The expanded CEBA are available through Canada’s large banks tomorrow. More lenders, like credit unions, will be offering this product in the very near future. We know many small businesses have been waiting patiently in these trying times – help is on the way.

To sum it up for you and need to know I found these answers to my questions and links on the internet, which may also interest you.

How does the CEBA loan work?
If you are a qualifying small business customer, the CEBA program provides access to a $40,000 loan: 0% interest until December 31, 2022. … If the balance is not paid by December 31, 2022, the remaining balance will be converted to a 3-year term loan at 5% annual interest, paid monthly, effective January 1, 2023.

What can I pay for with my C E B A loan and eligiblity?
https://pm.gc.ca/en/news/news-releases/2020/05/19/prime-minister-announces-expansion-support-workers-and-small

According to the Government of Canada, funds from this loan can be used only towards operating costs that can‘t be deferred, such as payroll, rent, utilities, regularly-scheduled debt service, insurance, and property tax.

So what are non deferrable operating expenses?
Understanding Non–Operating Expense.
Non–operating expense, like its name implies, is an accounting term used to describe expenses that occur outside of a company’s day-to-day activities. These types of expenses include monthly charges like interest payments on debt but can also include one-off or unusual costs.

What is the CEBA?
The $25-billion program opened to applicants on April 9, and provides a $40,000 loan that is interest-free until Dec. 31, 2022

Is CEBA loan taxable?
In very simple terms, the CEBA loan is unlike all others you have seen before. Not only is it interest-free for 2.5 years, if you repay $30,000 within 2.5 years, you get a $10,000 “gift” from the government in the form of debt forgiveness. I would expect the $10,000 forgiven loan amount to be taxable.

Can you use CEBA to pay debt?
Terms of  Use– the borrower would not use the funds to repay existing debts, pay dividends, distribute or increase management compensation. It means that CEBA cannot be used to pay dividends or increase compensation to owner/managers.

What do you need to apply for CEBA?
To enroll in CEBA, you must provide the 15-digit CRA account number which is found on your organization’s 2019 T4 Summary of Remuneration Paid statement. If you do not have employees, you are not eligible for CEBA.

NEWS RELEASE (June 15, 2020), found on the government of canada site.
https://www.canada.ca/en/department-finance/news/2020/06/more-small-businesses-can-soon-access-the-canada-emergency-business-account.html

More to come on Self Employed Individuals who don’t pull a salary but may pull dividend. Can you apply for Small business loan of up to $40,000 and what you are allowed to use it for.

Food for thought! Interesting stuff!

Are you at risk of being de-rostered and what does this mean to you?

Did you know using a walk-in clinics frequently when you have a family doctor could cause him/her headaches. In turn you can be called in and advised that you would be taken off his/her roster.

So what does this mean. It is up to your doctor to explain to you the patient what using walk-in clinics means to him and you and how it will affect him. Click here for more (there is a link below that explains a little more)
or read on and click on the link below.

Signing an agreement as a patient and being rostered means the physician’s team commits to being available by phone and through extended office hours during evenings or weekends. 

As far as care, the doctor can continue to care for the patient after he/she is being de-rostered but the patient could no longer access the other services at the family health group, such as consultations with clinic dietitians or social workers, or take advantage of special health programs such as diabetes or diet management.

The article explains further how doctors should do a better job explaining this to their patients as they get dinged. The Government funds get clawed back each time a patient goes to a walk in clinic. Hospital visits do not fall into this and do not affect your doctor.

Patients do not understand what the ins and outs are and how walking into a clinic can mean head aches for their family doctor, unless it is has been explain.  As a patient we don’t know these things and cannot be expected to understand or have this knowledge unless it is explained.

Who knew.  Check this link below (Interesting read)

https://www.ctvnews.ca/health/why-your-walk-in-clinic-visits-could-mean-trouble-for-your-family-doctor-and-you-1.2775362

DEAD LINE: Must apply before December 31, 2020

Your personal information may have been compromised!

They wrote in their letter ;
“Desjardins has conducted an internal review and analysis, and found that an ill-intentioned employee had access to the personal information of their members and clients who have or had a caisse (banking) account, credit card or point-of-sale financing (in-store Accord D financing and auto and leisure vehicle loans). No credit cards or other payment methods, like Interac or debit cards, have been compromised.”

In order to help protect you they are offering a FREE 5 year protection plan when you sign in to www.desjardins.com/personal-information and obtain an activation code which you will be able to use when signing up to Equifax credit monitoring service.

