Entrepreneurship & Small Business

What to do if my business doesn't qualify for the Canada Emergency Business Account?

  • Last Updated:
  • May 20th, 2020 3:05 pm
[OP]
Newbie
Apr 2, 2020
92 posts
30 upvotes

What to do if my business doesn't qualify for the Canada Emergency Business Account?

So yesterday the details of the Canada Emergency Business Account were released. Unfortunately my business won't qualify as my total payroll for 2019 was too high. Does anyone know what the government is planning to do for small businesses that don't qualify for this account? From what I can see and according to my financial institution there is nothing.
76 replies
Sr. Member
Mar 3, 2009
777 posts
264 upvotes
Ottawa, ON
Just to clarify @Pronoia - your small business had a payroll last year that was greater than $1M?
Deal Addict
User avatar
Sep 19, 2005
3027 posts
2005 upvotes
Canadia
Your business should qualify for the Canada Emergency Wage Subsidy, which pays 75% of the first $58,700 normally earned by employees for 12 weeks, retroactive to March 15. Assuming that payroll is $1M and your employees are earning $58,700 or less, that should pay approximately $173,076 to keep your staff employed.

https://www.canada.ca/en/department-fin ... bsidy.html
[OP]
Newbie
Apr 2, 2020
92 posts
30 upvotes
Yes. Total employment income approximately $1,088,000.
[OP]
Newbie
Apr 2, 2020
92 posts
30 upvotes
I own a therapeutic massage therapy business. Unfortunately, we are not able to operate at all. The wage subsidy will only be helpful once we are allowed to open
Member
Oct 28, 2015
427 posts
96 upvotes
Nobleton, ON
who will qualify and how do you apply? is the loan interest free and you don't have to repay %25 back? my Inc had a loss last year...... Do you need to provide info regarding revenue decline? How would you do that judging my Inc does computer consulting....
Deal Addict
Jan 7, 2014
2434 posts
470 upvotes
Winnipeg
How is wage subsidy program different than Canada Emergency business account?
Are they independent or linked? Can a business just take the Emergency business account and not wage subsidy?
Member
Oct 28, 2015
427 posts
96 upvotes
Nobleton, ON
My payroll last tax year was around $70k (paid to myself and my relatives), and it was registered a loss.

This tax year I haven't paid any wage, most went through as Inc cost, will I still qualify for this loan? How does one apply? my gross revenue is around $300k per year, I have another Inc that had a profit last year, but not a lot, neither did it pay any payrolls....

Do you have to show CRA that your cost so far this year overwhelms your revenues to account for the need of a loan? do you need to show them all the cost? (invoices)?
[OP]
Newbie
Apr 2, 2020
92 posts
30 upvotes
Asker123 wrote: How is wage subsidy program different than Canada Emergency business account?
Are they independent or linked? Can a business just take the Emergency business account and not wage subsidy?
The CEBA is a line of credit of up to $40,000. Totally independent from the wage subsidy program.
[OP]
Newbie
Apr 2, 2020
92 posts
30 upvotes
xuanzh wrote: My payroll last tax year was around $70k (paid to myself and my relatives), and it was registered a loss.

This tax year I haven't paid any wage, most went through as Inc cost, will I still qualify for this loan? How does one apply? my gross revenue is around $300k per year, I have another Inc that had a profit last year, but not a lot, neither did it pay any payrolls....

Do you have to show CRA that your cost so far this year overwhelms your revenues to account for the need of a loan? do you need to show them all the cost? (invoices)?
To qualify they solely look at your 2019 total payroll. CRA looks at what you have submitted on line 14.

This makes NO sense to me!
Member
Oct 28, 2015
427 posts
96 upvotes
Nobleton, ON
Pronoia wrote: The CEBA is a line of credit of up to $40,000. Totally independent from the wage subsidy program.
For CEBA, it seems that you can ONLY apply through CIBC business ? am I reading it right? I have my business account with TD though....
Member
Oct 28, 2015
427 posts
96 upvotes
Nobleton, ON
Pronoia wrote: To qualify they solely look at your 2019 total payroll. CRA looks at what you have submitted on line 14.

This makes NO sense to me!
my total 2019 payroll is only $20k, will it qualify for the wage loan? thanks
Sr. Member
Oct 3, 2013
963 posts
1194 upvotes
Pronoia wrote: I own a therapeutic massage therapy business. Unfortunately, we are not able to operate at all. The wage subsidy will only be helpful once we are allowed to open
Do you staff people as employees? Or as independent contractors? If the latter, they may individually be able to qualify for the wage subsidy themselves, FYI.
xuanzh wrote: my total 2019 payroll is only $20k, will it qualify for the wage loan? thanks
No - you need a payroll of at least $50000 to qualify for CEBA.
xuanzh wrote: For CEBA, it seems that you can ONLY apply through CIBC business ? am I reading it right? I have my business account with TD though....
No, you may apply through any of the banks participating. TD will be one of them. https://www.td.com/ca/en/personal-banki ... ss-relief/

You have a lot of questions that are easily answered with a bit of research and/or patience. April 6th is 2 days away - full details will be available thorough all/most of the banks then. By what you've said in this thread, you should qualify. They have not indicated you need to display any need at this time.
Member
Oct 28, 2015
427 posts
96 upvotes
Nobleton, ON
Phonophoresis wrote: Do you staff people as employees? Or as independent contractors? If the latter, they may individually be able to qualify for the wage subsidy themselves, FYI.



No - you need a payroll of at least $50000 to qualify for CEBA.




No, you may apply through any of the banks participating. TD will be one of them. https://www.td.com/ca/en/personal-banki ... ss-relief/
damn, really? for $50k?! my 2018 payroll was around $65k....

Can I still qualify for that wage subsidy then?
Deal Addict
Jan 7, 2014
2434 posts
470 upvotes
Winnipeg
some banks like TD on their webpage are saying up to 40000 but others like RBC saying 40000 revolving line of credit.
will the loan be based on box 14 on T4?
for qualifying, will there be manual check or online just matching whether box 14 is between 50k am 1M?

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