There’s no better time (covid19) than now to support our business community…we know it will help others too.  Equally important, it won’t cost you anything other than your time.   For many entrepreneurs this is all they have to give right now…let us help you use it for good.

For Business seeking financial relief during this uncertain time, there are financial options to truly help you. Such as; deferred payments from existing creditors AND subsides from government bodies AND adding additional debt ( not withstanding any private equity or bootstrapping options). 

Determining your short term cash flow needs is priority one.  But there’s some homework you’ll need to action in order to build this forecast; Clearly communicating with both your debtors and creditors (Banks and Payables/Creditors) on best case scenario’s.  Your plan won’t be simple to complete but it will cover key touch points a banker concerns themselves with regarding credit requests (Extensions or new debt).  Your projections will need to be reasonable and verified taking into account the banks and our political leaders offers in support to your business.   Verified means you’ve contacted your clients on credit and those you owe and have concluded per the projected proper timelines.      

To put this into context and, because your business needs to survive, here’s a timeline process for you to consider and find comfort in (You’ve done your best) while working through probabilities and outcomes.

Let’s look at the government programs (Banks included) you can use to assist your business.


Federal –

Provincial   Scroll through to find your province.

Any government deferments offered should be realized – hold all payables as long as offered.   This means, do not pay any level of government dues owed per the dates and guidelines offered.  I recommend you  ‘tax’ your business the funds owed when they are owed and put them into a separate account.   Only draw on them when the cash flow needs arise…and vice versa – pay back those dues in the separate account when your capital position is ahead of plan.   

Let’s break down the programs offered between ‘deferrals’ and ‘new debt’ opportunities.  

This government page discusses both deferrals and debt –


Federally, business can defer payment of collected Sales taxes – GST/HST including Custom and excise taxes until June 30 2020. 

               Ditto for income taxes…deferred remitting till August 31 ,2020

Provincially, see link provided above.   Examples of payment postponements; provincial sales taxes, educational portion of property taxes and WSIB payments.   Hold these remittances

Municipal – check your city/town websites and their instituted business support programs.  Examples that are payable reliefs:  municipal taxes…their support otherwise is much more limited than the other two level of governments.   Many of the other offerings are deferral on rate increases and program savings including real savings on an individual level that assist small business workers i.e. free bus service.

New Borrowings ( aka Access To Credit ) –

There are a variety of new program offerings coming out every several days you should be aware of and consider where appropriate – keep the federal page link above.

Federally sponsored programs are generally the level of government that can support business, through the banks and their own deferral charges imposed on your business.   This is because our lending institutions are governed by our federal government however, the provincial financial oversight bodies – Financial Services Commission by province  and CDIC/MoF who collectively oversee the local Credit Unions – offer funding ( and relief ) programs too.

Federal legislation and initiatives that are in effect now:  New Canada Emergency Business Account include interest free loans up to $40,000 where the business can prove a 2019 payroll between $50k – $1M.   If they can pay if off before Calendar YE 2022, 25% is for-giveable – I highly recommend requesting this offer.   Call your business bank and if appropriate ( you export and/or import ) EDC will administer this offering too.   There is another co-lending program initiative between bdc and your commercial bank to support additional cash flow loans.   Be clear and have your loan request and/or deferral outline ready before you call your banker – this is the deal maker!!!  If you need help with this request because your bankers are delayed due to the over-whelming requests, call me and I’ll outline how you can prepare this request


75% subsidy on employee wages.   This applies to company’s who meet the criteria of provable Taxable Capital of no more than $15M for 2019.   This support is short term AND is being modified frequently    ( the actual delivery date of the subsidy payment ) so estimate this ‘receivable’ retroactive to March 15th and include in your cash flow forecast.

Alternative financing for fast growth, supply chain financing, normal cash flow financing ( business as usual ), special leasing needs are core financing programs we originate for business.


The banks are governed by Basel III which means there are capital restriction and hold back rules that govern them…to a point.   The pandemic uncuffs them and as a result of this pandemic, their restrictions have materially been loosened providing billions in liquidity.   How does this help you?  Simply, the banks now have a variety of tools they can use to assist you in your cash crunch.   For instance, they can and in many cases, at your request, postpone term debt and mortgages significantly easing the short term cash flow challenges.   This is great relief for many and in some cases in addition to the wage subsidy business can receive also.

Business borrowing is a challenge that you can request on your own or you can call us to assist with this approach.   Tip: Show to the banks ( Sched 1 and BDC) where you have a cash flow shortage over the next 6 months outline the request and clearly outline the ask and planned payment plan.   Don’t under shoot here, plan for worst case scenario and outline that to the bankers.


EDC is mandated to secure borrowers on their funding needs to import/export so most definitely understand their program and get them engaged asap.

Understanding the programs and factoring them into your cash flow forecast will illustrate financially your needs.   Just a quick final tip – your banker has no time for long stories – be effective and timely on your ask and proof of need – illustrated in your cash flow forecast.   Bullet points in a one pager is choice for this particular credit request.

There are a lot of great communities across the country fighting for your business financial survival, we applaud them for this…this report reflects their initiatives.   Again, I highly recommend you monitor the above government url sites daily keeping current on all new financial initiatives.

Here’s also why we we wrote this strategy –  We’re confident it will assist you if you’re struggling on a process on how to get started righting your business.