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Public and Private COVID-19 Support Resources for SaaS Companies Across North America
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Public and Private COVID-19 Support Resources for SaaS Companies Across North America

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Monique Morden
Monique Morden
Capilano Suspension Bride, North Vancouver

We understand the unique challenges that SaaS businesses are facing and we've put together a list of support resources available to help SaaS businesses during this uncertain time.

A curated list of support resources crowdsourced from our portfolio.

At TIMIA Capital, we’ve always encouraged founders to build your SaaS with customer cash. While this is a golden rule of thumb under normal circumstances, the past few weeks have been far from normal for most of us.

The impact that the coronavirus pandemic has had on businesses across North America is unprecedented. Whatever your priorities were in the last couple of months, your new priority is to preserve and shore up as much cash as you can get your hands on so your business can survive whatever the next few months have in store.

We understand the unique challenges that SaaS businesses are facing and we reached out to our network to find out what government and private resources are available to help them navigate their business through this uncertain time.

We will continue to update this page with new information and additional resources as they become available. Note that some of this information has been sourced from third party sites so be sure to verify all information as the situation evolves daily.

Government Support for Canadian Businesses 🇨🇦

1. Avoid Layoffs and Rehire Employees

  • Canada Emergency Wage Subsidy: Provide a 75-per-cent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020. UPDATE: Employers will now only have to show that they have experienced a 15% reduction in revenue in March 2020 to claim the subsidy (instead of the previous 30% reduction), and indicated that employers can also choose to use an average of revenue for January 2020 and February 2020 to compare to their revenue for March, April, and May 2020.
    Also, according to KPMG, you can use the accrual method or the cash method of accounting (but not both) to determine revenue decline.
  • Extending the Work-Sharing Program: Program extended from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.
  • Temporary Changes to Canada Summer Jobs Program: Changes allow for employers to receive an increased wage subsidy, extend the end date for employment to February 28, 2021, and more

2. Reduce and Defer Payments

3. Get Access to Credit

  • Business Credit Availability Program (BCAP): BCAP will provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
  • Coming Soon – Canada Emergency Business Account: Will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. This program will roll out in mid-April.

Other non-government Canadian resources we like include:

Government Support for US Businesses 🇺🇸

The USA has launched a range of federal and state programs to help businesses during the coronavirus pandemic and resulting economic fallout.

1. Avoid Layoffs and Rehire Employees

The federal stimulus includes unprecedented financial incentives for employers to retain employees or bring back employees laid off after March 1, 2020. The main part of this is the U.S. Small Business Administration’s (SBA) Paycheck Protection Program.

The program provides loans of up to $10 million to small businesses that have been affected by the COVID-19 pandemic so they can pay up to eight weeks of payroll costs, including benefits. The funds can also be used to pay interest on mortgages, rent and utilities, with some limitations.

2. Get Access to Credit with Economic Injury Disaster Loans (EIDLs)

The Small Business Administration’s (SBA) disaster loans are the primary form of Federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.

EIDLs can be up to $2 million and include a $10,000 emergency grant to be made within three days of application. These grants do not have to be repaid as long as funds are used for providing paid sick leave to employees unable to work due to the direct effect of the COVID–19; maintaining payroll to retain employees during business disruptions or substantial slowdowns; meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains; making rent or mortgage payments, and repaying obligations that cannot be met due to revenue losses.

3. State & Local Business Support

Gusto, the people platform for payroll, benefits, and more, pulled together this amazing Google Sheet which details all the state-level government support programs for businesses across North America.

4. Private Support Initiatives for US Businesses

Gusto’s Google Sheet also details lots of private support programs for businesses across North America. It includes details of everything from Facebook’s Business Resource Hub to details about free tools like Google G Suite to helpful advice like Mark Cuban’s Q&A for Small Business Owners.

Other non-government USA resources we like include:

TIMIA Capital is Open for Business

While our top priority is to maintain the health of our existing portfolio, we’re still open to new business with great SaaS companies.

Please get in touch or learn more about revenue financing if you’d like to chat about our founder-friendly financing options.

Looking for non-dilutive capital?

TIMIA Capital works with recurring revenue technology
businesses between $2 – $20 million ARR.

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