Weekly Digest – 3 June 2020
Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.
Expansion of Emergency Business Loans
The Government of Canada announced the expansion in eligibility criteria for the Canada Emergency Business Account (CEBA) to include “many owner-operated small businesses”. With this new criteria, businesses with payrolls of less than $20,000 are now eligible to apply.
While this is good news for those businesses, additional details and the date for applications are expected to be released shortly. Get in touch with us to stay updated and let us help you assess if you meet the requirements for these loans.
Extension to Wage Subsidy
On May 15, the Government also announced an extension to the Canada Emergency Wage Subsidy (CEWS) for an additional 12 weeks, taking it to August 29. There have also been changes made to extend the eligibility of the program to include organizations, such as partnerships and educational and training institutions.
This is great news for eligible employers as this 75% subsidy on employee wages will enable you to re-hire workers previously laid off due to COVID-19, and help you better position your business to get back up to speed following the crisis. More information can be found here, but feel free to chat with us for any clarifications or questions you may have.
Surviving Cash Flow Problems
Are you struggling with cash flow right now? You are not alone. The COVID-19 crisis has had a huge impact on businesses across the country, but we’ve got a couple of tricks up our sleeves to relieve cash flow pressure. Don’t stick your head in the sand – we can help.
Here are some options that might be suitable for your business:
- Borrow money – Small businesses and not-for-profits can access interest-free loans of up to $40,000 with the Canada Emergency Business Account (CEBA) program. This financial support can help you cover your operating costs in these trying times when revenues are reduced due to COVID-19. Additionally, under the Business Credit Availability Program, Export Development Canada is working with financial institutions to guarantee 80% of new operating credit and cash flow term loans of up to $6.25 million for small- and medium-sized businesses. If you need some guidance on your loan applications, feel free to message us.
- Restructure expenses and commitments – There are different ways to restructure your expenses and financial obligations. While there are programs aimed at providing temporary relief to small businesses affected by COVID-19, such as the Canada Emergency Commercial Rental Assistance (CECRA), wherein 50% of your rent will be covered, we can also help you work out your existing debt with your banks and creditors. Get in touch and let us help you ease your financial burden due to COVID-19.
- Sell more – Improving your sales may be hard right now, but we are sure that you’re doing all you can. Amp up your sales strategy, find new ways to engage customers, identify untapped opportunities, review your pricing — our team’s business advisors can help you get your plan together for the next few months of business.
Over the last few weeks we’ve brought you updates on various government initiatives and cash flow schemes aimed at helping employers keep their businesses afloat amid the COVID-19 situation. We’ll keep you updated on new financial support available and if anything changes on existing ones, but please feel free to get in touch to discuss what these schemes mean for your business.
Contact us if you have any questions or want to discuss your next steps for your business.