Arriving at a solution is a process...
As a business owner, I am sure I am not alone when I say...wow, didn't see this coming. As businesses often focus on revenue, operations, risk mitigation - navigating a pandemic isn't on the list, nor is there a playbook to defer to.
As we glue our eyes daily to the TV for the latest government announcement and then quickly dash back to our home work stations to figure out how this could help our business and our team members, it's become apparent for me that the measures introduced aren't the solution, it's a process in trying to arrive at a solution.
So here we are with some elements of a solution: 1) Canada Emergency Business Account and 2) Canada Emergency Wage Subsidy. What's missing for me is how they can work together. They have a chance to make a greater immediate impact if they work together.
Here's a thought for us to consider...
What if they increased the eligible amount you can receive for the Canada Emergency Business Account to the amount you spent on payroll for the previous quarter (employer's choice how much they would like to ask for the loan). Then that money is delivered to you through your bank mid April (as per the current estimated timing of CEBA). During this time, you can simultaneously apply for CEWS. If you qualify, the government forgives the amount of the loan your business qualifies for (up to 75%) - still taxed of course.
This approach solves two things: 1) money in the hands of the businesses today to keep their team employed 2) the application process for CEWS can go through appropriate due diligence with less strain on the CRA. This doesn't solve the issue if you don't qualify, you're on the hook, but it helps those who know to a fairly certain degree that they qualify for the wage subsidy but can't bridge the gap to receiving cash.
This is another step in the process at arriving at a solution. Please comment or share your thoughts. It's not too late to figure this out and ensure all of us business owners can support our team.
'A
Community-focused entrepreneur, Co-owner, Forward Level, Marketing Chair, GROW by EO yyc, Certified Human.
4yAgree, 6ish weeks is long enough for this not to benefit companies that will have to close doors unfortunately. The CEBA could bridge that time gap allowing business owners some breathing room until the CEWS is processed and money is in the bank. I agree what we have seen to date are pieces of trying to solve an issue but not a solution. As it stands now, the CEBA will be in about 3 weeks, then CEWS roughly 6 weeks, so your idea could be that bridge that prevents (or could have prevented) a lot of small businesses having to take action now unfortunately because of a lack of viable options.
President and CEO of McRally | Growth & Profitability Advisor | Cross-Border Tax Advisor | Professional Speaker | Craft Beer Enthusiast
4yThat could work, however, there would be a lot of questions and concerns that would need to be addressed: -would applicants be subject to the banks' lending criteria or would there be overriding federal criteria for the incremental amount? -could they get this in place so that businesses can still get access next week/week and a half or will it push out the timeline further? -do the banks have the funding capacity to handle this? Also, the CEWS is still not helping a vast number of small businesses that need it and I'm quite sure it's a bit too late for many of them. I don't know what the right answer is but it would help for the Government to start by understanding the profile of businesses most impacted, what their actual needs are, and work from there. Maybe that's their approach and I just don't know, but the results we've seen so far have been less than ideal.
Founder + CEO Forward Level | Founder Pluto Apparel | Top 40 Under 40
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