Entrepreneurship & Small Business

Any Government help for NOT incorporated businesses?

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Deal Fanatic
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Dec 10, 2004
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Any Government help for NOT incorporated businesses?

Seems like a lot of small businesses I know are self employed and were not incorporated and now going out of businesses and there's no help as all current help is for incorporated businesses. Is that still unchanged or some help for small self employed businesses are in the works or already released?
Trying to understand the current situation.
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Deal Fanatic
Aug 21, 2007
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Markham
maybe still eligible for the CEBA...ive read its for incorporated companies, but ive seen sole proprietors with business accounts get it

wage subsidy and rent assistance should also apply

there isnt really anything that doesnt apply to sole proprietors
Deal Fanatic
Jul 26, 2007
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adeel wrote: maybe still eligible for the CEBA...ive read its for incorporated companies, but ive seen sole proprietors with business accounts get it

wage subsidy and rent assistance should also apply

there isnt really anything that doesnt apply to sole proprietors
How can sole proprietor without employees (including self) and without being able to generate t4 get CEBA?
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Aug 21, 2007
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peteryorkuca wrote: How can sole proprietor without employees (including self) and without being able to generate t4 get CEBA?
yes, in that case not eligible...but a corp with no employees would be in the same situation...so its less about the type of business and more about the nature of the business
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adeel wrote: maybe still eligible for the CEBA...ive read its for incorporated companies, but ive seen sole proprietors with business accounts get it

wage subsidy and rent assistance should also apply

there isnt really anything that doesnt apply to sole proprietors
Doesn't seem like correct info
You can't even apply to ceba without meeting the requirements, which are not only to have a business account, but also to have payroll. A bank would not give you money without verification of this. You don't have payroll as self employed. Neither would you have wages.
My guess, rent loan is the only thing so far based on what could see.
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Deal Fanatic
Aug 21, 2007
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dazz wrote: Doesn't seem like correct info
You can't even apply to ceba without meeting the requirements, which are not only to have a business account, but also to have payroll. A bank would not give you money without verification of this. You don't have payroll as self employed. Neither would you have wages.
My guess, rent loan is the only thing so far based on what could see.
A sole prop/ self employed could still have someone other than themselves on payroll...
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Apr 24, 2013
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Maybe they will remove the payroll condition down the road :)
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Jan 1, 2009
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dazz wrote: Seems like a lot of small businesses I know are self employed and were not incorporated and now going out of businesses and there's no help as all current help is for incorporated businesses. Is that still unchanged or some help for small self employed businesses are in the works or already released?
Trying to understand the current situation.
You simply are only eligible for the CERB if you have not received more than $1,000 in self-employment income during the claim period and made at least $5,000 in 2019 or previous 12 months. Otherwise, the CEWS is intended for employees which you do not have any.
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Cypherus21 wrote: You simply are only eligible for the CERB if you have not received more than $1,000 in self-employment income during the claim period and made at least $5,000
Seems grossly unfair. A stay at home mom or 17 year old kid who somehow managed to make 5K in 2019 are getting $2000/month and then struggling sole proprietorship businesses are getting the same, whiling losing clients, losing business and going into debt. Ouch.
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Jan 1, 2009
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dazz wrote: Seems grossly unfair. A stay at home mom or 17 year old kid who somehow managed to make 5K in 2019 are getting $2000/month and then struggling sole proprietorship businesses are getting the same, whiling losing clients, losing business and going into debt. Ouch.
I agree, but you can still access the CERB if you qualify. The Government is not ignoring you. We are fortunate to have government that looks out for people. For any stay at home mom double dipping, don't worry the CRA already knows those people and will recapture and penalize those people. They won't now because it's all about paying out now, recover later with penalties, garnishes, assets put up for auction, etc.. It's all on CRA's website.

Also, what I bold begs the questions - many anecdotes of small business owners still working under the table to get revenue, and qualifying for the CERB - thereby stealing out of the public purse. Nothing stopping anyone until CRA's compliance programs in 2021-2023 starting to cracking down on CERB claimants of 2020 with penalties, repayments, and possible jail time. Canada is a small country with limited resources. The CRA is not stupid. Any federal government including Libs and Cons agree that the public purse needs protection.
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Cypherus21 wrote: I agree, but you can still access the CERB if you qualify. The Government is not ignoring you. We are fortunate to have government that looks out for people. For any stay at home mom double dipping, don't worry the CRA already knows those people and will recapture and penalize those people. They won't now because it's all about paying out now, recover later with penalties, garnishes, assets put up for auction, etc.. It's all on CRA's website.

Also, what I bold begs the questions - many anecdotes of small business owners still working under the table to get revenue, and qualifying for the CERB - thereby stealing out of the public purse. Nothing stopping anyone until CRA's compliance programs in 2021-2023 starting to cracking down on CERB claimants of 2020 with penalties, repayments, and possible jail time. Canada is a small country with limited resources. The CRA is not stupid. Any federal government including Libs and Cons agree that the public purse needs protection.
Well, cerb gives $2000, which is not enough for business owners due to various business expenses, even if you don't have to pay rent. I can tell you for myself( even though i don't qualify as I am incorporated and so far I have been spared somewhat), Aside from typical expenses, I incur about $1500/ - $2500/month of other expenses, even though I work from home. If I was a struggling self employed and qualified for CERB, $2000/m with a deferred mortgage would cover my daily not business expenses. I would have to use my emergency fund to cover those and would run out of all money in about 5 months. Now, if as some, don't qualify for mortgage deferral then they are double screwed as they can burn through the 6 months of emergency fund at a much faster pace due to the attempt to cover unexpected business loses and expenses. Some businesses have crazy large rental expenses aside from RE rent( eg, furniture, machinery,etc).

That's the unfairness of it.Some stay at home mom or 17 year old kid even without double dipping are in the win currently. $2000 for 17 years old kid with no business is easy, while may not be so for businesses and it seems those businesses are being punished because they are not incorporated.
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