Telefilm mulls funding overages due to COVID-19

The funding agency announced increased flexibility with contract requirements and defaults while maintaining its drawdown schedule for financed projects. (Unlocked)

close-up-filmstrip-negatives-133070Telefilm Canada delivered an update on its financial measures for projects that have already been promised funding, as well as potential relief for added costs from production shutdowns.

The federal funding agency says it will be flexible with its contract requirements and “will consider funding overages directly related to COVID-19.” It will also not require cancelled festivals and initiatives that were financed in 2019-20 to reimburse funds and has suspended the application of default measures until May 1, as long as the default is a direct result of COVID-19.

Telefilm says it will maintain its accelerated drawdown schedule for projects already financed. Titles in the development and promotion programs will receive 100% of funds upfront while those in the marketing program will get 70% upfront.

Telefilm is part of a national task force made up of production associations and funders to assess the overall financial impact of COVID-19 on the Canadian industry. The data gathered will be made widely available to industry members, not just participating organizations.

New details emerge regarding wage subsidies for small businesses

The Canada Revenue Agency (CRA) has provided more details on the measure to subsidize wages for small businesses impacted by COVID-19, which was announced by Prime Minister Justin Trudeau on March 17.

The Temporary Wage Subsidy for Employers will allow businesses to reduce payroll deductions remitted to the CRA between March 18 to June 20, up to $25,000 per employer or a maximum of $1,375 per employee. Businesses eligible for the subsidy must be a non-profit, a charity or a Canadian-controlled private corporation (CCPCs). A CCPC’s taxable capital employed in Canada in the preceding taxation year must be less than $15 million for the company to be eligible. Additional information is available in a FAQ page published by the CRA.

Parliament will reconvene in the House of Commons today (March 24) at noon to approve the proposed measures to provide $27 billion in emergency financial relief to individuals who aren’t eligible for EI.

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