Financial Relief for Sport Clubs and its Employees

/ By: Dominik Jablecki / 0 Comments

COVID-19 was declared a pandemic by the World Health Organization on March 11th. We were aware of it prior but it’s that date that spurred a cascading effect on businesses and individuals and as a result, we’ve been forced to adapt our personal and business lives.

 

In the last few weeks, I’ve been looking for all available financial relief options for businesses and employees. I found it tough to keep up with all the resources as the econony does its best to tread water and new measures are introduced almost daily. There’s no sugar-coating the situation. Our businesses and employees are facing tough months ahead but there’s light at the end of the tunnel. 

 

The purpose of this blog post is to provide you, sport club owners, operators and employees with information so that you can use this as a quick reference guide for what financial relief may be available to you. New financial benefit and relief programs are released regularly so this is a dynamic list. In this post, I'll focus on initiatives that I’ve found are best suited for sports club and their employees.

 

I preface this post with a disclaimer that I’m not a lawyer, business consultant or advisor. I’m a business owner who finds himself in a similar position to many of you and if my research can help you and/or your business, then I’m satisfied. 


Note that all the resources provided in this post are aimed towards Canadians and Canadian Sports Clubs or Organizations.

 

What will you get out of this post?

My approach is simple. I’ll provide you with a breakdown of available government financial relief initiatives in the following format:

  • Summary of each initiative
  • When can you apply
  • Who is eligible for the initiative:
    • Corporation 
    • Non-profit
    • Individual
    • Business
  • How to apply
  • Link to more information

Let's get cracking...

 

For You and Your Employees

 

Employment Insurance (EI)

 

Summary

For all Canadians who have lost their job.

 

When Can you Apply?

Available now


Who is eligible

How to apply

More information

  • If you were recently laid off or have reduced hours and qualify for EI benefits, you can submit your request at any time. 

 

 

Canada Emergency Response Benefit (CERB)

 

Summary

Will provide up to $2,000 a month (taxable) for up to four months for club employees, contract workers and self-employed who would not otherwise be eligible for EI.

 

When Can you Apply?

April 6th, 2020

 

Who is eligible

How to apply

More information

  • Program replaces previously announced Emergency Care Benefit and Emergency Support Benefit
  • Canadians who are already receiving EI will continue to receive their benefits and should not apply to the CERB
  • Payments will be received within about 10 days of application
  • CERB will be paid every 4 weeks until October 3, 2020 
  • You must prove that you've earned at least $5000 from January 1st, 2020.

 

 

Canada Student Loan Payments

 

Summary

May be applicable to your coaches or instructors who are still paying off their student loans.

 

When Can you Apply?

There is no need to apply

 

Who is eligible

How to apply

More information

  • Any person who is currently paying off a student loan
  • No need to apply as all repayments, both interest and principal, will be suspended including pre-authorized payments

 

 

Personal Income Tax Deferral

 

Summary

You can defer your personal tax filing from the standard due date of April 30th, 2020 to June 1st, 2020. When you file your personal tax return and owe payment, you can defer the payment until September 1st, 2020.

 

When Can you Apply?

There is no need to apply

 

Who is eligible

How to apply

More information

  • All Canadian’s who file personal income taxes
  • There is no need to apply

 

 

For Your Business

 

Small Business Wage Subsidies

 

Summary

The federal government announced an up to 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive from March 15, 2020. The full details are not yet disclosed but will be in the upcoming days.

 

When Can you Apply?

Date has not been set

 

Who is eligible

How to apply

More information

  • (all members – CCPCs, individuals, partnerships or reg. charities); non- profit organizations; registered charities; and Canadian controlled private corporations (CCPCs)).
  • Eligible employer must employ one or more eligible employees (employed in Canada); have an existing business number and payroll account with the CRA on March 18, 2020 (this date is subject to be changed to March 15, 2020); and pay salary, wages, bonuses, or other remuneration to an eligible employee.
  • Clubs whose revenues has decreased by 30 per cent
  • More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the April.

  • Details will be provided in upcoming days.

 

 

Canada Emergency Business Account (CEBA)

 

Summary

This is designed for businesses and not-for-profits to help with operating costs. Ideal for Clubs that employ coaches/instructors and/or admin staff.

 

When Can you Apply?

This is determined by your financial institution



Who is eligible

How to apply

More information

  • You must be able to demonstrate that your payroll in 2019 was between $50k - $1M

 

 

Work-Sharing Program - COVID-19: Income support to avoid layoffs – (ESDC)

 

Summary

If your club employees are eligible for Employment Insurance (EI) benefits, and your club is suffering a downturn due to COVID-19, you can apply for a work-sharing agreement. The agreement would allow employees to work a temporarily reduced work week while receiving EI benefits.

 

When Can you Apply?

Available Now

 

Who is eligible

How to apply

More information

https://www.canada.ca/en/employment-social-development/services/work-sharing.html

 

 

Corporate Income Tax Deferral

 

Summary

The corporate tax return filing date has been deferred to June 1st, 2020. If your club has taxes owing after March 18th, 2020, including any 2020 corporate tax instalments, you have until September 1st, 2020 to pay.

 

When Can you Apply?

There is no need to apply

 

Who is eligible

How to apply

More information

  • All Canadian businesses that file corporate income taxes
  • There is no need to apply

 

 

Business Credit Availability Program (BCAP)

 

BDC: Small Business Loan - $10 - $100k

 

Who is eligible

How to apply

More information

  • Canadian-based businesses
  • Generating revenues for at least 24 months
  • Good credit history
  • Important to note that your club must have 2 years externally prepared financial statements.
  • Clubs with weak financial performance/balance sheets etc. may not get approved
  • This loan is to support clubs who were negatively affected by COVID-19 but financially healthy prior to COVID-19
  • Up to $100,000. No application fees. Online application process. Repayable over 5 years.
  • Use to: buy equipment, purchase extra software or hardware, apply for a patent, trademark or, other intellectual property protection which is likely not applicable to clubs
  • Eligibility: Canadian company in operation for at least 24 months.
  • https://www.bdc.ca/en/online_financing/pages/loan-application.aspx

 

 

BDC: Working Capital Loan Over $100k

 

Who is eligible

How to apply

More information

  • Canadian-based businesses
  • Generating revenues for at least 24 months
  • Good credit history
  • Important to note that your club must have 2 years externally prepared financial statements.
  • Companies with weak financial performance/balance sheets etc. may not get approved
  • This loan is to support clubs who were negatively affected by COVID-19 but financially healthy prior to COVID-19
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