Who is covered and who is left out when it comes to COVID-19 financial relief
Employees have several programs available; self-employed and small business owners worry about their futures
Jennifer Sweet· CBC News· Posted: Mar 24, 2020 9:00 AM AT
James Couture is a self-employed French-English interpreter, whose jobs have dried up due to the COVID-19 outbreak. (Submitted by James Couture)
A number of financial assistance programs are available to people who aren't working due to the COVID-19 outbreak, but some say more needs to be done for those who work for themselves or run a small business.
"I don't think I'm eligible for anything," said James Couture, who operates a simultaneous French-English interpretation service, based in Fredericton.
The federal government's COVID-19 economic response includes employment insurance benefits, an emergency care benefit and an emergency support benefit.
"None of that is going to help me," said Couture.
"There's going to be a lot of people falling through the cracks on this."
Couture had booked jobs on about 20 days per month, from March through June, but the cancellations are piling up.
"That's just going to be wiped off the map."
Couture said he has enough money set aside to hold out for a few months, but he expects it will be quite a while before anyone is gathering in large groups for meetings again, which is the type of event he relies on for work.
"It's going to hurt. There's no doubt about that."
Opposition politicians at the federal and provincial levels are also zeroing in on the absence of a specific income support program so far for the self-employed.
Conservative Leader Andrew Scheer is calling for HST refunds for small businesses that are severely affected by the COVID-19 pandemic. (CBC)
Federal Conservative Leader Andrew Scheer is calling for the refunding of GST remittances to small businesses that collected them over a minimum of the last six months
Tax relief
Couture said he would welcome some tax relief.
"Taxes are due. HST is due. I'd like to see them tell business owners they don't have to pay their HST for the next quarter."
"That would be great," said Couture. "That would help, absolutely it would help."
The federal government has already announced that it's deferring income tax payments until September.
Wage subsidies and business loans
The Conservatives are also advocating for a significant increase in the wage subsidy as a way to help small businesses.
The federal government is proposing a three-month wage subsidy that would be available to small businesses, as well as non-profits and charities.
It would be worth 10 per cent of an employee's pay to a maximum of $1,375 per worker and $25,000 per employer.
In order to make it easier for small businesses to get their credit extended, the federal government has reduced the rate of capital that banks are required to hold to protect themselves against vulnerabilities.
That measure is expected to inject $300 billion in lending into the economy.
And another $10 billion will flow through the Business Development Bank of Canada and Export Development Canada, mainly to support "credit solutions" for small and medium-sized businesses with private sector lenders.
No provincial programs
Provincially, the opposition Liberals are calling for the Progressive Conservative government to introduce some kind of help for small businesses and the self-employed as soon as possible, especially for those who have had to shut down due to the state of emergency.
Provincial Liberal finance critic Roger Melanson says small business owners are worried about how they are going to pay their bills and the provincial government should announce an assistance program soon. (CBC)
"It's an issue of cash flow," said finance critic Roger Melanson.
"They don't have any money coming in," he said.
"They are obviously worried about feeding their families and paying their basic expenses."
Andrew Harvey, the Liberal critic for economic development, suggested the province adopt a program like the one Prince Edward Island has announced.
PEI is offering $500 per week for self-employed Islanders who are significantly affected by the pandemic and emergency financing for small businesses through a loan of up to $100,000 with a fixed interest rate of four per cent.
Harvey acknowledged that Premier Blaine Higgs has indicated the province is looking at what gaps need to be addressed before announcing its support programs.
"I think people would like to hear from the province very soon," said Melanson. Couture agreed.
"I'd like to see something. You know, rent and everything is going to have to be paid."
Employment Insurance
People who are laid off due to work closures can apply for federal employment insurance benefits.
That's if you have worked a minimum number of hours in the past year, which varies from region to region.
In the EI region known as Fredericton-Moncton-Saint John, where the unemployment rate is 6.3 per cent, a minimum of 665 work hours in the past year is required.
In Madawaska-Charlotte, the unemployment rate is 7.2 per cent and 630 hours are needed.
The Restigouche-Albert region's rate is 11.2 per cent and it takes 490 hours of work in the past year to qualify for EI benefits.
In order to get this type of EI benefit you also need a "record of employment" document from your employer.
That ROE should be completed in a specific way in order to expedite the application process.
If any comments are written in Box 16, Reason for Separation, the application gets taken out of the automatic processing system and is flagged for review by an agent.
