What Is the Smith Maneuver?  How Can You Maximize Your Dollar? 

KEY TAKEAWAYS

Check it out.  You have to see this!

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