Covid loans, etc

[Esox]

I have heard (but have not found) that there are loans for small businesses/contractors/self-employed available with 0% interest and up to $40,000? Anyone shed some light on any of these things?

[jpohlic]

from what I understand your business must have a payroll between $50K and $1M

my business is less than that so no help there

[kevinhits]

Originally Posted by jpohlic

from what I understand your business must have a payroll between $50K and $1M

my business is less than that so no help there

I didn't hear that part but if paid by the end of 2022, 25% will be forgiven...My payroll is not close to that but will be meeting with ATB tomorrow....

[Trochu]

Originally Posted by jpohlic

from what I understand your business must have a payroll between $50K and $1M

my business is less than that so no help there

Is that a typo, do you mean $500k?

[jpohlic]

no, I think the minimum was only $50,000 payroll

[Trochu]

Originally Posted by jpohlic

no, I think the minimum was only $50,000 payroll

Thanks!

Found it on my fourth link, from CIBC: "annual payroll of between $50,000 and $1 million as evidenced by the organization’s 2019 T4 Summary of Remuneration Paid (T4SUM).".

[jungleboy]

Hmmm wonder how many Liberal shell (shill?) companies will pop up magically to take advantage of all the money being tossed around by Justin.

Sorry for the derail.

[Twisted Canuck]

As noted, a $40k loan, interest free and for first year, and $10k forgiven if $30k repaid by the end of December 2022.

To qualify, must be a registered co. Have payroll for 2019 of $50k-1m. Need to submit T4SUM. Must have had business account at your bank prior to March 1st 2020. And of course a GST#.

I spoke with CIBC this morning (left a callback # last Friday) and they confirmed all that for me. Supposed to be up and running in a couple days, apply online.

The only thing she couldn't answer was if all businesses qualify for that amount, or if it is on a scale according to payroll or ?

I'm happy to get anything, my wife and I qualify for nothing having been self employed for years.

[Trochu]

Originally Posted by jungleboy

Hmmm wonder how many Liberal shell (shill?) companies will pop up magically to take advantage of all the money being tossed around by Justin.

Sorry for the derail.

There are a few possible hurtles to jump through to help prevent this from happening. As per the above referenced CICB, I understand you have to meet 2019 payroll requirements and secondly, needed to be a registered company in Canada as of 1st March. So to start up a company today with the sole intention of trying to take advantage will hopefully be a tough go.

[fishtank]

Originally Posted by Twisted Canuck

As noted, a $40k loan, interest free and for first year, and $10k forgiven if $30k repaid by the end of December 2022.

theres got to be a catch..

[Twisted Canuck]

Originally Posted by fishtank

theres got to be a catch..

Yeah, that's what I thought too.....that's why when I got the first email from CIBC I thought it was a phishing scam (and even started a thread to that effect). When something sounds too good to be true...

After paying taxes for the last 40 yrs, since I started my first job, getting $10 whole thousand dollars forgiven is a rounding error to what I have paid in. But, I'll take it!

[Esox]

Originally Posted by Twisted Canuck

As noted, a $40k loan, interest free and for first year, and $10k forgiven if $30k repaid by the end of December 2022.

To qualify, must be a registered co. Have payroll for 2019 of $50k-1m. Need to submit T4SUM. Must have had business account at your bank prior to March 1st 2020. And of course a GST#.

I spoke with CIBC this morning (left a callback # last Friday) and they confirmed all that for me. Supposed to be up and running in a couple days, apply online.

The only thing she couldn't answer was if all businesses qualify for that amount, or if it is on a scale according to payroll or ?

I'm happy to get anything, my wife and I qualify for nothing having been self employed for years.

If this is the case, a person would be stupid not to try and get it. A free 10k if you can pay back 30k in 1.5 years and if you cant then you just have to pay the full 40k. Seems like a no brainer if there are no catches. Even though I am a contractor, I would qualify as I pay myself a monthly salary instead of just dividends.

