Canadian Emergency Business Account

[Stompin Tom]

This benefit is now live. If you run a small business and have a payroll from between $50,000 and $1,000,000 you can now apply.

As per my accountant he is recommending every small business who fits the criteria should apply, its a very good assistance program, virtually no downside. You can get up to $40,000 loan with no interest till Dec 31 2021, and if you pay back $30,000 of the $40,000 the remaining $10,000 is forgiven at no cost to you. If you cant pay back the $30,000 by Dec 31 2021 it turns into a $40,000 loan with a 5% interest rate from that point.

You apply online at the bank where you have your business account and only takes a few minutes.

 

[d8grandpa]

I have received this same notice from bank, but the repayment for interest free and 10g is Dec. 31, 2022. Not 2021.

 

[S.W.A.T.]

This benefit is now live. If you run a small business and have a payroll from between $50,000 and $1,000,000 you can now apply.

As per my accountant he is recommending every small business who fits the criteria should apply, its a very good assistance program, virtually no downside. You can get up to $40,000 loan with no interest till Dec 31 2021, and if you pay back $30,000 of the $40,000 the remaining $10,000 is forgiven at no cost to you. If you cant pay back the $30,000 by Dec 31 2021 it turns into a $40,000 loan with a 5% interest rate from that point.

You apply online at the bank where you have your business account and only takes a few minutes.

Small business would be pretty stupid not to jump on this right now. Even if you dont "need it" , you might down the road depending how things go. Pay it back once things turn around and bank a free 10k. Probably going to have to pay income tax on that 10 grand but oh well. This is the single largest investment that the government has made toward us common blue collar guys.

 

[Stg2Suby]

What about down the road if your business gets audited can they come back on you arguing you didn't really "need it"? Guess I'll have to apply and see how the questions are worded. Also what about impact on your business credit rating, wonder if that would be a possible downside.

edit: just saw this comment from accounting firm, "The loan must not be used to refinance other debt but used for non-avoidable expenses only. There is no details about how this will be proven or enforced at this time".

 

[Stompin Tom]

What about down the road if your business gets audited can they come back on you arguing you didn't really "need it"? Guess I'll have to apply and see how the questions are worded. Also what about impact on your business credit rating, wonder if that would be a possible downside.

edit: just saw this comment from accounting firm, "The loan must not be used to refinance other debt but used for non-avoidable expenses only. There is no details about how this will be proven or enforced at this time".

apply for the loan, use the 40,000 to pay "non-avoidable" expenses, keep the principal in a different account, if you still have $30,000 in dec 2022, return that and you get the first $10,000 free.

Non avoidable expenses? rent, company vehicle payments, payroll, fuel, power bill, heating, insurances, the list goes on and on. Keep you revenue as backup. We dont know how long this will affect us, better to be proactive.

 

[Stompin Tom]

I have received this same notice from bank, but the repayment for interest free and 10g is Dec. 31, 2022. Not 2021.

that is correct, I was typing from memory.

 

[Stompin Tom]

From the TD website:

"The funds from the loan are to be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation."

In other words, you can make your company truck payment, but you can not pay off your company truck.

 

[X-it]

How many Trucks do you have?

 

[snopro]

I wonder if farmers can take advantage of it. I don't necessarilly need it but could a person use it to pay for fert and chemical inputs? Pay it off and collect a free $10G at the end?

 

[Stompin Tom]

How many Trucks do you have?

Four.

 

[Stompin Tom]

I wonder if farmers can take advantage of it. I don't necessarilly need it but could a person use it to pay for fert and chemical inputs? Pay it off and collect a free $10G at the end?

If you have a CRA tax number, business account, and a payroll between 50,000 and 1,000,000 you should be eligible.

 

[Stg2Suby]

I wonder if farmers can take advantage of it. I don't necessarilly need it but could a person use it to pay for fert and chemical inputs? Pay it off and collect a free $10G at the end?

Herein lies the moral dilemma haha. One has to assume your competitors are going to be taking advantage of it, so it's probably a prudent business decision to go for it.

 

[pfi572]

I wonder if farmers can take advantage of it. I don't necessarilly need it but could a person use it to pay for fert and chemical inputs? Pay it off and collect a free $10G at the end?

Another mail box for the cheque’s ?

 

[Stompin Tom]

Herein lies the moral dilemma haha. One has to assume your competitors are going to be taking advantage of it, so it's probably a prudent business decision to go for it.

My accountant says he is advising every client eligible to apply for it. Worst case scenario it is a $40,000 interest free loan for 2 years.

 

[X-it]

Would this still work with one truck?

 

[S.W.A.T.]

Would this still work with one truck?

Has nothing to do with how many trucks or tools or employees. As stated above, as long as your payroll was between 50k and 1 million for 2019 and your not using the money for a new boat or to payoff loans or lines of credit your good to go. Took less than 10min. The money can be used to make the payments, just not to pay things of completely.

 

[snopro]

My accountant says he is advising every client eligible to apply for it. Worst case scenario it is a $40,000 interest free loan for 2 years.

They hadme at interest free loan. $10G free forgiveness is a no brainer now

 

[pfi572]

Be interested to see this free 10000 ? Lol
I say bull . If you have money in your account or accounts that $10000 is going to be handed back at the term end .

 

[Cyle]

Be interested to see this free 10000 ? Lol
I say bull . If you have money in your account or accounts that $10000 is going to be handed back at the term end .

Once they give out the loan it will be very hard to try and change the terms. If anything I think restrictions will ease, or another program setup for all the small businesses who can't qualify for this one. How many people are getting the $8k free money?

 

[Bnorth]

Be interested to see this free 10000 ? Lol
I say bull . If you have money in your account or accounts that $10000 is going to be handed back at the term end .

Still free money for 2 years. Dow Jones is going to go up by 30% in that time so turn the interest free $10k into a free $3k.