Canadian Emergency Business Account

[Stompin Tom]

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"

Protect your business. Who knows how long this will be available?

 

[Ron H]

Here is what I see happening,,,, You take the 40k, pay back 30k, pay taxes on the remaining 10k,,, All good? No, there will be accountability which can ONLY happen through an “audit”... So all has gone through its paces and you’ve payed back the 30k plus the 4K+- in taxes.
Enter govt... you have gone through audit, have missed a “technicality” now you have to pay Bach the 10k,,, +a “penalty”,,, +interest,,, +the taxes you’ve paid on the 10k and that doesn’t even include whatever else they stumble across during the audit...
Just be careful guys and gals...

 

[S.W.A.T.]

Here is what I see happening,,,, You take the 40k, pay back 30k, pay taxes on the remaining 10k,,, All good? No, there will be accountability which can ONLY happen through an “audit”... So all has gone through its paces and you’ve payed back the 30k plus the 4K+- in taxes.
Enter govt... you have gone through audit, have missed a “technicality” now you have to pay Bach the 10k,,, +a “penalty”,,, +interest,,, +the taxes you’ve paid on the 10k and that doesn’t even include whatever else they stumble across during the audit...
Just be careful guys and gals...

Are you a small business owner Ron?

 

[Stompin Tom]

Here is what I see happening,,,, You take the 40k, pay back 30k, pay taxes on the remaining 10k,,, All good? No, there will be accountability which can ONLY happen through an “audit”... So all has gone through its paces and you’ve payed back the 30k plus the 4K+- in taxes.
Enter govt... you have gone through audit, have missed a “technicality” now you have to pay Bach the 10k,,, +a “penalty”,,, +interest,,, +the taxes you’ve paid on the 10k and that doesn’t even include whatever else they stumble across during the audit...
Just be careful guys and gals...

I trust my accountant. He has always been there to help and protect me. I do not fear an audit.

 

[Stompin Tom]

Here is what I see happening,,,, You take the 40k, pay back 30k, pay taxes on the remaining 10k,,, All good? No, there will be accountability which can ONLY happen through an “audit”... So all has gone through its paces and you’ve payed back the 30k plus the 4K+- in taxes.
Enter govt... you have gone through audit, have missed a “technicality” now you have to pay Bach the 10k,,, +a “penalty”,,, +interest,,, +the taxes you’ve paid on the 10k and that doesn’t even include whatever else they stumble across during the audit...
Just be careful guys and gals...

Worst case scenario, you have to pay back the 10 grand plus interest and possible penalty, if so you do not loose the taxes you paid on the $10,000. If deemed that you have to pay back that sum, the tax's you paid on it are also reversed because it is no longer an income. No matter what, you have the $40,000 interest free for almost 3 full years. As for a "technicality" on the $10,000 the loan wording and eligibility is pretty cut and dry.

https://www.td.com/ca/en/business-banking/documents/pdf/CEBABBLoanAgreement.pdf

for your viewing pleasure.

 

[Ron H]

Are you a small business owner Ron?

Yes...

 

[Ron H]

Worst case scenario, you have to pay back the 10 grand plus interest and possible penalty, if so you do not loose the taxes you paid on the $10,000. If deemed that you have to pay back that sum, the tax's you paid on it are also reversed because it is no longer an income. No matter what, you have the $40,000 interest free for almost 3 full years. As for a "technicality" on the $10,000 the loan wording and eligibility is pretty cut and dry.

https://www.td.com/ca/en/business-banking/documents/pdf/CEBABBLoanAgreement.pdf

for your viewing pleasure.

I do Get it, if it's absolutely necessary grab it,,,,, It's the ensuing audit I'd be concerned with...
First thought ok was grab the loot, set up the appropriate monthly payment and done....
Then my next thought ,,,My last audit was 6 months of "prying" into ALL my bank, credit card accts.... And untold questions on bigger personal purchases I've paid for...
In the end things were even and the only recommendation which I have in writing was to claim kilometres instead of actual vehicle expenses,,,, According to my accountant it's more write off but this too I believe sets one up for failure. A lot I know get "denied" on significant portions of their km's..
Just think at the end of this they're gonna say "let's get the economy rolling" CRA is hireing,,,,

 

[S.W.A.T.]

I do Get it, if it's absolutely necessary grab it,,,,, It's the ensuing audit I'd be concerned with...
First thought ok was grab the loot, set up the appropriate monthly payment and done....
Then my next thought ,,,My last audit was 6 months of "prying" into ALL my bank, credit card accts.... And untold questions on bigger personal purchases I've paid for...
In the end things were even and the only recommendation which I have in writing was to claim kilometres instead of actual vehicle expenses,,,, According to my accountant it's more write off but this too I believe sets one up for failure. A lot I know get "denied" on significant portions of their km's..
Just think at the end of this they're gonna say "let's get the economy rolling" CRA is hireing,,,,

I get audited every two years, if all they want is their 10k back then so be it. My conversation with CRA goes like this.... you have my accountants number? Ok then talk to him, my **** is legit.

Never before has the government done anything like this for small businesses as we watch big corporations get millions if not billions in handouts and subsidies. Take what you can while you can. Is the turd going to want our 10k back? Probably. But a 18 month intrest free loan on a business account is a no brainers, whether you use/need it or not.

 

[Ron H]

I get audited every two years, if all they want is their 10k back then so be it. My conversation with CRA goes like this.... you have my accountants number? Ok then talk to him, my **** is legit.

