Grants for May 2020

75% Off Your Business Rent. Do You Qualify?

Have your monthly sales in April, May and June 2020 projections dropped at least 70% compared to the same months last year?

If your business made less than $20 million in revenue last year and your monthly rent does not exceed $50,000, you may qualify for¬ Canada Emergency Commercial Rent Assistance (CECRA).

BUT! Your Landlord Must Apply, not you.

If you meet the above criteria, do yourself a favour. Forward this article to your landlord and have him or her contact me to discuss how they can take benefit from the program and cut 75% off your monthly rent for April, May and June 2020.

Please stay at home if you can.¬ We will get through this together. Our team is fully available.

Tip #4: Emergency Wage Subsidy Calculation

The¬ Canada Emergency Wage Subsidy¬ has been extended past June 6. On one hand, it is a good news if your business is in trouble. On the other hand, it is an evidence of how bad the economy is. There will be a long way to recovery. The updated eligibility rules will be published in the next few weeks and we will update you.

I recently shared with you 3 pitfalls about the Emergency Wage Subsidy you need to be aware of. If you missed them, here is the link. I am happy to share the 4th one with you.

4. Misalignment between your pay periods and eligible pay periods

Chances are, that your payroll expenses are inconsistent month after month and week after week. Chances are, that you pay periods do not match the eligible pay periods:

  • March 15 – April 11, 2020
  • April 12 – May 9, 2020
  • May 10 – June 6, 2020, etc.

To align you pay periods with eligible periods,¬ break down your payroll and pay periods accordingly. For example, if your pay period is a calendar month, and your payroll is $10,000 in March, and $12,000 in April, here is how you calculate eligible payroll:

  • $10,000 X (17/31) = $5,484 i.e., the payroll for eligible 17 days of March.
    +
  • $12,000 X (11/30) = $4,400 i.e. the payroll for eligible 11 days of April.
    =
  • $9,884. This is the eligible payroll you can claim the wage subsidy against.
    Do not use monthly average!

The math gets even more complex if you pay weekly or biweekly and your pay periods don’t align to the eligible ones.

How to Apply? Apply via My Business Account with Canada Revenue Agency.

WHY CHOOSE US TO WRITE YOUR APPLICATION?

  • Trusted partner with 7 years of experience¬ in government funding applications writing. You need a partner with expertise, not someone who happens to have access to your payroll.
  • Program complexity. The Emergency Wage Subsidy is not as easy as it seems. Review the¬ program rules¬†and decide for yourself.
  • Maximum benefits.¬†Our deep understanding of the program will help you get the most out of it.
  • Fair fees.¬ We will not take advantage of fellow Canadians in trouble and offer a fair and reasonable fee for wage subsidy applications.

CLICK HERE TO GET HELP WITH EMERGENCY WAGE SUBSIDY APPLICATION

Please stay at home if you can.¬ We will get through this together. Our team is fully available.

ANTI-CRISIS SOLUTION

Agri-Food Open for E-Business ‚Äď Targeted Intake

Amount: Up to $5,000

Get Started

Commercial Rent Relief is on the way

Are you a¬ commercial tenant struggling¬ to meet monthly rent due to the business slowdown or shutdown?

Are you a commercial¬ property owner with struggling tenants?

The relief is on its¬†way. The¬ Canada Emergency Commercial Rent Assistance Program¬†is a forgivable loan provided to the commercial property owners with struggling tenants that will cover¬ 50% of the landlord’s fixed commercial property expenses. The loan will be forgiven if the landlord reduces the rent by at least 75% and sign a no-eviction agreement with the tenants. The application¬†intake will start in the next few weeks,¬†but the program is retroactive to April 1, 2020.

Eligibility Requirements

Eligible Small Business

  • Pays monthly rent not exceeding $50,000 in gross rent payment;
  • Generates no more than $20 million in annual pre-crisis sales;
  • A non-essential small business that has temporarily closed by the provincial or territorial government order;
    OR
  • Is experiencing a 70% drop in pre-crisis revenues (determined by comparing revenues in April, May or June to the same month in 2019 or compared to average revenues for January-February 2020).

Eligible Landlord

  • Owns a commercial property leased to eligible tenants;
  • Has a¬†mortgage loan secured by the commercial property leased to eligible tenants;
  • Is willing to reduce monthly rent for April, May, and June 2020 by at least 75% and sign a no-eviction agreement with eligible tenants;
  • Have declared rental income on a personal or commercial tax return for tax years 2018 and/or 2019.

CLICK HERE TO GET HELP WITH CANADA EMERGENCY COMMERCIAL RENT ASSISTANCE PROGRAM APPLICATION.

FORWARD THIS ARTICLE TO YOUR COMMERCIAL PROPERTY LANDLORD.

Please stay at home if you can.¬ We will get through this together. Our team is fully available.

ANTI-CRISIS SOLUTION

Emergency Wage Subsidy: 3 Pitfalls You Need to Know

As you may know, Canada Emergency Wage Subsidy that provides 75% of the payroll, opened its doors on Monday, April 27, 2020. After filing the first few applications for our clients, I wanted to warn you about 3 major pitfalls we bumped into.

1. Choosing incorrect baseline sales to determine eligibility

To qualify for the first wage subsidy claim, you must demonstrate the decline in sales by at least 15% in March 2020 compared to either March 2019 or the average of January and February 2020. The selection determines the baseline for all future wage subsidy claims. It means that if you chose to compare your March 2020 sales to March 2019 sales, you would have to compare your April 2020 to April 2019 sales to qualify for the next wage subsidy claim. You are not allowed to change the approach. So be strategic and choose the right one from the beginning.

2. Missing to claim CPP/QPP and EI reimbursements

CRA did an excellent job creating an Excel calculator for the wage subsidy amount. But they forgot to create one for calculating source deductions amounts you can reimburse. If your employees were on paid leave (due to sickness or lack of work, for example), you could claim the amounts of CPP/QPP and EI contributions you paid. The contributions formula varies from province to province. Make sure you calculated the amounts accordingly.

3. Lack of direct deposit set up with CRA

Even if you have My Business Account with CRA, please, make sure that you also set up a direct deposit with the agency. It will help you get the subsidy much faster.

How to Apply? Apply via My Business Account with Canada Revenue Agency.

WHY CHOOSE US TO WRITE YOUR APPLICATION?

  • Trusted partner with 7 years of experience¬ in government funding applications writing. You need a partner with expertise, not someone who happens to have access to your payroll.
  • Program complexity. The Emergency Wage Subsidy is not as easy as it seems. Review the¬ program rules¬†and decide for yourself.
  • Maximum benefits.¬†Our deep understanding of the program will help you get the most out of it.
  • Fair fees.¬ We will not take advantage of fellow Canadians in trouble and offer a fair and reasonable fee for wage subsidy applications.

REPLY TO THIS EMAIL TO GET HELP WITH EMERGENCY WAGE SUBSIDY APPLICATION

Please stay at home if you can.¬ We will get through this together. Our team is fully available.

ANTI-CRISIS SOLUTION