Entrepreneurship & Small Business

Self Employed/Small business Help from government?

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  • Dec 6th, 2020 8:57 pm
[OP]
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Dec 10, 2004
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Vancouver

Self Employed/Small business Help from government?

A friend of mine had a hair styling business and just posted on FB about closing down, probably for good. Had to fully shut down a few months ago due to inability to pay $3K/m rent, getting in debt for paying it with little to no income since March. She was on CERB then now on CRB, but that does not cover her expenses and she said her accounts will be dry by February and may have to sell her home.
She switched to in-home services,but those were shut down as well, since you can't even legally do that right now either. Quite unfortunate circumstance and certainly sad to see our dear government forcing families into financial ruins with their forced closures, while not providing enough support.
I suppose, the fate of 1000s of businesses across the country.
She is self employed. There are CEBA and maybe other programs, but those are for incorporated business, based on my understanding. She did not even have a business bank account as it wasn't needed.

Does anyone know if government offers any help for self employed aside from CRB program, which is peanuts and doesn't even cover mortgage for most families. Aside from looking into another job( which is also not easy), what would this kind of business/self employed person do? I wanted to help with advice,but my knowledge is limited.
Does anyone have any info what can one do in this situation?
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9 replies
Jr. Member
Apr 2, 2020
193 posts
75 upvotes
CEBA is for all business not just incorporated ones, she should qualify for this program, even if she doesn't have a business account (she will have to open one). As well she should qualify for the new rent subsidy program (CERS) which covers 90% of her rent. Also, she can also contact the BDC about a loan. She can apply online if she need less than $100,000. She can also contact the CFIB.

For my business the Federal government has been amazing!
[OP]
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Dec 10, 2004
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Pronoia wrote: CEBA is for all business not just incorporated ones, she should qualify for this program, even if she doesn't have a business account (she will have to open one). As well she should qualify for the new rent subsidy program (CERS) which covers 90% of her rent. Also, she can also contact the BDC about a loan. She can apply online if she need less than $100,000. She can also contact the CFIB.

For my business the Federal government has been amazing!
Thank you, I'll forward what you mentioned and hopefully it will be of help. I guess they changed the CEBA or perhaps it was under a different name.It was worded in such way, anyone who did not have a business account by that time didn't qualify for that program( it was around March, April when I remember reading it). I am not sure what she can get as she had to shut her location a couple of months ago and switch to working from home and I doubt they would cover that. Too many variables when someone lives and works at the same place and hard to believe government would help. Hopefully she can get some kind of a loan( which is still not ideal, since business probably lost around 40K+ in net profits)

Good to hear it's working for you!
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Newbie
Apr 27, 2016
20 posts
7 upvotes
"She switched to in-home services,but those were shut down as well, since you can't even legally do that right now either"

I get my hair cut by a lady that turned half of her 2-car garage into 1-barber barber shop about 10 years ago. For a short time this year she was operating appointment only (she'd come to your house) but that was a while ago and I've gotten my hair cut a few times in her shop since then, and I'm sure it's still operating like that as of today. So I'm curious about your "those were shut down as well" comment.
Deal Addict
Dec 12, 2009
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Toronto
S0meGuy wrote: I'm curious about your "those were shut down as well" comment.
Shut downs are geographic.
Following the advice of the Health Experts - I will consider voting for Dougie @ 12:01 AM, five days after the next provincial election.
[OP]
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Dec 10, 2004
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Vancouver
S0meGuy wrote: "She switched to in-home services,but those were shut down as well, since you can't even legally do that right now either"

I get my hair cut by a lady that turned half of her 2-car garage into 1-barber barber shop about 10 years ago. For a short time this year she was operating appointment only (she'd come to your house) but that was a while ago and I've gotten my hair cut a few times in her shop since then, and I'm sure it's still operating like that as of today. So I'm curious about your "those were shut down as well" comment.
Non essential businesses have to shut down in Toronto and Peel, She didn't make the cut literally by 300 meters, where the line starts with York region( absurd on our dumb government. ). Those who don't are just do it illegally and I know quite a few various businesses that still operate as they have no choice - go hungry and starve or continue your business illegally. She chose to shut down and not take clients to avoid complaints. 1 complain can result in a fine.
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Member
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Nov 23, 2014
497 posts
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Toronto, ON
dazz wrote: A friend of mine had a hair styling business and just posted on FB about closing down, probably for good. Had to fully shut down a few months ago due to inability to pay $3K/m rent, getting in debt for paying it with little to no income since March. She was on CERB then now on CRB, but that does not cover her expenses and she said her accounts will be dry by February and may have to sell her home.
She switched to in-home services,but those were shut down as well, since you can't even legally do that right now either. Quite unfortunate circumstance and certainly sad to see our dear government forcing families into financial ruins with their forced closures, while not providing enough support.
I suppose, the fate of 1000s of businesses across the country.
She is self employed. There are CEBA and maybe other programs, but those are for incorporated business, based on my understanding. She did not even have a business bank account as it wasn't needed.

Does anyone know if government offers any help for self employed aside from CRB program, which is peanuts and doesn't even cover mortgage for most families. Aside from looking into another job( which is also not easy), what would this kind of business/self employed person do? I wanted to help with advice,but my knowledge is limited.
Does anyone have any info what can one do in this situation?
You are wrong.Just like someone posted above CEBA eligibility rules have been changed /updated many times
Now,you don't need to have a incorporated business nor have a business account (but have to open a new one)
Your friend can apply for CEBA loan..but you should prove that she has a non deferral expenses of $40k or payroll of $20k
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Nov 3, 2020
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she would need to have a BN Business Number registered on or prior to March 1, 2020.

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[OP]
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Dec 10, 2004
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Thanks to all.

I passed the info so at this point hope it will be of some help. Sad to see another business and business owner suffering and unable to pay bills because of the ignorance from "above". Hope it will help in some way.
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