[Twisted Canuck]

Originally Posted by Esox

If this is the case, a person would be stupid not to try and get it. A free 10k if you can pay back 30k in 1.5 years and if you cant then you just have to pay the full 40k. Seems like a no brainer if there are no catches. Even though I am a contractor, I would qualify as I pay myself a monthly salary instead of just dividends.

My accountant said I'd be nuts not to do it. Get the loan, pay $30 K back in a week or month, whatever....and the other $10k is a bit of a lifeline. Assuming you don't need the other $30K to operate. If you do, it's still a big help.

[kevinhits]

Oh, $50K a year....No problem there...LOL

I have 5 corporate identities so $200,000 in loans are good just in case...and $50,000 free....

Hold the money like TW said and pay off right away...

Still must be a catch though

[Smoky buck]

I wonder how many people are going to be screwed with all theses loans, delaying payments, and other financial “help” that will add to there debt with less or no money coming in

Kinda scary the potential mess people can get themselves into if they get in over there head during all this.

[Twisted Canuck]

Originally Posted by Smoky buck

I wonder how many people are going to be screwed with all theses loans, delaying payments, and other financial “help” that will add to there debt with less or no money coming in

Kinda scary the potential mess people can get themselves into if they get in over there head during all this.

For sure some will, but they are going under either way. And for some, it's a little cushion in a tough economy. If I get it, I'll probably toss the $30K back within 30 days and call it a win.

[chedder]

Originally Posted by Twisted Canuck

For sure some will, but they are going under either way. And for some, it's a little cushion in a tough economy. If I get it, I'll probably toss the $30K back within 30 days and call it a win.

This is the part that I wonder about. Why would the government give businesses that have no need for the funds access to this and then let then keep 10 grand to boot. Totally the opposite of helping out those in need. As a tax payer and business owner I hope banks have some sort of screening that eliminates this scenario.

[Smoky buck]

Originally Posted by Twisted Canuck

For sure some will, but they are going under either way. And for some, it's a little cushion in a tough economy. If I get it, I'll probably toss the $30K back within 30 days and call it a win.

I agree that majority would sink either way just seems like there is a lot more options to sink yourself into debt and reach bankruptcy. Just been watching things thinking Trudeau is tossing money everywhere just prolonging things and increasing debt

Too much time to think theses days

[daveyn]

Don't forget to include your own salary in the payroll numbers to get you over the $50,000.
As good as this all sounds somebody somewhere is going to have to pay for this eventually, you might as well take advantage cause I guarantee 2 years from now your corporate taxes are going to go up to pay for this.

[Jerry D]

Originally Posted by chedder

This is the part that I wonder about. Why would the government give businesses that have no need for the funds access to this and then let then keep 10 grand to boot. Totally the opposite of helping out those in need. As a tax payer and business owner I hope banks have some sort of screening that eliminates this scenario.

How can they pick and choose what businesses need the money? Some business owners are wishing they were employees right now and could get EI for a year.... some business owners are already bankrupt or have nothing left already.

The reason they put the payroll cap on it at 1 million, is to any large company, 40k is a drop in the bucket. This is really just for the "smaller companies" that could actually really benefit the most.

[Twisted Canuck]

Originally Posted by chedder

This is the part that I wonder about. Why would the government give businesses that have no need for the funds access to this and then let then keep 10 grand to boot. Totally the opposite of helping out those in need. As a tax payer and business owner I hope banks have some sort of screening that eliminates this scenario.

My business has declined by 70% in the last 5 years, since JT and the gang were elected. Trust me, I am going to manage that $10K better then those idiots, and get more out of it.

Originally Posted by Jerry D

How can they pick and choose what businesses need the money? Some business owners are wishing they were employees right now and could get EI for a year.... some business owners are already bankrupt or have nothing left already.

The reason they put the payroll cap on it at 1 million, is to any large company, 40k is a drop in the bucket. This is really just for the "smaller companies" that could actually really benefit the most.