Service Canada has asked people to use the following codes:
Code A - a shortage of work or shutdown due to COVID-19
Code D - the employee is sick or quarantined.
Code E - the employee quit because of COVID-19
Code N - the employee has taken a leave of absence due to COVID-19
People who can't work because they are self-quarantined can also apply for EI sickness benefits.
A minimum of 600 hours of work in the past year is required to qualify for this program.
A record of employment is not required, nor a doctor's note, and the normal one-week wait period has been waived.
This program pays out 55 per cent of your insurable earnings to a maximum of $573 a week for a period of up to 15 weeks.
Emergency Support Benefit
People who have been laid off, but don't qualify for EI are going to be able to apply for a new Emergency Support Benefit.
But there's no word yet on what it will take to qualify and how much it will pay out.
Federal officials say applications will open next month via the Canada Revenue Agency and Service Canada.
Emergency Care Benefit
People who are self-quarantined and don't qualify for EI, will be able to apply for the Emergency Care Benefit.
It's intended for people who are sick with COVID-19, caring for a family member with COVID-19, caring for children due to school closures, or otherwise quarantined.
This is currently the only benefit available to people who are self-employed.
The benefit will be worth up to $900 biweekly for a period of up to 15 weeks.
As with the Emergency Support Benefit, applications aren't open yet. They are expected to be available sometime next month.
Workers' compensation
Provincially, workers who contract COVID-19 through workplace exposure can apply for WorkSafe benefits.
Claims will be adjudicated case-by-case, said WorkSafeNB.
Evidence has to show infection arose out of and in the course of employment and that the risk of contracting the disease through the employment was greater than the risk associated with contracting it through daily life.
WorkSafe benefits are not available to workers who don't go to work for preventive reasons.
Other proposed measures
MPs are reconvening Tuesday to vote on other proposed COVID-19 measures. Proposed measures include:
increasing GST credit payments and Canada Child Benefit payments.
setting up an Indigenous Community Support Fund.
implementing a six-month interest-free period on student loans.
reducing the required minimum withdrawals from Registered Retirement Income Funds and registered pension plans while the markets are down.
funding equipment such as beds and barriers to implement social distancing and reduce overcrowding in homeless shelters and women's shelters.
David Amos Methinks there are many New Brunswicker's who would have a very hard time finding empathy to support Mr Couture and his lament N'esy Pas?
Lou Bell
Reply to @David Amos: Another example of why bilingualism is so expensive to a poor province.
Dan Lee
Reply to @Lou Bell: yes and feeding tax dollars to all Fredericton is just too costly for Moncton and area.................
Marguerite Deschamps
Reply to @David Amos: Yet, I still have empathy for you who do not have a Medicare card.
Lou Bell
Reply to @Dan Lee: Moncton and area has been fed tax dollars for decades ! They just missed out on another 130 million undisclosed dollars from the Liberals before the last election ! And we thought 30 million to Saint John was too much !!!
Marguerite Deschamps
Reply to @Lou DumBell: Very generous of you to be ready to give up your mother language make New Brunswick a unilingual French-speaking province!
Marguerite Deschamps
It should not be a problem for you given that you made 86 on your French exam, I might add.
Gordon Edwards
Reply to @David Amos: Why? Because there is no support in NB for small business? Because it is a translation service? Because Mr Couture ate your cookie? Your incessant ramblings and half statements only make sense if you provide the context for them. Insider jokes only work if the audience goes beyond the voices in your head, n'esy pas?
David Amos
Reply to @Gordon Edwards: Too Too Funny Methinks you don't understand because so many of my words explaining matters go "Poof"
Perhaps you should ask Higgy and his buddies Vicky, Krissy and Davey what I am talking about They are the party leaders making backroom deals Better yet if you truly are curious you can simply Google Dominic Cardy Butter Tarts and start reading or give me a call Nesy Pas?
David Amos
Reply to @Marguerite Deschamps: Pure D BS
David Amos Methinks this is some news I have been alluding to for days that Mr Jones has yet to reveal for some strange reason. Anyway trust that the EUB just decided to adjourn both the following matters "Sine Die" just like I predicted much to the chagrin of many political pundits N'esy Pas?
Matter 452 - NB Power Application for Approval of an Advanced Metering Infrastructure Capital Project
Matter 458 - NB Power 2020-2021 General Rate Application / Instance no 458 - Énergie NB Demande générale de tarifs pour 2020-2021
Roger Richard
Reply to @David Amos: To postpone the smart meters is good because it will give time for the population to get informed. Most people do not realize the harm those devices are doing to our health.
