COVID-19 $40,000 Interest-Free Loan - May 20, 2020 Update
The Canadian government has eased the requirements in order to qualify for this loan. The previously required payroll limits have been removed.
The program will now be available to sole proprietors, those that rely on contractors, and family-owned businesses that pay employees through dividends rather than payroll. This will open up this opportunity for more businesses.
In order to qualify now you need:
- A business operating account at a participating financial institution
- A Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return; and
- Eligible non-deferrable expenses (such as rent, property taxes, utilities, and insurance) between $40,000 and $1.5 million.
*This is fantastic news!* Please look into getting this loan to assist your business circumstances during this unprecedented time.
All applications are to be made online through your financial institution, the changes will be implemented within the next couple of days; continue to check with your financial institution's website.
*Fun Fact:* The unwritten requirement not included in this update, but implied is that individuals applying for this loan must have a pulse LOL!
It is advisable to seek professional advice to understand the tax laws that impact your particular situation, and to guide you through the complexities of Canadian Income taxes. AWFS Consulting Inc. offers professional tax, business advisory, and accounting services to clients. The company’s mission is to offer financial leadership and support to clients in this ever-changing economic environment by empowering clients with financial knowledge