Exactly right. Nobody is getting out of this unscathed. I've worked 2 weeks out of 6 for the last year or so, just keeping up with the bills. To get hammered now, and not qualify for any gov programs because I'm self employed is just crap. That $10K I may get to keep? That's a rounding error for what I've kicked in in the last 40 years. I totally deserve help too.

[mooseknuckle]

Originally Posted by Twisted Canuck

My business has declined by 70% in the last 5 years, since JT and the gang were elected. Trust me, I am going to manage that $10K better then those idiots, and get more out of it.




Exactly right. Nobody is getting out of this unscathed. I've worked 2 weeks out of 6 for the last year or so, just keeping up with the bills. To get hammered now, and not qualify for any gov programs because I'm self employed is just crap. That $10K I may get to keep? That's a rounding error for what I've kicked in in the last 40 years. I totally deserve help too.

Same boat. Well said!!

[Twisted Canuck]

Just got the email. I'm application process opens tomorrow morning. Sounds like it's a one size fits all $40K loan.

Wonder how long it takes to crash the system....

[chedder]

Originally Posted by Twisted Canuck

My business has declined by 70% in the last 5 years, since JT and the gang were elected. Trust me, I am going to manage that $10K better then those idiots, and get more out of it.









Exactly right. Nobody is getting out of this unscathed. I've worked 2 weeks out of 6 for the last year or so, just keeping up with the bills. To get hammered now, and not qualify for any gov programs because I'm self employed is just crap. That $10K I may get to keep? That's a rounding error for what I've kicked in in the last 40 years. I totally deserve help too.

I wasn't insinuating that you didn't need or deserve it. Was more of a general comment about how it would be rolled out and how they might screen for need. I agree this situation is beyond awful. I don't qualify for any of the subsidies due to sole proprietorship as I'm in an industry where I cannot incorporate.

[Twisted Canuck]

Application done, took less than 3 minutes, and that was reading the Terms and Conditions. Basically plug in your GST account number and your payroll for 2019, click *agree* *submit* and you're done. Easy Peasy.

I thought that section N-iv of the terms was good, regarding your business practices:

....it does not promote violence, incite hatred or discriminate on the basis of sex, gender, sexual orientation, race, ethnicity, religion, culture, region, education, age or mental or physical disability.

They had to fit that in somewhere for sure.

I'm surprised I didn't have to do an gender analysis before hand (we're all men here. ok?)....

Well, see how long it takes.

[leeelmer]

Talked to our bank, we cant apply as it is a credit union.
That sucks,

[Twisted Canuck]

Originally Posted by chedder

I wasn't insinuating that you didn't need or deserve it. Was more of a general comment about how it would be rolled out and how they might screen for need. I agree this situation is beyond awful. I don't qualify for any of the subsidies due to sole proprietorship as I'm in an industry where I cannot incorporate.

No harm, no foul. There are going to be checks to keep people from double dipping, and I'm sure they will be keeping an eye on it. As in any government program, there will be abuse.

[Twisted Canuck]

Originally Posted by leeelmer

Talked to our bank, we cant apply as it is a credit union.
That sucks,

Thats not right, to exclude businesses because of where they bank. Just another form of discrimination!

[CBintheNorth]

Originally Posted by fishtank

theres got to be a catch..

I would expect to see the $10k show up as a taxable benefit.
Other than that, if you qualify and need it, you should apply.
Unfortunately we don't qualify.

[Esox]

Originally Posted by Twisted Canuck

Application done, took less than 3 minutes, and that was reading the Terms and Conditions. Basically plug in your GST account number and your payroll for 2019, click *agree* *submit* and you're done. Easy Peasy.

I thought that section N-iv of the terms was good, regarding your business practices:

....it does not promote violence, incite hatred or discriminate on the basis of sex, gender, sexual orientation, race, ethnicity, religion, culture, region, education, age or mental or physical disability.

They had to fit that in somewhere for sure.

I'm surprised I didn't have to do an gender analysis before hand (we're all men here. ok?)....

Well, see how long it takes.

Just did my application to but it took me 5 minutes because I had to find my 2019 T4SUM, Business number and I read over the terms twice lol.