Canadian Emergency Business Account

[Cyle]

Assume you need the $10k but absolutely don't want to carry the debt I wonder what would happen if you paid the $30k back after the first month? As long as you had spent more than $30k for necessities of course.

If the money is burning a hole in your pocket, i'd be happy to accept the $30k interest free until it needs to be paid back

 

[S.W.A.T.]

How long was the wait between application and having the cash in the bank.

Did they send any transaction notice or you just found the cash in the account?

The LOC account was set up within hours of the application and I noticed there was a deposit of a extra amount that matched the loan value in the account on Tuesday and the LOC is still available as well. I'm not touching a penny of either until it becomes absolutely necessary. I already have a business LOC through the bank that was at 7%. If small business guys can take advantage of these rock bottom rates we might come out the other side of this sitting pretty. I imagine inflation is going to skyrocket in the next few years and if a person can lockdown cheap money right now why not?

 

[S.W.A.T.]

If the money is burning a hole in your pocket, i'd be happy to accept the $30k interest free until it needs to be paid back

I will split his with you

 

[freeflorider]

Just not feeling it, going to sit this one out. Now why don’t they just give us the $10k as they must know that’s what most of us are after.

 

[Stompin Tom]

Just not feeling it, going to sit this one out. Now why don’t they just give us the $10k as they must know that’s what most of us are after.

The reason is simple, the 10k is a carrot dangled so you will pay back at least 30k of original loan within the prescribed period. If you go beyond that you pay interest and loose the free 10k. A rather generous carrot.

 

[Dawizman]

Doesn't seem to be a reason not to take the loan. It's a $10K subsidy from the government essentially. Don't spend it if you worry about repayment, just use the 10k to help your business and pay the rest back. Just stuff the 30k in a savings account or something for the next 30 months.

 

[Cyle]

Just not feeling it, going to sit this one out. Now why don’t they just give us the $10k as they must know that’s what most of us are after.

It is a lot better then a free $10k. For me i'm slow right now, so instead of being worried how busy the rest of the year will be and not spending money, I can now comfortably do all repairs/maintenance on everything to get it ready for once this is over knowing I have this extra cushion. In doing so, it's helping keep other businesses have money coming in.

 

[S.W.A.T.]

It is a lot better then a free $10k. For me i'm slow right now, so instead of being worried how busy the rest of the year will be and not spending money, I can now comfortably do all repairs/maintenance on everything to get it ready for once this is over knowing I have this extra cushion. In doing so, it's helping keep other businesses have money coming in.

100% agree.

In the flipside I wonder how many are going to take the cash and buy a new pickup or new SxS or boat and then have to make the payments later on. I'm sure there will be some rotten apples.

 

[Cableguy]

rotten or not very smart

 

[Summitric]

Applied yesterday, and approved today. Money will be in account in next couple days..... It's guaranteed by the govt. We're putting $30k into high interest savings account in different bank

 

[S.W.A.T.]

Applied yesterday, and approved today. Money will be in account in next couple days..... It's guaranteed by the govt. We're putting $30k into high interest savings account in different bank

High intrest savings doesn't exist anymore, let me kn8if you can find anything over 2.5% on your 30k. Average on 100k per annual is 3%

 

[pfi572]

High intrest savings doesn't exist anymore, let me kn8if you can find anything over 2.5% on your 30k. Average on 100k per annual is 3%

Exactly
Since BOC rate has dropped to .25% it’s not happening .

 

[Stompin Tom]

Applied yesterday, and approved today. Money will be in account in next couple days..... It's guaranteed by the govt. We're putting $30k into high interest savings account in different bank

as per my accountant, and noted that his can be overly cautious, he says dont remove the money from your business account. If you take it and stash it you could leave yourself open to scrutiny from the government. He says leave it in the account it was deposited into, open a second business account, many have a 2nd for GST purposes, but pay all your bills out of the main account, put all new deposits and/or income into 2nd account. That way you can show that you used the emergency money for business expenses, your secondary account you can be more liberal with.

 

[Dawizman]

as per my accountant, and noted that his can be overly cautious, he says dont remove the money from your business account. If you take it and stash it you could leave yourself open to scrutiny from the government. He says leave it in the account it was deposited into, open a second business account, many have a 2nd for GST purposes, but pay all your bills out of the main account, put all new deposits and/or income into 2nd account. That way you can show that you used the emergency money for business expenses, your secondary account you can be more liberal with.

I guess that depends on the size of the company. We have over 200k of monthly expenses. That 40k is long gone by all accounts.

 

[lilduke]

What if you borrow the money, spend it all on business expenses and go out of business when all the money is gone.
Then what? Never mind all the scammers. Most of this money is never getting paid back....


Oh well.

 

[S.W.A.T.]

What if you borrow the money, spend it all on business expenses and go out of business when all the money is gone.
Then what? Never mind all the scammers. Most of this money is never getting paid back....


Oh well.

Then the public will be on the hook for the losers just as the normal

 

[lilduke]

Then the public will be on the hook for the losers just as the normal

yes i know.

 

[S.W.A.T.]

as per my accountant, and noted that his can be overly cautious, he says dont remove the money from your business account. If you take it and stash it you could leave yourself open to scrutiny from the government. He says leave it in the account it was deposited into, open a second business account, many have a 2nd for GST purposes, but pay all your bills out of the main account, put all new deposits and/or income into 2nd account. That way you can show that you used the emergency money for business expenses, your secondary account you can be more liberal with.

High interest doesn't exist so yes leave it be unless you can put ot some place that makes over 10%. I had so US investment but are taking a kicking however now is a good time to buy south. When this turns around it will be better than gold,

 

[rsaint]

it sucks 2019 only year never took a wage.

 

[Ron H]

While I'm still a "skeptic" I was just thinking grab the loan, set up a monthly repayment for the duration. Then it's as if nothing happened as well as you've lived within the guidelines of "monthly expenses"