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The Govt. of Canada has been playing its role responsibly since the start of the COVID-19 pandemic. This has also been evident to a huge extent in the financial sector and while making things economically stable. A well-planned strategy so that businesses esp. SME’s can recover themselves in the wake of the recent happenings regards to ‘COVID-19’. It’s not only a national level threat. But, it’s a global challenge that has affected many lives as well as the economies. Unemployment can be a major cause that needs to be dealt with, as there have been huge financial losses. The traveling and tourism sector in Canada has also been affected. This has been to a larger extent than in a couple of decades.
JUSTIN TRUDEAU’S ANNOUNCEMENT
27th March 2020 was the date of the announcement made in public. This was related to banks and financial institutions that shall be offering loans that will be 1-year interest-free. Hence, the amount shall be based on the requirements of the businesses. In the same announcement PM, Justin Trudeau also said about the loan forgiveness. He emphasized that the Govt. can waive off $10K if the businesses and SME’s are unable to pay. This is only for those businesses who can provide proof of their circumstances and losses. This loan shall be beneficial for SME’s mainly to pay off the operating costs. The operating costs can’t be deferred due to the pandemic COVID-19.
The interest of the employees in managing the loans holds huge priorities for the Govt. & Justin Trudeau. These priorities are regards to job security and retention as govt. policies are strictly in favour of employees all over the great country Canada. The recruitment and retentions policies all over in Canada has seen many changes and fluctuations. The main reason for this movement is the level of risks that companies have then it was Pre COVID-19.
Canada, as a country has shown a huge fighting spirit against ‘COVID-19’, as most economists agree on the same accord. They are specific and precise that it’s a great threat to the Canadian economy especially affecting the real estate. The real estate sector has been most affected by the current pandemic and its effects are growing every day in terms of losses.
However, scenarios can fluctuate and things can normalize but it highly depends on how quickly the world can be free from coronavirus. Although, the pandemic is highly deadly and dangerous in terms of loss of life. It has also been the cause of many financial losses in parallel.
THE MOST ELIGIBLE BUSINESSES
For the businesses to take full advantage of the current policy developments it has to fulfil the eligibility requirements set by the Govt. of Canada.
As part of the eligibility, the business should be an operating company that is based in Canada. It should have an annual payroll i.e. between $50K and $1million to fall in the category of small businesses. The primary bank is the one that businesses use for their daily activities. Hence, the business’s primary bank account should be used for taking the loan payments.
The eligibility for all SME’s is highly important making things easy for the most deserving candidates and companies. It definitely eases things for the Govt. in the long run as the Govt. doesn’t want to spend their resources on those who are fake or not deserving.
Business eligibility means, either the business shall be able to return the amount within the decided time or convert the loan into the convertible loan option. However, the chances to end up being a loan defaulter are the least in the current policy framework.
A CONVERTIBLE LOAN IN 3-YEARS TIME
In case if the loan cannot be paid by the 31st Dec 2022 the loan can be converted into a 3-year term loan i.e. with an interest of 5%. Making it a good recovery option for the SME’s due to the convertible loan benefit. The flexibility options associated with this loan is a huge advantage for the most affected businesses in the current financial crisis.
LOAN AVAILABILITY AND MBE ACCOUNTING’S ROLE
The loan shall be available for the public at the beginning of the 6th of April 2020. All the financial institutions and the banks shall not accept any applications until that time. Its availability amid coronavirus makes it one of the most featured options for business sustainability and recovery.
MBE Accounting is playing a huge part in this regards i.e. the financial recovery through loans provided by the Govt. The company MBE accounting is providing its services of consultancy, paperwork and taxation matters, as well as rest of other mandatory tasks needed for the loan application. It is providing very useful information and helps in the processing of loans through a diverse team of experts and accountants. MBE accounting has always proved in the past. MBE accounting is a highly motivated and dedicated company. This is just for the sake of client needs and demands.
The financial industry lacks the trust factor, however, goodwill is a key attribute. It’s the reputation in the financial industry after years and years that counts most for clients.
