I’m strapped for cash for my business (Business Funding)

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#19 Diya SelvaThousands of Canadian businesses are on the verge of shutting doors or cutting back on operations as the COVID-19 pandemic causes

It’s a tough time for many, but the Canadian government has stepped in with new, previously-unseen levels of aid for businesses in distress because of the pandemic.

Closures, reduced hours, layoffs are happening left, right and centre while the crisis continues to evolve, as businesses we are doing the best we can to navigate the unknown. But the situation is already proving devastating for many. 30% of small business owners interviewed by Canadian Federation of Independent Business say that they can survive less than a month in the current situation. #tweetdisel Share on X

Fortunately, the federal government has been introducing a rapidly expanding array of measures* designed to provide relief to small businesses and individuals.

Check out this page by the Government of Canada that has offered Support for Businesses

Canada Emergency Wage Subsidy (CEWS) (Avoiding layoffs and rehiring employees)

  • The subsidy covers 75% of an employee’s wages – up to $847 per week – for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May.
  • Employers eligible for the CEWS are entitled to receive a 100% refund for certain employer contributions to Employment Insurance, the Canada Pension Plan

Temporary 10% Wage Subsidy

  • The Temporary 10% Wage Subsidy is a three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).

Extending the Work-Sharing program

  • Extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19

Changes to Canada Summer Jobs program

  • Receive up to 100 per cent of the provincial or territorial minimum hourly wage for each employee;
  • Extend the end date for employment to February 28, 2021;
  • Hire staff on a part-time basis

Access to Credit

            Canada Emergency Business Account (CEBA) via Financial Institutions

  • Interest-free loans of up to $40,000 to small businesses, if you had paid more than $20,000 in total payroll in 2019
  • Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
  • If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5 per cent interest.

Loan Guarantee for Small and Medium Enterprises via BDC / EDC

  • Canadian businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply.
  • Loans of up to $312,500 to businesses with revenues of less than $1 million
  • Loans would be interest-only for the first 12 months, with a 10-year repayment period.

Hope this helps and gives you something to cope with for the time being. I initially I meant to write about options in general before Covid19 hit us. So, I am working on another article that is currently half baked, on ways to access cash for your business outside of this Covid19 period. I’ll perhaps post it mid May. Stay tuned.

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