Canadian Emergency Business Account

[rknight111]

Nothing is Free, the money is a taxable benifet. I have a payroll account with a yearly balance over 170 K+ per year, I pay small office fees and that's it so I wont take advantage, by bank did show me this, CRA documents says "A $40,000 interest-free(until December 31, 2022), government guaranteed loan to help you pay for operating costs that you’re not able to defer as a result of COVID-19." I underlined it for all to see, so many will take advantage of this, sure but it all comes at a cost. This would be for like a storefront business that is closed and you have rent to pay and uitities to keep your business. ​

 

[Chump]

Most businesses won't be able to pay back the 30g before then term is up. Bank is banking on making 5% interest on remainder that probly 50% + of small businesses won't be able to pay back.. Really guarantees revenue for the banks. Most people are not able to budget worth **** and will just end up in more debt. I applied, will use this wisely and get a free 10g less tax!

 

[Cyle]

Most businesses won't be able to pay back the 30g before then term is up. Bank is banking on making 5% interest on remainder that probly 50% + of small businesses won't be able to pay back.. Really guarantees revenue for the banks. Most people are not able to budget worth **** and will just end up in more debt. I applied, will use this wisely and get a free 10g less tax!

They have 2 years 8 months to pay it back. If you can't pay back $30k in that time frame you don't belong in business in the first place. 5% interest is good, I doubt anyone is getting a loan at less then 5% unless it's secured.

 

[rknight111]

Through it in the stock market, make a pile, pay it back, I wish, thats not happing.

 

[Cyle]

Nothing is Free, the money is a taxable benifet. I have a payroll account with a yearly balance over 170 K+ per year, I pay small office fees and that's it so I wont take advantage, by bank did show me this, CRA documents says "A $40,000 interest-free(until December 31, 2022), government guaranteed loan to help you pay for operating costs that you’re not able to defer as a result of COVID-19." I underlined it for all to see, so many will take advantage of this, sure but it all comes at a cost. This would be for like a storefront business that is closed and you have rent to pay and uitities to keep your business. ​

JMO everyone else is taking it whether they need it or not, you might as well. The way I see it the free money will go to pay the tax increases coming from all these handouts.

 

[Dawizman]

Just snuck in under a million on payroll last year. Got our $40K in the bank today. Interest free loan was a no brainer. I would've taken it without the free $10k.

 

[Cyle]

Just snuck in under a million on payroll last year. Got our $40K in the bank today. Interest free loan was a no brainer. I would've taken it without the free $10k.

Wow that's quick, I know CIBC just opened up applications this morning, was another bank sooner?

 

[freeflorider]

Something fishy here, I’m going to be the rat NOT sticking his head into the cheese tray.
going to wait and see, no time line is there to apply. Don’t want them snooping into my accounts to see if I need it or not, likely raise a red flag for an audit.

 

[snopro]

I was going to text this to the accountant..

I sent an email to mine as well Fred. Let me know what you find out and I'll do the same. See who's accountant is the sharpest! HaHa!

 

[S.W.A.T.]

Wow that's quick, I know CIBC just opened up applications this morning, was another bank sooner?

Mine was there before lunch

 

[Cyle]

Something fishy here, I’m going to be the rat NOT sticking his head into the cheese tray.
going to wait and see, no time line is there to apply. Don’t want them snooping into my accounts to see if I need it or not, likely raise a red flag for an audit.

could be a gamble, if many more then expected apply they could end it early. The banks are the ones checking eligibility not the government. Checking bank account history won’t tell them if you need it, it’s more if revenue stops coming in.

 

[freeflorider]

If the bank see your sitting on a large cash surplus why would it be offered to you. I really like to know what they consider and makes one eligible.
loggers generally take this time of year off so are they going to pay me to sit home. To good to be true, More to fallow I guess.

 

[Dawizman]

If the bank see your sitting on a large cash surplus why would it be offered to you. I really like to know what they consider and makes one eligible.
loggers generally take this time of year off so are they going to pay me to sit home. To good to be true, More to fallow I guess.

There is nothing saying you can't be sitting on a cash surplus and qualify for this loan. This is a government run program with very basic rules. All you have to do is meet the basic criteria.

They do however simulate that this can't be used for increased management compensation, dividends, or early debt payments.

 

[gunner3006]

There is good money in collecting interest. My opinion, there will be small businesses that will use this properly and there will be ones abuse it. If it’s going into one account there is now way of tracking anything. Especially is your business is still pulling 50-70% of its regular income. My only question is, what happens when the $40k is gone and oil is still cruising along at the same price as a 6 pack of stag chilli?

 

[pfi572]

Don’t mean to be a ass hole ?
But if you need this $40000 in a big way right now ? O&G /Foresty or anything with big expenses . It’s only been 5 weeks and it’s spring time like every year.
You’re in a world of hurt financially ?
If your just taking it because it’s interest free and paying it back when due your fine . IMO

 

[snopro]

The Turd is finally talking about it this morning

 

[Stompin Tom]

Don’t mean to be a ass hole ?
But if you need this $40000 in a big way right now ? O&G /Foresty or anything with big expenses . It’s only been 5 weeks and it’s spring time like every year.
You’re in a world of hurt financially ?
If your just taking it because it’s interest free and paying it back when due your fine . IMO

When your accountant tells you to do it, you do it. When he says its the best program he has ever seen the government offer, you listen. Small business seldom gets a break.

As I said earlier every small business will take it up the *ss when this is over with extra taxation. We always have, we always will. Its about positioning yourself for the future, protecting your family and business.

 

[pfi572]

When your accountant tells you to do it, you do it. When he says its the best program he has ever seen the government offer, you listen. Small business seldom gets a break.

As I said earlier every small business will take it up the *ss when this is over with extra taxation. We always have, we always will. Its about positioning yourself for the future, protecting your family and business.

Agreed for sure . But I have a feeling you would be one of the ones I am not referring to?

 

[Dawizman]

Don’t mean to be a ass hole ?
But if you need this $40000 in a big way right now ? O&G /Foresty or anything with big expenses . It’s only been 5 weeks and it’s spring time like every year.
You’re in a world of hurt financially ?
If your just taking it because it’s interest free and paying it back when due your fine . IMO

We are in the second boat. I will legally take advantage of any government plan to help my business get ahead. Why not? All the big corporations get handouts, why shouldn't I?

 

[fredw]

I sent an email to mine as well Fred. Let me know what you find out and I'll do the same. See who's accountant is the sharpest! HaHa!

Mine got back time last night..


"One of the criteria is that you need $50,000 in employment income in the previous year which unfortunately the farm did not have ..!

They require a T4, you are paid through a dividend which they have not included .."

To many years of wrecks on the farm prior I guess, lost guys to the patch paying twice the salary.. and my wages now to fam don't cut it