Week 3: Business Community Weekly Roundtable on ... - Futures



Week 3: Business Community Weekly Roundtable on COVID-19MinutesWednesday, April 1st Business Community Weekly Roundtable on COVID-19. There were 86 attendees.WelcomeAndrea Wilkey, Executive Director, Community Futures Central KootenayNote: video conference protocol (if you aren't speaking, mute mics, turn off video cameras, type questions in the comment box)?Hear from the ExpertsTyler Rice CPA, CA, MPAcc, Rice&CoCOVID-19 Impact Discussion [slides]. Disclaimer: "Information presented was based on details available at the close of business on March 31, 2020, readers are advised that additional information was provided by the Minister of Finance, Bill Morneau on April 1, 2020 and more details will be available in the coming days and weeks"EMPLOYEES & SELF-EMPLOYED INDIVIDUALS OUT OF WORKApplications for the Canadian Emergency Response Benefit (CERB) open April 6. In order to apply, you must have a CRA MyAccount.Those who are eligible for EI can opt for EI and then switch to CERB when their benefits run out. Or vice versa. They cannot do both at the same time.BUSINESS OWNERS – WAGE SUBSIDYThe 75% wage subsidy replaces the previously announced 10% wage subsidy that would have been reimbursed by reduction in remittances. *It is designed to help businesses retain employees and avoid layoffs. Subsidy covers up to 75% of employees’ salaries ($58,700 salary cap) for up to three months. It can be backdated to March 15, 2020. Eligible businesses must have a 30% (or more) decrease in sales due to COVID-19. Maximum subsidy will provide $847 per week.Federal Government will make further announcements on this today (April 1). What we still don’t know: comparison for sales decrease; if it’s sliding scale for those less impacted; if all employees are eligible; or how/ when payments will be received. *(*Note – this point was clarified through information that came out after this call. Businesses can access both the 10% wage subsidy as well as the 75% subsidy as they are different programs. The 10% – is an immediate savings by applying the 10% gross wage reduction to the income tax portion of the next CRA remittance that is due. Effective on wages paid from March 18th and for a three-month period. Sole proprietors or Partnership businesses have been added to the list of businesses that are eligible. **There has also been clarification that the comparison for most businesses will be March 2019 vs. March 2020, etc. There is ongoing discussion about using different comparisons for some business models, I.e., new businesses, non-profits, etc., but nothing definitive to date.)QUESTIONSAs a sole proprietorship, I usually file as an Individual. I also collect and pay GST with my CRA MyBusiness account. Should I apply under Individual or MyBusiness? Apply using both, it’s the same system. MyBusiness has the same login, is where you access your GST.Are owners of one-person corporations eligible for the wage subsidy? They are eligible for CERB, on the assumption they’ve stopped working or are working but with no income. Still waiting for details. What about businesses that may not see revenue for a couple months such as farmers? At this point, we’re not sure if it’s month to month or year to year. Or how seasonal businesses fit into that. How do we prove that we have lost 30% or more income to qualify?Ryan Hoult, Rice& Co: likely the owner or executive will make a sworn statement that the business has had the loss. The government will likely review retroactively (looking at income down the road). Do employees who are still working qualify for the 75% wage subsidy or do they have to be laid off?If there is an owner and an employee in a company and they have some work and the owner gives all the work to the employee to retain them does that make the employer out of luck for these initiatives?By “wages actually paid” are you referring to gross or net of the employee’s paycheque?Barb Williams, Basin Business Advisor: it would be gross wage not munity Futures Business Loans ProgramAndrea Wilkey: the Community Futures Central Kootenay (CFCK) Business Loans program is working with existing clients, offering three months of interest only payments. We are also putting together an emergency loan fund for loans up to $20k, 5% fixed interest, for 12 months. CFCK is waiting to hear more from the federal government about CEBA to make sure our program complements theirs.DEFERRAL OF TAX FILING AND PAYMENTS [see slides for Table]WHAT BUSINESS OWNERS SHOULD BE THINKING ABOUT [video & slides]International travel restrictions could be a lot longer. Businesses should consider pivoting to focus on the local market. Domestic travel will relax before international. Social distancing may become the new normal until herd immunity and a vaccine are in place. Businesses should look long-term. Canadian dollar has fallen which will help with export, but bad for import. Low-volume, boutique style, a la carte tourism. Keep an eye on inflation. Re-evaluate supply chain. Research what others are doing in other countries. Budgeting is crucial/ cash flow is king. Demonstrate strong leadership, beacon to employees. QUESTIONSDo you have any advice on quoting jobs at this time? For example, disclaimers due to volatility of the Canadian dollar and timeline?If you can quote jobs, you’ll