The impact of COVID-19 is already being felt by business owners across Northwestern Ontario. This unprecedented event has left entrepreneurs feeling uneasy, anxious and overwhelmed as to how to move forward. Understanding that this a challenging time for business owners, we’ve compiled a practical guide to help navigate these uncharted waters.
Staying Healthy and Calm
In these difficult times it can be easy to let your mental, emotional and physical care fall by the wayside and become secondary to the requirements of your business and ever-changing news updates. In these times, it is paramount to manage yourself first, ensuring that you are making time for the activities that keep you healthy and of sound mind. It can be as simple as taking a mid-day walk, eating balanced meals or disconnecting from media for a period. Making your self-care a priority during these times is crucial as it provides a better mindset, which supports a calmer environment for your staff and better decision making for your business.
The Government of Canada has put together several initiatives to support small businesses during these challenging times. Finding out the availability and eligibility requirements of the various supports is vital in managing the cash-flow of your business. The Government has rolled out the Business Credit Availability Program (BCAP) to help businesses obtain financing in all sectors and regions. For additional information on any of the BCAP programs click here.
Below are some details on the most requested support through the Canada Emergency Business Account (CEBA) program. This loan will assist businesses by providing an interest free credit facility that will pay for operating expenses through these challenging times.
The Canada Emergency Business Account (CEBA)
- CEBA provides much needed credit for small businesses to pay for immediate operating costs such as payroll, rent, utilities, insurance, property tax, or debt service. It is 100 per cent funded by the Government of Canada.
- It is available to Canadian employers with $20,000 to $1.5 million in total payroll in 2019, and operating as of March 1, 2020. This includes smaller (i.e., micro) businesses and other eligible employers such as not-for-profits.
- Under CEBA, financial institutions will be able to provide interest-free credit facilities of up to $40,000 to eligible businesses.
- If the loan is repaid by December 31, 2022, 25 per cent (up to $10,000) will be forgiven.
- 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.
As always, we recommend contacting your Business Relationship Manager for more detailed and specific advice for your business.