The Canada Business Credit Availability program provides $40k government guaranteed loans to small businesses and non-profits to help cover operating costs that cannot be deferred such as payroll, rent, utilities, insurance, debt payments and property tax. This will essentially work like a revolving line of credit for 2020. At the end of this year any outstanding balances will be converted into a 5 year loan maturing Dec 31, 2025. No interest applies until Jan 1, 2023. If you pay back 75% of the term loan by Dec 2022 the remaining balance will be forgiven. So that means up to $10k will be non repayable. (Please note that the above information was gathered from RBC so I have yet to confirm whether all banks are treating this the same way.)
Do you qualify?
It is primarily based on payroll. If your total 2019 payroll was between $50k and $1million you likely qualify. This program is being administered through the commercial banks. We’ve seen emails sent to clients from RBC and Scotiabank but understand all the financial institutions are actively getting their portals online this week to facilitate applications so others are enroute if not yet sent out. This program is not likely available in person and will be fully administered online.
How do you confirm your 2019 payroll?
Check Box 14 (Employment Income) on your 2019 T4 Summary and if the number is between $50k and $1Million you qualify.
What information will you need?
Your employer account number located at the top of the 2019 T4 Summary of Remuneration Paid