David Amos
Reply to @Roger Richard: C'est Vrai Mon Ami
Roy Nicholl HST refunds are not going to help residential landlords (they do not collect GST/HST) and are not eligible.
The word from the province (NB) thus far is no deferrals on property tax bills (due in May);
Similarly, our initial enquires to the banks for details about their offers on mortgage payment deferrals have thus far indicated they are only for owner-occupants.
Naturally, evictions for non-payment have been frozen in most jurisdictions. While this is a necessary measure for those tenants who are suddenly out of work/school, property owners are going to be squeezed in a month or two.
SarahRose Werner
Reply to @Roy Nicholl: "Though business property taxes must be paid by May 31, late penalties will be reviewed on a case-by-case basis to see if the penalty can be waived due to undue financial challenges, such as having to close a business due to COVID-19." - NB government news release 20 Mar 2020.
Roy Nicholl
Reply to @SarahRose Werner: Yes ... and when you inquire further, there are only crickets
Gordon Edwards
Reply to @Roy Nicholl: Understood & agree. The key here for most business is remaining liquid through the crunch so employees have a job to return to. Tax payment deferrals, be it HST/GST or property taxes, represent direct and immediate liquidity funding into businesses.
The alternative is ugly ... wait for the government to clarify what is available, waddle through the "application" process, wait for the response ... respond to request for more information ... wait for the funds to be dispersed if you actually are approved. Oh, yes, you won't receive the full amount because the banks will take their slice of pie as well as they shuffle money from the government to, hopefully, your business.
David Amos
Reply to @Roy Nicholl: Methinks you know all the crickets on a first name basis N'esy Pas?
Lindsay McCluskey I fear the negative economic impacts from this massive global shutdown more than anything else right now. We have just created our next economic crisis with our response. I genuinely hope it was worth it.
Lindsay McCluskey
Reply to @Lindsay McCluskey: Let me be clear, as much as I worry for my father in this time, I am far more worried about the world we are leaving our kids. Climate crisis wasn't enough? Let's just crash the economy for them as well.
SarahRose Werner
Reply to @Lindsay McCluskey: The economy will recover. People who die of COVID won't.
SarahRose Werner
Reply to @Lindsay McCluskey: My parents were born in 1926 and 1931. That means they grew up during the Depression. They turned out fine. Your kids will be fine.
Lindsay McCluskey
Reply to @SarahRose Werner: Well, hindsight is 20/20. Hence your optimism. And I'm not worried about my child specifically, I'm worried about the quality of life for all children around the world. The implications of halting the global economy are far reaching and not fully understood. This may well be worse than the Great Depression.
Lindsay McCluskey
Reply to @SarahRose Werner: You're also comparing two events nearly 100 years apart. Our government and the economy have changed drastically since then. Global trade was not an important cog on the wheel yet. And your grandparents still lived in a time where they had reasonable expectations not to see their children grow up. The times have changed. This is more complicated now.
SarahRose Werner
Reply to @Lindsay McCluskey: Lindsay, I'm in my early 60s and have a slightly low white blood cell count. For me, the measures that are being put in place to control the spread of COVID are worth it. I decline to be sacrificed for the sake of your children or anyone else's children.
SarahRose Werner
Reply to @Lindsay McCluskey: I would also note that not everyone who's died of COVID has been elderly. Some of the dead have been children. Your children have *no* future if they're not alive.
Lindsay McCluskey
Reply to @SarahRose Werner: I did not debate the precautions taken. However, I will point out that the quarantine could arguably be as effective if it only applied to the high-risk groups, including the young immuno-compromised population. I will also argue that we all have immunological profiles that benefit from the exposure of new viruses to keep the collective healthier. I will also argue that work in a grocery store and live in a small town and the ABSOLUTE WORSE offenders of these safeguards are people your age and above...putting me and all my colleagues at higher risk of exposure.
Lou Bell
Reply to @Lindsay McCluskey: You'd have preferred the Great Plague over the Great Depression it appears .
Lou Bell
Reply to @Lindsay McCluskey: Then whine to them . I live in the city and the people don't appear to be so entitled as in your Community !
Lou Bell
Reply to @Lou Bell: So you'd prefer to be a part of the problem than the solution .
