The NEW Canada Emergency Relief Benefit (CERB)
Update to Covid-19 Government Relief Plans.
This update is not exhaustive of all relief plans rolled out by the government, but deals with the following:
CEBA (Canada Emergency Business Account – up to $40k interest free loans)
CEWS (Canada Emergency Wage Subsidy – 75% wage subsidy for employers)
The NEW CERB (Canada Emergency Response Benefit) – $2000 per month for individuals who have lost income
For unincorporated (sole-proprietorship) businesses with no payroll, (which captures almost all small businesses that seek our help), there is no access to CEBA or CEWS.
And until two days ago (April 15) they had no access to CERB if they showed any revenue.
The NEW CERB – The government announced on April 15 that self-employed individuals can earn up to $1000 per month and still qualify for CERB.
This will help a lot of people who were conflicted as to whether they should simply stop earning in order to qualify for CERB, or delay invoicing for work performed, or even work “under the table” and avoid declaring income. There has been a lot of discussion about this on various chat groups for individuals with very small earnings as sole-proprietors.
The recent announcement should come as a relief to those who are in “non-essential” vocations but have online clients (those who are in the music, yoga, acting, education or other fields), and are able to continue earning, albeit relatively small amounts, this way.
Businesses with payroll between $20,000 and $1.5 million in 2019 may qualify under the revised CEBA (revised April 16) for up to $40,000 from their financial institution. The loan is interest free. 25% of the loan (up to $10,000) may be forgiven if the loan is repaid in full by December 31, 2022, otherwise interest will accrue at 5% per annum beyond that date.
The CEWS provides relief to employers who have experienced a 30% drop in revenue (15% drop in March). The aim of the subsidy is to reduce or eliminate lay-offs by the employer. For qualifying employers, the government will provide 75% of each employee’s weekly earnings up to a maximum of $847 per week (per employee) until June 6. The online application should be available through CRA in the coming weeks.
If you are struggling and unsure of your options, give us a call.
We’re here to help.
About The Author
Jacques Rusinek
Dr Jacques (Jojo) Rusinek successfully challenged the National Insolvency Exams in 1998 and was licensed as a trustee in bankruptcy (now known as Licensed Insolvency Trustee) in 1999. Prior to becoming a bankruptcy trustee, he practiced in the health care field where he helped people to become pain-free. Now he helps people to become debt-free.
