Payment deferrals on credit facilities is an effective way to reduce the strain on cash flows in the short term, however the interest does continue to accrue which affects both the overall interest paid on the lending and/or the overall repayment term in the long term. We recognize that every situation is unique and since there are other tools available to support our members, we are committed to working with each of them to develop the best plan for their business.
What supports are available for my business?
Since the discovery of COVID-19 in Canada there have been so many significant changes across our country and within our communities. The impacts of social distancing, quarantines, illness and closures has already had a substantial impact on small businesses and how long it will continue remains unknown. We at SCCU are committed to supporting our business members in these challenging times by keeping you updated and informed on the options available.
**CEBA expansion is now available.
Deadline for application is March 31, 2021**
We are pleased to be able to assist our members in accessing the Government’s Canada Emergency Business Account (CEBA). We are accepting applications based on the original eligibility criteria (Payroll Stream) and we are now accepting applications under the expanded eligibility criteria (Non-Deferrable Expenses Stream).
The application is available through our online banking portal (not through the mobile app). To apply for CEBA, review How to Prepare and Eligibility Requirements first, then click on the "Apply Now" button below to complete the online application.
Once you have submitted your application, you will receive an email within 1-2 business days, confirming that your application has been received and is in progress.
Should all the qualification criteria be satisfied, you will receive a request from e-Sign to sign the loan document within 4-6 business days. The funds will be deposited to your account within 1 business day after we receive confirmation of signing.
**Deadline for application is March 31, 2021 for the $60,000 CEBA loan or the $20,000 expansion***
WHAT IS THE CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)?
To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada has launched the new Canada Emergency Business Account, which has been implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).
This $25 billion program provides interest-free loans of up to $60,000 to eligible small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus.This will better position them to quickly return to providing services to their communities and creating employment.
Applicants who have received the $40,000 CEBA loan may apply for the $20,000 expansion, which provides eligible businesses with an additional $20,000 in financing.
Up to $20,000 loan forgiveness provided the outstanding balance is paid on or before December 31, 2022.
NON-DEFERRABLE EXPENSE STREAM ELIGIBLE EXPENSE CATEGORIES ARE THE FOLLOWING:
• Wages and other employment expenses to independent (arm’s length) third parties;
• Rent or lease payments for real estate used for business purposes;
• Rent or lease payments for capital equipment used for business purposes;
• Payments incurred for insurance related costs;
• Payments incurred for property taxes;
• Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
• Payments for regularly scheduled debt service;
• Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower
HOW TO PREPARE
Here is how you can prepare to make the process as smooth as possible:
- Confirm you are able to log into online banking (note: the applicant must both an authorized signer AND have the ability to bind the company)
- Confirm you have the 2019 Statement of Remuneration (T4SUM) for the business
- Confirm you have your 15 digit CRA business number (located on your T4SUM)
- Confirm your payroll expenses meet the requirements noted below (the sum of Box 14 and Box 71)
- For the Non-Deferrable Expense Stream, prepare to upload your documents to CEBA Government site after submitting your application: Bills / invoices / agreements that prove greater than $40,000 CAD in 2020 Eligible Non-Deferrable Expenses. Upload here.
As the CEBA program is guaranteed by the Government of Canada and administered by Export Development Canada, there are specific criteria that need to be met in order to qualify for CEBA.These include:
- Must have an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
- For the expansion: you will need to submit a new application and attestation to the financial institution that provided you with your original CEBA loan.Total payroll expenses in 2019 must be between $20,000 and $1,500,000
- SCCU must be the business’s primary financial institution. If you do not have a business chequing account you must create one before applying for CEBA through SCCU.
- Funds must be used for operating expenses that cannot be deferred such as payroll, rent, utilities, insurance and property tax
Additional detail may be found on the government website here.
Our Offerings for Business Members:
Transitioning to Digital Payments:
We recognize that many of our business members rely on in person service and are not currently set up to accept digital payments to support a remote business model. SCCU works with Payfirma to support the merchant services needs of our business members, and as existing virtual terminal and e-commerce solutions to assist with that transition. While they have also adapted their business model to better support social distancing, Payfirma has expressed a commitment to provide uninterrupted service to ensure they can equip our members with the tools they need. Should you want to discuss the options available please contact the commercial team at email@example.com or call our member service centre at 604.740.2662 and we can start the process.
More information on the services available can be found at www.payfirma.com.
External Options for Business Members:
Government of Canada Economic Response Plan for Businesses: The Government of Canada has made several announcements to support businesses impacted by the Covid-19 pandemic. These include the following:
- The Canada Emergency Wage Subsidy (CEWS) would apply at a rate of 75% of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.
- Deferral of income tax payments that become owing on or after March 18th and before September 2020
- Increase of credit available to small, medium and large Canadian businesses through a new Business Credit Availability Program
- Enhancing the Work-Sharing program to support employers and their workers
- A new Emergency Care Benefit to support self-employed individuals who are quarantined or ill, are caring for family members who are ill, or lack sufficient childcare due to school closures.
*Please refer to the Government of Canada website for the most current information
Additional Links for Business Members:
- Articles and Upcoming Webinars on Managing and Coping with the Impact of COVID-19 on Your Business
- Free webinar from Business Development Bank of Canada (BDC) regarding the challenges to Canadian businesses brought on by COVID-19
- Facebook offer of cash grants and ad credits to businesses
- Small Business BC article on how businesses should manage and pivot during COVID-19:
- Small Business BC Daily Digital Meetup
- Weekly Canadian economic commentary by Peter Hall (Economic Development Bank of Canada’s chief economist)
- BC Chamber of Commerce Business Support and Information
- If a business is looking increase their online presence and set up an ecommerce platform, Shopify is offering a 90-day free trail
- Hootsuite is offering free access to their professional plan to help businesses and non-profits stay connected to their customers and audiences
- BC Business and Covid-19 related articles on coping/managing during Covid-19
- Business In Vancouver Covid-19 related articles on coping/managing during Covid-19
- As a Canadian employer whose business has been affected by COVID-19, you may be eligible for a subsidy of 75% of employee wages for up to 12 weeks, retroactive from March 15, 2020, to June 6, 2020.
- Canada Emergency Commercial Rent Assistance Program: Meant to help small businesses cover 50% of their rents for April, May, and June through forgiveable loans. The businesses eligible for this rent relief are those that have to pay less than $50,000 per month in rent, have had to temporarily cease operations, or have experienced at least a 70 per cent drop in pre-COVID-19 revenues. The program is also being made available to non-profits and charities.
What supports are available for my employees?
Business Credit Availability Program
The Government of Canada has allocated funds to provide additional credit support to businesses via the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Businesses can find some information here, it is recommended that you discuss your situation with your primary financial institution first as the primary purpose of these funds is to support businesses whose needs extend beyond what is available to them.
Standard BDC Small Business Loans
Outside of the new Business Credit Availability Program, BDC offers small business loans of up to $100,000 by way of an online application. These loans offer an interest only feature for the first 6 months with repayment required over a maximum of 60 months thereafter. There are also no application fees.
How can I help my community?
- Call to Action for Canadian Manufacturers - The Government of Canada is looking for manufacturers that can re-tool to produce much needed medical equipment and/or have access to the raw materials needed for production. More information can be found here.
- Should your business require financing to support this process please reach out to SCCU directly.