SarahRose Werner
Reply to @Lindsay McCluskey: No one is being required to quarantine *unless* (1) they've recently returned from another country, and (2) they have or are presumed to be infected. The current economic situation is not due to the relatively small numbers of people being required to quarantine. Everyone *is* being required to practice social distancing. The Emergency Act requiring this was only imposed after it became clear that people were not doing so voluntarily.
SarahRose Werner
Reply to @Lindsay McCluskey: I'm not responsible for the behaviour of all people my age and above any more than you're responsible for the behaviour of your entire age group. I can only be responsible for my own behaviour. I assure you, I *am* practicing social distancing and other measures.
Greg Smith
Reply to @Lindsay McCluskey: You nailed it.
David Amos
Reply to @Greg Smith: Methinks many would agree that the lady stood her ground very well against the two other women whether they agreed with her or not. Perhaps she should run for public office N'esy Pas?
David Amos
Reply to @Lindsay McCluskey: Hint Hint
Google Fundy Royal Debate to listen to an old dude who agrees with you
Gary Melanson I thought the Emergency Support Benefit covers the self employed who have no source of income ?
SarahRose Werner
Reply to @Gary Melanson: Per the federal government's website, the Emergency Support Benefit will cover self-employed folks on the same basis as other workers. The details haven't been released yet.
ROB CLARK
Reply to @SarahRose Werner: From what I understand in order to be entitled to income replacement,one must be able to prove you actually had an income ,be it from self employment or ROE's etc. The problem is there is a relativity significant segment of society whose income is derived from a variety of sources.We live on credit cards and a line of credit all year,and in December we sell some of our investments ,or some land, firewood,etc to pay off those credit cards et al.I am doubtful we will be receiving any benefits but who knows.I ,unlike others on here that look for the negative in everything, believe our various levels of government are doing the best they can in a never before seen situation.I also thank my lucky stars i happened to come out my mothers chute into the finest country on our earth ,and repeat daily that no matter how bad things are there are ALWAYS someone worse off than I.Be safe everyone we will get through this!
Gary Melanson
Reply to @ROB CLARK: Maybe last years tax returns will be used to judge monthly income averages. You are right income varies for many self employed people, seasonal fluctuations, etc.
David Amos
Reply to @Gary Melanson: Methinks it all just political rhetoric We shall see what works out best for whom when we are counting our mony months from now N'esy Pas?
ROB CLARK 55 year old male ,left job at 50 to take care of ailing wife with MS.Have been living on retirement savings for 5 years at about $25,000 per annum ,which after the last month are worth about 60% of the month before.As far as we can see there isn't anything for us except perhaps a boost in GST rebate of a couple a hundred.
But we have some provisions ahead,and we will get through this.Things are gonna be difficult for a while but remember everyone we will get through this !
Life is the only true wealth.
David Amos
Reply to @ROB CLARK: True and Good Luck to you and yours
Matt Steele Not to mention all the folks whose EI is about to expire , and their is no work to return to ; and all those folks who were counting on banking EI hours now , so that they could receive EI benefits through the winter when seasonal jobs are shut down . Many govt. employees are classified as casuals ; and they have been sent home with nothing to fall back on.....sounds like a lot of folks are about to lose everything , but the politicians will ensure that their own pockets are filled .
Richard Cyr
Reply to @Matt Steele: I tried that yesterday but my effort was thwarted my Moe and his inseparable friend Ron.
I'm one of those people who can't skip 2020. I won't last until May/June 2021. The mistake I made yesterday was to use myself as an example so lets forget that.
I'm honestly far more worried about my coworkers who are now in their 50s and have been short order cooks in this small town their entire lives. What are THEY going to do? As you correctly pointed out, most are probably already running on fumes this time of year or they will be soon.
Lou Bell
Reply to @Richard Cyr: And yet you tried to blame the province for your predicament. This is a world problem and your plight is at the National level , not the Provincial and it appeared you wanted some kind of an exemption in your case. Most of those shown positive have been people COMING INTO THE PROVINCE . Would be suicide to open the doors to them right now. Nice to be able to serve the tourists IF WE LIVE TO DO IT . You're not alone , there are millions out there with similar problems , some that were suffering even before this crisis .
David Amos
Reply to @Matt Steele: Methinks you are preaching to the choir again N'esy Pas?
yes and feeding tax dollars to all Fredericton is just too costly for Moncton and area.................
Perhaps you should ask Higgy and his buddies Vicky, Krissy and Davey what I am talking about They are the party leaders making backroom deals Better yet if you truly are curious you can simply Google Dominic Cardy Butter Tarts and start reading or give me a call Nesy Pas?