COVID-19 Financial Relief for Businesses

It’s not unusual for businesses to face financial challenges and require additional financial support. However, with the financial strain of the COVID-19 pandemic, more businesses need financial assistance than we’ve seen in more than a decade.


Even companies that were stable and projecting growth for 2020 now find themselves struggling to stay in business. This is a shock to the owners and managers, who find themselves in a position they never expected to be in.

AUTHOR
Barbara Cowper
Managing Director

Barbara is a Managing Director with the Corporate Finance group at Farber. She focuses on arranging innovative financing solutions for companies in a broad array of industries. Barbara has extensive experience in financial restructuring and has been involved with a diverse mix of clients from professional firms and construction companies to private schools and manufacturers.

While this pandemic—and many of the measures being taken to control it—is unprecedented, the efforts by the Canadian, Provincial and local municipal governments to keep businesses and families afloat are also unmatched in recent history. Various COVID-19 financial relief options are newly available.

This includes the new Canada Emergency Business Account—available through your primary financial institution—and the Small and Medium-sized Business Loan and Guarantee program from the Business Development Bank of Canada (BDC). Through this relief program, qualified businesses can obtain:

  • additional credit and liquidity options from Canadian financial institutions, backed by BDC and Export Developments Canada (EDC)
  • working capital loans of up to $2 million with flexible repayment terms (such as principal postponements)
  • reduced rates on new eligible loans
  • and, for existing BDC clients with a total BDC loan commitment of $1 million or less, flexible repayment terms (such as postponement of principal payments) for up to six months

The global health and economic situation is changing day-to-day. Likewise, the various relief efforts are evolving in real-time, which can make it difficult for business owners to keep track. Farber has already worked with small and medium-sized businesses to coordinate with the BDC and establish their eligibility for these relief funds, so are able to provide guidance if needed.

If your business meets the following criteria, you may be eligible for this financial relief:

  • your small- or medium-sized business has been operating for a year or longer
  • COVID-19 has negatively and substantially affected your business
  • your business was financially viable before the pandemic
  • you require $500,000 or more in financing
  • you have unsubstantial cash and/or do not have additional funds available on an existing line of credit with a bank

Farber is no stranger to distressed situations—in fact, we often say that it’s in our DNA to help others find their way through difficult situations. While current circumstances may be unique, one thing remains constant – the knowledge, expertise, connections, and dedication we have to help our clients through difficult times.

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Our Contributors

Barbara Cowper is a Managing Director with the Corporate Finance group at Farber. She focuses on arranging innovative financing solutions for companies in a broad array of industries. Barbara has extensive experience in financial restructuring and has been involved with a diverse mix of clients from professional firms and construction companies to private schools and manufacturers. Barbara can be reached at bcowper@farbergroup.com or at 416.496.3760

Glenn Bowman is a Senior Managing Director and leader of the Corporate Finance practice of Farber. His practice focuses on advising clients on acquisitions and divestitures—covering a broad array of industries from owner-managed businesses to multinational corporations—private debt and equity financings, financial restructurings, business and securities valuations, and fairness opinions. Glenn can be reached at gbowman@farbergroup.com or at 416.496.3192