Sign in to www.desjardins.com and follow the prompts to get your code if you have had any activity with Desjardins lately or years ago, even if your account has been dormant for years and years, they are offering this FREE service to you for the next 5 years. This service will allow you to check your credit score free of charge as many times as you wish. It will provide you with alerts and notifications if anyone tries to open an account under your name or if any fraud is happening. This is an excellent service and is FREE.

I strongly suggest even if you have never worked or dealt with Desjardins that you have an equifax account and check your credit and account on an annual basis. There is a small fee for this, but it is minor. You will be able to pull up a detailed report about your credit history and accounts and if you notice something that doesn’t seem correct you will be able to dispute it before you loose everything, which is possible.

That said Desjardins is offering, I believe, up to $50,000 security payout covering some expenses if your identity has been stolen and will dispute any fraud or transactions that appear to be fraudulent on your behalf.

Eligibilty
In order to sign up for the Equifax credit monitoring service, you must:
– Have a Canadian mailing address – PO> Boxes don’t count
– Have an email address
– Be at least 18 years old
– Have a credit file (e.g., credit card, mortgage, line of credit)

Googled NVCC and got the following….…..

Non-viability contingent capital (NVCC) securities……..Subordinated debt or preferred shares that are issued by banks and can be converted into common stock if a trigger event occurs.

What are bail-in and NVCC bonds? Bail-in capital bonds and non-viable contingent capital (NVCC) bonds are distinct from existing debt issued by financial institutions primarily because they are both designed to convert into common equity in the event that regulators determine an institution is no longer viable.

Want to read more:
https://www.mondaq.com/canada/Finance-and-Banking/178502/The-Implementation-Of-The-New-Non-Viability-Contingent-Capital-Requirements-Of-The-Basel-III-Rules

People also ask “Can banks seize your deposits?”

To be clear, depositor funds and assets can be legally confiscated by the bank to maintain its solvency. This is called a “bail-in,” and it affects every depositor in the US. If you are like most Americans, you too are a depositor, meaning that your funds are vulnerable to confiscation.
Dec 21, 2018

Can the Canadian government take your money from the bank account?

When you deposit money into your bank savings account, you in effect are lending money to the bank. … What this means is that if a Canadian bank starts to fail, it would be allowed to seize the money in your bank account or wipe out your shareholder value if you happen to own that bank’s stocks to pay its bills.
Feb 10, 2017

Royal Bank of Canada to redeem NVCC subordinated debentures

http://www.rbc.com/newsroom/news/2020/20200424-subdebentures.html

http://td.mediaroom.com/2020-05-19-TD-Bank-Announces-Redemption-of-2-692-Medium-Term-Notes-Non-Viability-Contingent-Capital-NVCC

Bank of Montreal also has NVCC
https://newsroom.bmo.com/index.php?s=2429&item=129179

TD Bank Announces Redemption of 2.692% Medium Term Notes (non-Viability Contingent Capital (NVCC)

http://td.mediaroom.com/2020-05-19-TD-Bank-Announces-Redemption-of-2-692-Medium-Term-Notes-Non-Viability-Contingent-Capital-NVCC

CIBC Announces Results of Conversion Privileges of NVCC Preferred Shares Series 41

http://cibc.mediaroom.com/2020-01-20-CIBC-Announces-Results-of-Conversion-Privileges-of-NVCC-Preferred-Shares-Series-41

For Scotia Bank, search NVCC Scotia Bank

Does it matter if it is called “Bailout or Liquidity” Support?

Excerpts: Financial Post wrote:
“Where MacDonald says “bailout,” a financial ministry official says “liquidity support” While MacDonald said the government tried to hide the numbers even from Access to Information requests, the official said the bank funding was “clearly, publicly laid out – repeatedly.”

Read more:
https://business.financialpost.com/news/fp-street/did-canadian-banks-receive-a-secret-bailout

Moving forward to 2015-2016 (7 years later):
The federal government thereafter confirmed its intention to proceed with a bail-in regime in both the 2015 budget and, following the change in government, the March 2016 budget. What they call a “Bail-in” You need to understand the Bail-In and how it can affect you and your family
https://theripregistry.ca/bank-bail-in-c15/

It is important to note:
The 6 major banks include National Bank (referred to as D-SIBs) are too big to fail which cannot be come bankrupt and liquidated without imposing significant costs to the economy.

In particular, Division 5 contains three main components that establish and implement a bail-in regime for Canada:

• the maintenance, by D-SIBs, of a minimum capacity to absorb losses;
• the ability of the Canada Deposit Insurance Corporation (CDIC) to control a D-SIB on a temporary basis; and
• the ability of the CDIC to recapitalize a D-SIB by converting its non-common shares, subordinated debt and prescribed senior liabilities into common shares.

