Monday, April 6, 2020

Good news! They are doing this thing called a 75% wage subsidy businesses can qualify for. Oh, hang on, your business model sells labour so if you actually have enough work to maintain your labour force, it is unlikely that your sales will drop by the required 30%. No, I do understand that your net income has dropped by 70% unfortunately they look at your gross sales. Yes, I know most of your clients aren't paying their bills right now. You're right, it should be about cash flow, but unfortunately it isn't. I am sorry.



Yes, I've looked into it for you but unfortunately, the 75% wages subsidy indicates that it will require you to show a 30% drop in gross revenues month over previous year month. Yes, I realize you weren't open until July last year. I understand you need help too, yes. I'm not sure as they haven't posted any more information since the last press release. I am hoping they will include some other method for those that were new businesses this year, but I cannot be sure. I am sorry.



They have this new loan called the Canada Emergency Bank Account and they will loan you up to $40,000.00 interest free and 25% of it up to $10,000.00 will be forgiven if you pay it back on time! Oh, wait a minute, you are a proprietor that doesn't actually have a payroll account or a business who's payroll was less than $50,000.00 last year, or a corporation who disperses income through dividends not payroll so you won't qualify for that. Yes, I know that doesn't seem right for a loan that is supposed to be an operational loan. You are definitely trying to operate. No, I don't see a way around this because they are basing it on the 2019 year which has been completed already. Yes, you may need to shut your doors. I am sorry.



Yes, you're right EI is here to help in exactly these situations! Your employees can apply for EI, and they can still work a few hours to help you keep things going. For every dollar in wages they earn they give up $0.50 of their benefits but that allows them to help and still have money for their bills. Oh, hang on. It turns out the government has just changed it so they won't be processing any EI applications any more so the only option you really have is to terminate your employees so they can apply for the CERB benefit. Yes, I realize that amount is actually less than the amount they would qualify for on EI. Yes, you are right they have contributed all these years so they would have this coverage in an emergency. Yes, I agree this doesn't seem right or legal. Yes, you are right it would have been nice to be able to know your employees could pay bills but still come in to help you through this difficult time for a few hours. I am sorry.

I am sorry as a proprietor with no payroll there aren't any programs available to you for subsidies. Yes, I realize your proprietorship normally generates $60,000.00 in income for you a year, but the government has specifically said it must be through payroll in order to qualify for their programs. The only benefit I see that may help you is the CERB however this actually requires you to have no income at all. Yes, that means you would need to shut down completely to collect it. You're right, this seems counterproductive. Yes, you should be able to earn as much as you can and then receive a supplement if you need it. No, I don't really know where you should go from here. I am sorry.

And by the way.none of the applications are open yet, not sure when they will be.

I am sorry.

Posted at 12:31 PM