want to include caveats such as commodity price changes; delivery conditions; etc.Ryan Hoult, CPA, CA, ICD.D, Rice&Co, ryan@ [end of call] Information gleaned from Minister of Finance, Bill Morneau’s announcement which take place at the same time as the Roundtable call:Canada Emergency Wage subsidy: applies at a rate of 75% of the first $58,700 normally earned by employees representing a benefit of $847 per week. Need to show that your business had a 30% drop in revenue. Default comparison is revenue year over year. Apply now for the March grant (compare March 2020 to March 2019). Apply after April 30 for the April grant. There are alternatives for businesses where that’s not appropriate such as seasonal businesses. Details to follow later. Pre-revenue companies such as start-ups are not necessarily companies that they want to fund. Applicable to all types of employers except for the public sector entities such as a cities or public schools. For non-profit organizations and registered charities, they are looking for a definition of revenue that is appropriate for the circumstance. Additional support for non-profit and charities are coming. The wage subsidy is based on wages actually paid to employees. Employer to make “best effort” to top people up to regular wages. Will have to vouch that they are doing everything possible to pay remaining 25% of wages.Application will open “in the near future”. It’s going to be at least two weeks out from the application time. The federal government is trying to get the employee version running before they switch to this. The first funds will be received in six weeks. Business owners would apply May 1 for April and get funds 2-4 weeks after that. It could be faster if they can get direct deposit set up. The 10% wage subsidy is still available to companies that don’t qualify for the75% wage subsidy. If an employee is being paid with the 75%, wage subsidy, they can’t apply for other benefits. The $2000 CERB is limited to people whose income is zero. QUESTIONSHow will I be notified?Sign up through MyBusiness online with message system to receive notification. Expect to be notified by that system. How will this apply to a company that pays worker owner with a wage bonus?As described today, nothing suggests that those companies wouldn’t qualify. It is expected that when we see the regulations, they will tie that down a bit.Will new hires be eligible for the temporary wage subsidy?This announcement didn’t address new hires. Lisa McGeady, KCDS/ WorkBC: there are wage subsidies for "new" employees through Work BC. It would cover 50% of a new employee's wage for up to six months. If you are interested in more information, please contact me at lisa.mcgeady@kcds.ca. If I have corporation, do I apply for the CERB for myself through my personal or business portal in CRA website? Apply for CERB through the CRA personal portal. Apply for the Wage Subsidy through the CRA business portal. Any distinction on wage subsidy for sole proprietor vs. corporation? The original 10% wage subsidy was not available for sole proprietorships. The 75% wage subsidy is open to everyone except public sector employers.Jody Montpellier, Business Account Manager - Business Financial Services, RBC Royal BankStill waiting for a lot of information on the Canada Emergency Business Account. The Canadian Banking Association wants to launch and roll out the criteria at the same time. RBC are ready to go quick, but some are three weeks out. Wants to get the cash into people's hands sooner than later.Business owners must apply at the bank where they do their business banking (as of March 2, 2020). If you have multiple accounts, you can choose which bank to work with. It will be based on the honour system; there will be checks and balances later. Likely an online application. Within three hours of the announcement of this program, there were scam emails and texts that started showing up with links to apply for it. Currently, there’s no way to apply for the Canada Emergency Business Account. QUESTIONSAre credit unions included in CEBA? Tom Atkins: CU team is researching that. The NDCU encourages members to reach out. NDCU will share what they know. How can employers get the most for their employees? Is it better to lay them off so they get EI? What’s better, EI or CERB? Or should I keep them on staff with the 75% temporary wage subsidy?It comes down to the business. For businesses that can bring back employees with the 75% wage subsidy, that is an advised course of action if it meets budgetary needs. This should provide the maximum benefit to your employees. What should I do if I don’t have work for my employees or my employee prefers EI?The new wage subsidy is intended to allow businesses to retain employees/ reduce social burden. Is there a minimum number of hours employees are supposed to work? The intention with the wage subsidy is to allow businesses to retain employees so that the business can start back up.Can my employee apply for CERB? Short answer: if your employee is not working because of COVID-19, then they are eligible. More information on specific criteria available here: From: I import from the US, do I need to pay duty? Duty is still required, but payments can be deferred until June 30, 2020. Import GST needs to be reported but doesn’t have to be remitted until June 30, 