2021 Update on Government Subsidy Programs Available for Non-Profits During COVID-19
By CCVO Guest Blogger Robin Butler, Supervisor NPO Division, The Catalyst Group
In our blog post from December 2020, we looked at a number of government subsidies available for non-profits who have been impacted financially by the COVID-19 pandemic. As things seem to be changing almost daily, we have provided an update to our previous post below. For details on the subsidies themselves, please refer to our blog.
Alberta Small and Medium Enterprise Relaunch Grant
This grant is available to non-profits and charities as well as small- to medium-sized for-profit entities. For organizations established before February 29, 2020, the grant can be up to $20,000. For those established between March 1 and October 31, 2020, the grant is available up to $15,000. Information on guidelines and how to apply can be found on the Government of Alberta website. The application period is only open up to March 31, 2021, so move quickly!
Alberta Enhanced COVID-19 Business Benefit
After the closing deadline of the Small and Medium Enterprise Relaunch Grant on March 31st, applications will open for an additional grant of up to $10,000 to help small businesses and non-profits and charities which have seen revenues declines of 60% or more pay for certain operational costs. Additional details can be found in this Government of Alberta release.
Temporary Wage Subsidy (TWS)
The 10% Temporary Wage Subsidy (TWS) is no longer active – it was available for pay periods from March 18, 2020 to June 19, 2020.
Canada Emergency Wage Subsidy (CEWS)
The CEWS is perhaps the most widely used subsidy by NPOs, and also the most confusing. Specific to NPOs, when calculating revenues for the CEWS you can elect to remove government funding – this would include Municipal, Provincial, or Federal funding, including COVID funding received.
When calculating revenues for the CEWS, make sure that whatever method you use is applied consistently in both the current year and the year being compared. If you elect to remove government funding from the revenue figures, remove that funding from both the current period and the prior period for the calculation. In addition, make sure you’ve updated any deferrals to show month-to-month for both periods being compared to ensure you are comparing apples to apples, and using accurate information.
As a result of the recent Bill C-9, a number of changes were implemented to CEWS including an extension. Most recently, CEWS has been extended to apply to pay periods up to June 5, 2021. You can view these on the Government of Canada website, along with guidelines on how to calculate the subsidy.
Canada Emergency Business Account (CEBA)
This loan is intended to support non-profits by providing financing for their expenses that cannot be avoided or deferred. Many Non-profits think that this loan through financial institutions doesn’t apply to them as they aren’t for profit, but that is not the case. The full possible amount of the CEBA loan is $60,000 - if you applied for the original $40,000, you may now also apply for the extended $20,000. The deadline for applications is March 31, 2021. Learn more on the Canada Emergency Business Account website.
Alberta Gaming and Liquor Commission (AGLC) Funds
If you have a casino fund, review the extended AGLC rules for usage of these funds. The AGLC has added additional flexibility. Learn more on the AGLC website.
Canada Emergency Rent Subsidy (CERS)
This subsidy covers part of your commercial rent or property expenses if you have seen a drop in revenue due to the COVID-19 pandemic starting on September 27, 2020, until June 2021. This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords. Learn more about it on the Government of Canada website.
If you have any questions, don’t hesitate to reach out. This is unchartered territory for us all and we are all navigating together. You can learn more about all the federal subsidies available on the Government of Canada website.
About Catalyst
Catalyst works extensively with Not-for-Profits and registered charities on all accounting related matters including bookkeeping, financial and tax reporting, audit support and senior financial professional outsourcing (CFO support). They also host virtual roundtable sessions to assist charities and NPOs with their operations.
With a team of dedicated specialists in this area, Catalyst becomes a key member of the Not-for-Profit or registered charity’s team to align performance and organizational goals. There are several web-based programs that can assist in reporting requirements for a charity. Recently, Catalyst was named one of the fastest growing cloud accounting firms in Canada; they would be thrilled to bring their knowledge in this area to your organization.
Feel free to contact Robin at 403-767-1546 or robinb@thecatalystgroup.ca