Weekly Update – 27 May 2020
Welcome back to our Weekly Update. We hope you and your family are doing well. Read on for this week’s update.
Expansion of CEBA emergency business loans
Last week the Prime Minister announced the expansion of the Canada Emergency Business Account (CEBA). The PM said “if you are the sole owner-operator a business, if your business relies on contractors, or if you have a family-owned business and you pay employees through dividends, you will now qualify.”
This is good news for those businesses and we’ll update you as more details are announced.
Extension to wage subsidy
Last week the government also announced an extension to the CEWS wage subsidy scheme, 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. There are more details here, but please chat to us if you have a question.
If you’re not having cashflow problems right now, that’s great, you’re one of the lucky ones. Plenty of businesses across the country are struggling with cashflow right now. There are a few ways to relieve the cashflow pressure from finance through to restructuring options. Don’t stick your head in the sand – we can help.
Here are some options that might be suitable for your business:
- Borrow money – Businesses can access finance up to $40,000 with Canada Emergency Business Account (CEBA). This may be an option for your business, but please chat to us if you’d like some guidance.
- Restructure expenses and commitments – You can implement various measures to restructure your expenses and financial commitments. There are a range of programs – including Emergency Commercial Rental Assistance – aimed at providing temporary relief to those affected by COVID-19. We can help you work out your existing debt with your banks and creditors to improve your cashflow, so please get in touch.
- Sell more – Consider new sales possibilities, expand your market, refine your marketing strategy– it may be difficult to increase your sales right now, but we’re sure you’re doing all you can. We 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 cashflow schemes to help businesses impacted by COVID-19. We’ll keep you updated if anything changes, but please feel free to get in touch to discuss what these schemes mean for your business.
Want to chat?
Get in touch with us if you have any questions or want to chat about your business.