Never before has the government done anything like this for small businesses as we watch big corporations get millions if not billions in handouts and subsidies. Take what you can while you can. Is the turd going to want our 10k back? Probably. But a 18 month intrest free loan on a business account is a no brainers, whether you use/need it or not.

Given trudeaus "disdain" for small business, not to mention his "vision" for the masses I've a hard time with this.
If I take the loot, then at a later date a "complete stranger" totally unfamiliar with my situation/business will decide whether I actually needed it or not is a position I prefer to not be in.. I'll pass on this one, it is not in my nature to trust the govt...

 

[S.W.A.T.]

Given trudeaus "disdain" for small business, not to mention his "vision" for the masses I've a hard time with this.
If I take the loot, then at a later date a "complete stranger" totally unfamiliar with my situation/business will decide whether I actually needed it or not is a position I prefer to not be in.. I'll pass on this one, it is not in my nature to trust the govt...

Fair enough

 

[Cyle]

Given trudeaus "disdain" for small business, not to mention his "vision" for the masses I've a hard time with this.
If I take the loot, then at a later date a "complete stranger" totally unfamiliar with my situation/business will decide whether I actually needed it or not is a position I prefer to not be in.. I'll pass on this one, it is not in my nature to trust the govt...

There is no requirement for the business to "need" the money to qualify, there are just restrictions on how to use the money. However if your business has a decent amount of money coming in otherwise there will be no way to track where the money is going, provided you aren't paying off a bunch of loans or buying a bunch of new equipment/vehicles. If you're that worried about it put the $40k in a separate account and only pay things that are totally allowed to be paid with it. It would be totally clear cut it was used within guidelines then. And as long as your taxes are in order otherwise absolutely no problems.

I've been audited and I do my own taxes and it wasn't bad at all. The person doing it was useless and made a ton of mistakes. I don't know why people fear being audited so much. If this loans mean I get an extra audit so be it, everything is in line and getting $10k free and $30k loan free for 2.5 years is worth it.

 

[snopro]

OK Snow and Mud experts. I tried a couple times last night to apply for this with no luck. I am a grain farmer, pay out payroll that meets the criteria and my accountant says I should qualify for the program. I logged onto Scotiabank online, found the link and clicked on "apply here." The screen went to a log in format again so I logged in again and immediately a screen pops up telling me I don't qualify and gives me about 10 reasons why I may not have qualified? Anybody else run into this and what did I do wrong? Thanks guys.

 

[Stompin Tom]

OK Snow and Mud experts. I tried a couple times last night to apply for this with no luck. I am a grain farmer, pay out payroll that meets the criteria and my accountant says I should qualify for the program. I logged onto Scotiabank online, found the link and clicked on "apply here." The screen went to a log in format again so I logged in again and immediately a screen pops up telling me I don't qualify and gives me about 10 reasons why I may not have qualified? Anybody else run into this and what did I do wrong? Thanks guys.

I did mine through TD, I logged into my account, there was a link to follow, I think I filled in 3 questions, payroll number, last years payroll, bank account number? and hit send, took them 6 days but the money magically appeared in my account. Took maybe 5 minutes total.

I guess the first question would be is your account at Scotia a business account or personal? It has to be applied for with a business account.

 

[kanedog]

I did mine through TD, I logged into my account, there was a link to follow, I think I filled in 3 questions, payroll number, last years payroll, bank account number? and hit send, took them 6 days but the money magically appeared in my account. Took maybe 5 minutes total.

I guess the first question would be is your account at Scotia a business account or personal? It has to be applied for with a business account.

Lend me 20g’s. I want some shiny clutches!

 

[skegpro]

OK Snow and Mud experts. I tried a couple times last night to apply for this with no luck. I am a grain farmer, pay out payroll that meets the criteria and my accountant says I should qualify for the program. I logged onto Scotiabank online, found the link and clicked on "apply here." The screen went to a log in format again so I logged in again and immediately a screen pops up telling me I don't qualify and gives me about 10 reasons why I may not have qualified? Anybody else run into this and what did I do wrong? Thanks guys.

Probably your address........

 

[Chump]

Not sure if it's an issue anymore. But when I was first trying it said I didn't qualify, even though I should of... did some reading online and found that the chrome browser wasn't working with it. Tried a different browser and worked first shot

 

[snopro]

Probably your address........

As in Alberta lol?

 

[snopro]

I did mine through TD, I logged into my account, there was a link to follow, I think I filled in 3 questions, payroll number, last years payroll, bank account number? and hit send, took them 6 days but the money magically appeared in my account. Took maybe 5 minutes total.

I guess the first question would be is your account at Scotia a business account or personal? It has to be applied for with a business account.

Thanks Tom. Maybe that is what the problem is? I will have to check with my financial advisor at the bank I guess and see what she says. I have business lines of credit but my main bank account that everything is paid out of is for the farm and personal. At least I have some questions that I can ask to shortcut the issue with her when I talk to her

 

[S.W.A.T.]

Thanks Tom. Maybe that is what the problem is? I will have to check with my financial advisor at the bank I guess and see what she says. I have business lines of credit but my main bank account that everything is paid out of is for the farm and personal. At least I have some questions that I can ask to shortcut the issue with her when I talk to her

That might be the issue. Although in the rules I think you must have had a business account in good standing prior to a certain period. Perhaps they can find a way to make the exception.

 

[sweld]

I also heard that each bank got a certain amount of loans from the government, once there all gone your sol even if you qualify. If it’s true or not I don’t know.