What is CDIC (Canada Deposit Insurance Corporation)

Deposits held in an RRSP

Here’s an example of a portfolio within a RRSP – and what does (✓) and does not (✗) qualify for CDIC coverage:

• $ 10,000 in a GIC ✓
• $ 50,000 in a term deposit ✓
• $ 50,000 in stocks and bonds ✗
• $ 130,000 in mutual funds ✗
• = $240,000 of which $60,000 is covered.

What’s protected & why:

The GIC and term deposit are eligible deposits within an insured category – a RRSP. Eligible deposits within one category are insured for up to $100,000. So $60,000 of the $240,000 in total deposits is covered.

What’s not insured:

CDIC does not insure stocks, bonds or mutual funds, so $180,000 in those investments is not covered.

Deposits held in an RRSP

Hopefully this information will have you ask the important questions which will lead you to read more.
There is much to think about.
Do you have savings? Do you have locked in investments? Do you have a mortgage and equity in the property?

Should a bail-in occur, how are you protected? Each individual has to evaluate their own investments and products in their portfolio and see how the CDIC, the Bail-In and other Federal arms of the government can impact you them, either positively or negatively.

This blog has been provided in order to have the doors open to asking more questions to your financial advisor, banker and/or educating yourself, based on your needs and concerns.

Select by province.

COVID-19 reopenings: Here are all the plans by province and territory to ease coronavirus lockdowns

5 Phase Out Dates

Government’s roadmap to ease Covid-19 restrictions will be set out in 5 phases. These phases will be on 3 week review process, the current phases would commence on the following dates:

Phase 1 – 18th May
Phase 2 – 8th June
Phase 3 – 29th June
Phase 4 – 20th July
Phase 5 – 10th August

If coronavirus cases begin to increase, we will revert to the restrictions set out in the previous stage.

🔮 PHASE 1 🔮

Phase 1 of the roadmap will lift the following restrictions:

🔸 Construction workers, landscape gardeners and other outdoor workers may return to work

🔸 Garden centres, repair shops and hardware stores may reopen

🔸 Fitness & sport activities (non-contact) in small groups (max of 4 people) may resume (golf included)

🔸  People may meet up with friends and family in small groups outdoors (size of a “small group” is defined as up to 4 people)

🔸 The majority of regular health services will resume 

🔸 Outdoor public amenities and tourism sites may reopen (beaches & mountain walks)

*NOTE – social distancing guidelines will remain in operation for all

🔮 PHASE 2 🔮

Phase 2 of the roadmap will lift the following restrictions:

🔸 Restriction will be extended from 5km to 20km

🔸 Specific retail hours will be allocated for those currently cocooning

🔸 Home visits will be allowed to those cocooning, by a small number of persons for a short period of time

🔸 Up to 4 people may visit another household for a short period of time

🔸 Slightly larger family gatherings at funerals will be permitted (limited to maximum safe social distancing can still be applied)

🔸 Solitary workers and workers that can maintain social distancing can return to work

🔸 Small retail outlets that can control staff and customer numbers and maintain social distancing may reopen

🔸 Public libraries will reopen

🔸 Outdoor sporting activities, involving small group training (no matches) can recommenced (no contact still allowed)

🔮 PHASE 3 🔮

Phase 3 of the roadmap will lift the following restrictions:

🔸 Commence opening of creches and pre-schools for children of essential workers

🔸 Commence a phased approach to visiting at hospitals and other healthcare settings

🔸 Businesses where employees have low levels of daily interaction may reopen

🔸 Phase in the opening of all other non-essential retail outlets, restricting customer numbers and applying social distancing (limited to retail outlets with street level entrance and exit, i.e. not in shopping centres)

🔸 Playgrounds will be reopened

🔸 ‘Behind closed doors’ sporting events may recommence

🔸 Cafes and restaurants may reopen as long as social distancing is maintained

🔮 PHASE 4 🔮

Phase 4 of the roadmap will lift the following restrictions:

🔸 Travel will be extended to outside of your region

🔸 Larger household visits will be permitted

🔸 Small social gatherings will be permitted (baptisms, small weddings etc.)

🔸 Creches and pre-schools will reopen for all other children

🔸 Other employees return to work – beginning with those who cannot work remotely and then staggering the working times to ensure social distancing 

🔸 Barbers and hairdressers may reopen

🔸 Museums and other cultural outlets may reopen

🔸 Sports teams (GAA & soccer) may recommence and public swimming pools may reopen

🔸 Hotels and other hospitality units may reopen based on limited occupancy. Hotel bars are to remain closed.

