Canadian Emergency Business Account

[Stompin Tom]

Written in black and white, and in the terms of the loan

https://www.cibc.com/en/business/covid-19/emergency-business-account-faq.html

 

[Stompin Tom]

Once they give out the loan it will be very hard to try and change the terms. If anything I think restrictions will ease, or another program setup for all the small businesses who can't qualify for this one. How many people are getting the $8k free money?

The 2000 per month giveaway is a taxable benenfit, so its not entirely free, and I suspect the 10000 freebee on the business load will also be a taxable benefit, but that is a small price to pay.

 

[Stompin Tom]

Would this still work with one truck?

biggest criteria is having a payroll account and a minimum of 50,000 in payroll in 2019

 

[Cyle]

The 2000 per month giveaway is a taxable benenfit, so its not entirely free, and I suspect the 10000 freebee on the business load will also be a taxable benefit, but that is a small price to pay.

Oh yea for sure it will be taxable. But technically if the small business is still claiming a loss they won't pay any taxes on it.

 

[Stompin Tom]

the main thing that made this a no brainer for me is I firmly believe we will get hit hard with new tax's and increases after this is over, so a guy might as well protect himself as best as he can now to be in a better position to handle the tax increases. There is no doubt in my mind that as a small businessman I will pay far more than my fair share back after this is over.

 

[Cyle]

the main thing that made this a no brainer for me is I firmly believe we will get hit hard with new tax's and increases after this is over, so a guy might as well protect himself as best as he can now to be in a better position to handle the tax increases. There is no doubt in my mind that as a small businessman I will pay far more than my fair share back after this is over.

Agreed. It would be stupid not to take it.

 

[Stg2Suby]

Be interested to see this free 10000 ? Lol
I say bull . If you have money in your account or accounts that $10000 is going to be handed back at the term end .

Thing is CRA would have to audit your company to make a call on whether or not you needed it at the time. They don't have resources to audit everyone, so from a business perspective it's worth taking a chance on it.

 

[Couch]

Filed this morning - bank rep said that they were advising everyone to avail ...not disclosed but would think that the banks are also getting an admin fee for each one processed...

Click link. Enter bus#. Enter payroll from T4 summary for 2019. Confirm email. Hit I have read/ agree. Funds should be available in 5 days. Bobs your uncle. If only all other financing had been so easy.

Misuse would have to be pretty blatant. - most likely would be attempts to apply multiple times. Remitted upwards of $350,000 to govt in 2019, and close to same in 2018 and 2017 so 10k back is a minuscule commission .....

 

[Stompin Tom]

Thing is CRA would have to audit your company to make a call on whether or not you needed it at the time. They don't have resources to audit everyone, so from a business perspective it's worth taking a chance on it.

According to accountant there is no criteria with regards to needing it at this time. The wording "designing them specifically to help small- and medium-sized employers with their most pressing needs and position our economy to recover." is read to put you in the best position to help the economy recover. It basically means to protect yourself, to position yourself to come through this as a viable business.

 

[Stompin Tom]

Filed this morning - bank rep said that they were advising everyone to avail ...not disclosed but would think that the banks are also getting an admin fee for each one processed...

I would agree, there has to be a relevant fee going to the Banks in this transaction. The banks do all the administration, their money, the do the paperwork. As a zero interest loan they have to be getting something from the government to make it viable for them.

 

[S.W.A.T.]

I would agree, there has to be a relevant fee going to the Banks in this transaction. The banks do all the administration, their money, the do the paperwork. As a zero interest loan they have to be getting something from the government to make it viable for them.

Nope, not at scotiabank anyway. Said right there in big bold letters no fees applied.

Money was in the account before lunch.

 

[Stompin Tom]

Nope, not at scotiabank anyway. Said right there in big bold letters no fees applied.

Money was in the account before lunch.

I think you misunderstood, we were implying that the banks must be getting an addmin fee from the government, not the business. There has to be a reason whey the bank would administer this.

 

[fredw]

I wonder if farmers can take advantage of it. I don't necessarilly need it but could a person use it to pay for fert and chemical inputs? Pay it off and collect a free $10G at the end?

I was going to text this to the accountant..

 

[S.W.A.T.]

I think you misunderstood, we were implying that the banks must be getting an addmin fee from the government, not the business. There has to be a reason whey the bank would administer this.

I'm thinking it was the fastest route to set up with banks. Couldn't believe how quick it was. Less time than it takes to get a cellphone activated. Maybe there is a loophole down the road that the turd is going to pull on us, but for now people should be going after every free dollar they can in my opinion.

 

[pfi572]

I like to think a lot smart People on this .
But if any of you think that this is free money like some are saying ?!!!
Good luck with that ? I say no way .
Just going to let people keep the $10000 ? Not happening unless you’re ?
Native
Immigrant
Or some other special person . Lol

 

[Couch]

Depends on how you describe it - only available to companies with payroll so its in govts interest to keep as many viable as possible ... Alternative is to say FU and let them fold and then go on EI and default on taxes / hst / payroll putting govt further behind ....
If your lucky and hang in there you will be back paying taxes before you know it so govt gets the 10k back ....

 

[Stompin Tom]

I like to think a lot smart People on this .
But if any of you think that this is free money like some are saying ?!!!
Good luck with that ? I say no way .
Just going to let people keep the $10000 ? Not happening unless you’re ?
Native
Immigrant
Or some other special person . Lol

I think you might want to actually read up on this. Contract signed. Written in ink. If $30,000 of the $40,000 paid back by December 31 2022, the remaining $10,000 is forgiven. That isnt fine print, its right up front. If not paid back by Dec 31 2022, all remaining balance rolled over into a 24 month term at 5% interest. I have posted the link from CIBC explaining it, you might want to take the time to read it.

I doubt the $10,000 is "free", I believe it will be considered a taxable benefit and get rolled over into your business's income.

 

[S.W.A.T.]

I think you might want to actually read up on this. Contract signed. Written in ink. If $30,000 of the $40,000 paid back by December 31 2022, the remaining $10,000 is forgiven. That isnt fine print, its right up front. If not paid back by Dec 31 2022, all remaining balance rolled over into a 24 month term at 5% interest. I have posted the link from CIBC explaining it, you might want to take the time to read it.

I doubt the $10,000 is "free", I believe it will be considered a taxable benefit and get rolled over into your business's income.

Exact same wording from RBC and Scotiabank.
I'm in the same line of thinking that the 10k will get rolled in and considered income. If that's the case it should be gst exempt. I'm thinking that the folks that didn't have such a good winter and are facing a long breakup might really need it. Definitely looks like a good investment for small business

 

[gunner3006]

Exact same wording from RBC and Scotiabank.
I'm in the same line of thinking that the 10k will get rolled in and considered income. If that's the case it should be gst exempt. I'm thinking that the folks that didn't have such a good winter and are facing a long breakup might really need it. Definitely looks like a good investment for small business

So outlaw or coyote ?

 

[S.W.A.T.]

So outlaw or coyote ?

I went with doepker, so no new boat this year