March 2021.

The following resources are available to individuals in British Columbia:

  • B.C. Emergency Benefit for Workers: Starting May 1, 2020, eligible individuals can apply to receive a one-time $1,000 payment. To be eligible, an individual must be at least 15 years of age, be a resident of British Columbia as of March 15, 2020, been approved for the Canada Emergency response Benefit, has filed or agrees to file a 2019 B.C. income tax return, and will not be receiving provincial income assistance or disability assistance. Eligible applicants have until December 2, 2020 to apply. For more information on how to apply see this resource.
  • Climate Action Tax Credit: A one-time enhancement to the climate action tax credit will be paid in July 2020 for moderate to low-income families. An adult will receive up to $218.00 (increased from $174.00), and a child will receive $64.00 (increased from $51.00).
  • COVID-19 Support for Renters and Landlords: a new temporary rental supplement of up to $500 per month will be available to low to moderate income renters who are facing financial hardship but do not qualify for existing rental assistance programs. In addition the government of British Columbia announced halting of evictions, except in extreme cases where there are safety concerns, and freezing rent increases while the state of emergency is ongoing. Applications for the rental supplement have opened on the B.C. Housing website.
  • Student Loan Repayment Holiday: British Columbia Student Loans are automatically frozen for six months effective March 30, 2020.
  • B.C. Hydro: The COVID-19 Relief Fund is a program that offers support for residential customers who have lost their employment or have become unable to work due to COVID-19. Eligible residential customers can apply online to receive a bill credit of up to three months of their average electricity consumption. To be eligible for the COVID-19 Relief Fund, the residential customer must have had an account as of March 31, 2020, and is eligible for EI, the Canada Emergency Response Benefit or B.C.’s Emergency Response Benefit for Workers. Applications are open and customers can apply anytime until June 30, 2020.
  • Indigenous Emergency Assistance Fund: Additional Supports for Indigenous Post-Secondary Students experiencing financial pressures were announced on April 3, 2020. More information can be found here.
  • COVID-19 Support for Income & Disability Assistance: Individuals not receiving federal Employment Insurance or the Canada Emergency Response Benefit and are on Income Assistance, Disability Assistance, Comforts Allowance, or BC Senior’s Supplement will automatically receive a $300 supplement for cheques issued in April, May, June, July and August. No action is required to receive this supplement.
  • A comprehensive list of the resources available to individuals in British Columbia can be found at http://www.bc211.ca/ under Financial Assistance.

We foresee many difficult and challenging circumstances arising from the spread of COVID-19 on our clients, and we are here to help you navigate these circumstances.  In the above article, we have attempted to outline some of the more recent developments which have been implemented to assist businesses and individuals, but this list is not exhaustive, and there may be further options available to you.  If you have questions relating to your organization’s specific circumstances, please reach out to MLT Aikins for assistance.

Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.