🔮 PHASE 5 🔮

Phase 5 of the roadmap will lift the following restrictions:

🔸 Social gatherings will be permitted except for large gathering and gatherings in households of suspect cases

🔸 Schools and colleges will reopen on a phased basis and will recommence in the new academic year 

🔸 Normal hospital and other residential setting visits will be allowed

🔸 All employees may return to work on normal onsite arrangements, except organisations that cannot maintain social distancing plans

🔸 Enclosed shopping centres may reopen

🔸 Tattoo and piercing parlors may reopen

🔸 Cinemas may reopen

🔸 Close contact physical sports may recommence (rugby, boxing etc.)

🔸 Gyms and dance studios may reopen

🔸 Mass sporting events may recommence where social distancing can be maintained

🔸 Indoor recreational venues may reopen (bowling, bingo etc.)

🔸Small festivals and other outdoor cultural events may resume

🔸 Tourist travel to offshore islands may resume.

The Canada Emergency Commercial Rent Assistance Program

I’m not sure if I read this correctly but if you look at the RENT FORGIVENESS section of the link below, you will see why many landlords are not opting to apply for the 75% Rent Forgiveness to help there commercial tenants.

Let me spell it out as I read it. To qualify and be eligible for CECRA (Rent Forgiveness), you need to have a mortgage loan secured by a commercial property. It has many other stipulations that could make you un-qualify and you need to enter into a well written agreement with your tenant, ensuring you have all the terms and conditions noted. It is very important to find out what these specifics are prior to entering into this Rent Forgiveness. (the link below will provide more information).

One major concern and what I am thinking if I understand it correctly is as follow:

Scenario: If I have a mortgage on a commercial property and I qualify meeting all the stipulations which will be difficult to meet in of it self, the calculations are below.

If my mortgage is $1500 and my tenant pays me $2700, I will not get 50% of the $2700 but 50% of the $1500 (my mortgage/cost). This equals to $750.

The way it looks like it has been positioned is 25% the tenant, 25% the landlord and 50% government assistance.

However this doesn’t seem to be the case based on my calculations below:
Tenant Pays 25% = $675 (25% of $2700)
Government Assist = $750 (50% of Mortgage payment)
Landlord Difference = $1275 ($2700 – $675 – $750)
(Looks like as a landlord it will cost us 47.25% almost 50% of our rental income.)
Based on this, the Landlord will be absorbing and losing 47.25% of the rental income. (See link below for details)

http://www.mondaq.com/canada/landlord-tenant–leases/930802/rent-relief-update–the-canada-emergency-commercial-rent-assistance-program

These five items in your kitchen could be sabotaging your ability to manage your weight and may be dangerous to your health.

I received this email and was giving a quick simple list. below are the excerpts. We all use these in our kitchens. Check them out:

1) Cookware. Are you using pots and pans with the nonstick coating? If so, you are subjecting yourself to what’s called persistent organic pollutants. These chemicals are not only tough on your body, but they are also hard to eliminate once they’re in your system. And because they get stuck in your body fat, they can cause you to gain weight. Just take a look at the recent documentary: The Devil We Know which showcases the decades-long Teflon chemical scandal and cover-up. Stick to stainless steel, cast-iron, ceramic and porcelain for your cookware and always avoid non-stick chemical coatings.

2) Tupperware. While it is convenient to throw your leftovers into Tupperware, it’s not the healthiest. Most Tupperware is made with the industrial chemical BPA. BPA is a known gut disruptor that research has shown can seep into your stored food. You already know how important it is to keep your gut happy in order to maintain your weight. I suggest using glass containers instead.

3) Dish Soap. Take a close look at the soap you are using at home. If it’s got the antibacterial ingredient triclosan, then it could be making you fat. According to a 2013 study published by Stanford University, people with higher levels of triclosan in their urine were more likely to have a higher body mass index. This is probably because antibacterial products destroy the good bacteria in your gut.

4) Microwave. This is another modern-day amenity that is causing us harm. Microwave ovens expose you to electromagnetic fields that scientists in China have reported can lead to fatigue and depression. These are two big hurdles if you’re trying to lose weight. On top of that, some researchers believe heating food in the microwave reduces its nutritional value. It may not be as quick and convenient, but using your stove could help you shed some pounds.

5) Tap Water. I hate to tell you this, but that water coming out of your kitchen sink is probably full of chemicals and toxins that will feed the bad bacteria in your gut. Tap water is also known to contain heavy metals like lead and it is chlorinated in order to eliminate dangerous bacteria, viruses, and parasites. To be sure you’re not introducing any of these gut disruptors into your body, make sure to filter your water before drinking.

Yours in Good Health, Dr. Vincent Pedre