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The COVID-19 crisis: We're helping your business get through it

Posted on Thursday May 07, 2020


The COVID-19 crisis: We're helping your business get through it

Hard-hit by the forced shutdown of commercial activities due to COVID-19, many New Brunswick companies are now struggling to keep their heads above water. Fortunately, governments and financial institutions are there to support entrepreneurs, who are essential to the economic vitality and development of our society.

René Collette, UNI’s Senior Vice-President, Personal and Commercial Banking, answers key questions about the various measures being taken to help you through this period of major upheaval. Learn more about the Business Credit Availability Program (BCAP), the Canada Emergency Business Account (CEBA) and the Canada Emergency Wage Subsidy (CEWS), as well as what UNI is doing to assist our entrepreneurs.

How do I find out which programs my business is eligible for?

Since the beginning of the crisis, René Collette has observed that the eligibility of a business may depend on its sector of activity, its financial situation, the extent of its lost revenues and its specific characteristics.

3 steps to find the assistance program that is best for you

Step 1: In order to avoid layoffs or to be able to rehire its employees, the business should verify that it is eligible for the Canada Emergency Wage Subsidy (CEWS). This program provides a subsidy equal to 75% of the employees’ wages for a 12-week period. The business must apply directly through the Canada Revenue Agency’s (CRA) website under “My Business Account.” We recommend that businesses register for direct deposit with the CRA to receive this subsidy more quickly. Details of this program can be found on the Government of Canada website.

If the business is not eligible for the 75% wage subsidy, it may be eligible for the 10% Temporary Wage Subsidy, a three-month measure that reduces the amount of payroll deductions required to be remitted. UNI Payroll clients can apply for this on the website. Others should seek the assistance of an accountant.

Step 2: The company should check to see if it is eligible for the Canada Emergency Business Account (CEBA). This program allows businesses with a payroll between $20,000 and $1.5 million in 2019 to obtain a $40,000 interest-free loan to cover part of their operating costs. Twenty-five per cent (25%) of the amount of the loan ($10,000) is eligible for forgiveness if the business repays $30,000 by December 31, 2022. Companies can apply directly on the UNI website.

Step 3: The Business Credit Availability Program (BCAP) can help businesses that need short-term liquidity to support their operations during this pandemic. The loan amount is largely dependent on the need for liquidity and the ability to repay over a period of a few years.

To properly assess their cash-flow needs and determine the best options available to them, Mr. Collette encourages entrepreneurs to contact their account manager. “This is the key to getting all the help and support you are entitled to. If you don’t already have an account manager at UNI, you will be assigned one. Please do not hesitate to contact us.”

The Business Credit Availability Program: How do I access it?

René Collette, Senior Vice-President, Personal and Commercial Banking at UNI, says it’s easy for UNI’s client members to access the BCAP, “a $65-billion federal program offered to small and medium-sized enterprises (SMEs) by Export Development Canada (EDC) and UNI. SMEs should contact their UNI Business account manager, who will work with them to secure the loan. The loan can be used to cover short-term operating costs, such as employee wages or rent, through the BCAP guarantee.”

How does the Emergency Business Account work for Canadian businesses?

Several assistance programs and relief measures are offered by the Government of Canada and the Government of New Brunswick. Among the assistance offered, Mr. Collette notes that the Canada Emergency Business Account (CEBA) is the one that meets the needs of the most businesses. “This program provides a $40,000 interest-free loan to small businesses and non-profit organizations to help them cover their operating costs during the crisis.”

CEBA eligibility criteria

Among other things, Mr. Collette mentions that to have access to this program, the borrower must be a Canadian business in operation since March 1, 2020. The business must also be registered in the federal tax registry and have paid a total employee payroll of $20,000 to $1.5 million during the 2019 calendar year. The borrower must also have an active business chequing account with the lender that serves as the borrower's primary financial institution, and this account must have been opened no later than March 1, 2020. Finally, the borrower must not be in arrears on a loan from the lender by 90 days or more as at March 1, 2020.

Mr. Colette points out that UNI is accredited to process CEBA loans and encourages its borrowing clients to apply directly on UNI’s website.

Provincial government loans and subsidies to ease the burden

The provincial government recently announced several measures and programs designed to help businesses and non-profit organizations get through the COVID-19 crisis. A detailed description of each one, including eligibility requirements, can be found on the Government of New Brunswick website.

What is the purpose of the Canada Emergency Wage Subsidy (CEWS)?

“The Canada Emergency Wage Subsidy (CEWS) provides eligible employers with a wage subsidy of 75% of their employees’ salaries for up to 12 weeks. This measure is intended to encourage the re-employment of laid-off workers, prevent further job losses and help businesses resume normal operations following the crisis. The program is designed for businesses facing a decline in revenue due to COVID-19 during the eligibility period and requires monthly registration,” said Mr. Collette.

What is UNI doing to help businesses?


To help our borrowing clients deal with the situation, we have put in place a special measure that provides a little respite

Mr. Collette is aware that recent required closures and isolation for preventive purposes are causing a great deal of concern. They now have the option of deferring their payments (principal and interest) on all or part of the loans they hold with UNI.”

“As this unprecedented period may result in changes to business banking patterns and management, no fees will be charged for insufficient funds until April 30. Any annual review fees have also been deferred to after the fall of 2020.”

With respect to payment deferrals, Mr. Collette invites client members to contact their account manager to discuss the various options available to them, or to contact UNI Business directly to be assigned an account manager.

What if I am struggling with my personal finances?

Regardless of the financial situation an individual or company is facing, Mr. Collette stresses that UNI is there to support them. “For personal finances, there is also the option of deferring payments (principal and interest) on all or part of loans held at UNI. Whether for mortgage and personal loans or business financing, UNI is there to help and support you through this difficult period.”

Client members can apply to defer payments on their personal loans directly online.

How do I remain calm during this unprecedented situation?

Mr. Collette recognizes that the situation is evolving rapidly, and that the eligibility criteria for assistance programs and relief measures for businesses are constantly changing. In his opinion, the best way to stay informed is to check the Government of Canada and the Province of New Brunswick websites on a daily basis for up-to-date information on the various programs in place.

Tailor-made help to meet your needs

Mr. Collette emphasizes that it is more important than ever to communicate regularly with your account manager for the latest support measures and to keep them fully informed of the challenges facing your business. “We’re well aware that many of our entrepreneurs are struggling right now. By talking with you, we learn about your specific situation, which allows us to work with you and help you get all the assistance you need to get through this crisis. Because your situation is unique, we take the time to develop a plan that is tailored to you.”

There is no doubt that this situation is unusual. Caisses populaires acadiennes were created in a difficult economic context. Throughout our history, we have always worked with our client members. We have supported them, and together, we have become stronger. Our cooperative values are at the heart of our business decisions, and even more so during times of crisis.

The majority of services at UNI are available by telephone at 1-855-842-2511. Our account managers are here to help determine the best solutions for you.

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