2020.Training OpportunitiesSelling Online, April 9 This class is for people need to learn how to sell their products online. It covers packaging, shipping methods, payment methods, customer support, regulations, and legalities. Also reviews different types of marketplaces (e.g. Amazon), online craft fairs (e.g. Etsy), social networks (e.g. Facebook), and an online storefront. This class introduces you to several trusted online services and tools including PayPal integration, WordPress for Artisans, Wufoo forms, Etsy, Wix, Volution, Squarespace, and Shopify.Blog Like You Mean Business, April 15Blogging is an important part of online business, raising awareness of products and services, building email lists, and turning fans and followers into paying customers and clients. Creating great content means knowing the pains and desires of your ideal customer/ client.Along with the fundamentals blogging, you’ll develop a list of blog topics unique to your business. Learn about headlines that work, keywords/ search engine optimization (SEO), how to use images, calls to action, how and where to post your blogs (other than just your website), and other productivity tips and tricks.DIY Filmmaking for Social Media, April 28This workshop focuses on making a short video (30-60 seconds) using an iPhone or a DSLR camera. We will look at simple tools to make the most of natural lights, how to maximize your location, quick easy edits, and finally integrating it into social media sites, YouTube, and your website.Business OpportunitiesNelson Helps Facebook group:?Meals for our frontline health care workers GoFundMe. Opportunity for local restaurants to get involvedBC Chamber of Commerce: Pulse Check survey [closed April 1st at 5pm]RoundtableCASTLEGAR Andrea Ryman, Destination Castlegar; smaller motels/ Airbnbs are closing. Flexibility from accommodation sector, using specialized cleaning. Lots of layoffs. Some restaurants are getting creative with pick-up/ delivery. Others have closed. Tammy Verigin-Burke, Executive Director, Castlegar & District Chamber of Commerce: is open to all businesses in Castlegar and area. Get in touch by phone or email.QUESTIONSAs a landlord of a rental property, what should I do if my tenants don’t pay their rent? I’m not going to evict, but I have a mortgage, property taxes, etc. to pay. Michael Hoher: & West Kootenay Landlord Society.Wade Sather: most banks have mortgage deferral optionsMichael Gordon: Keep an eye out for when BC Housing releases their rent subsidy program (coming hopefully in the next week or so). It will allow tenants to apply for a rent subsidy of $500 paid directly to landlords. I own a couple rentals and am waiting for that to show up so I can send it to my tenants in case they need assistance in the coming months.Barb Williams, Basin Business Advisor: there is a lot of lobbying to both levels of government right now on the issue of commercial rents. The provincial government has announced supports to residential renters. Commercial rent controls do not exist and are not under provincial or federal jurisdictions. I think there will be more information coming.Michael Hoher: Also verify if or how it affects your credit rating which would impact future lending abilities.Was anyone able to get a mortgage deferral on a rental property?The bank of Canada prime rate is now .25%. Will public banks pass this on, particularly to mortgages?Could we get more information on what’s happening with business insurance right now?Michelle Rudell, Nelson Olive Oil Company. I moved my business online with delivery service going to Nelson, Castlegar, Trail, Rossland, and Salmo. Started offering delivery on the North Shore of Kootenay Lake as well. Had 25 deliveries this week. 10% of profits went to the Nelson Community Food Centre. Connecting with clients via Facebook/ website/ Instagram. Almost every sale is coming from Facebook. Delivery method: self-isolate, ring doorbell with elbow, stand back two meters. QUESTIONSWhat are the risks for food delivery/ deliveries in general for spreading the virus? Tanya Finley, Finley’s Bar and Grill/ Nelson & District Chamber of Commerce: Three pager: Finley’s Bar & Grill: Extra Measures for Health & Safety during COVID-19.What are the chances that the government will shut-down deliveries at some point?Tanya Finley, Finley’s Bar and Grill/ Nelson & District Chamber of Commerce president: reading the book, Feather Bone about adapting. Businesses need to think outside the box. Dianna Ducs, Executive Director, Nelson Kootenay Lake Tourism: Finding Awesome… Within. Destination BC is leading with an “Explore BC… Later” campaign. Internally, NKL Tourism is focusing on the businesses that are here and whether they are open or not. Communicating with people both within and outside the community about what’s going on in the region. The story was picked up by CBC radio and CBC’s The National. Talking to business owners. Campaign of how-to videos. Liz Babcock: sole proprietor, Thai Massage. Had a website already that clients are familiar with. Yoga teacher as well, so trying to sort out how to do videos. Creating simple instructional videos for clients. In a competitive field like massage, it’s not always about getting clients, it’s about keeping clients. Massage business is a lot about relationship. Clients love to see her via video. The relationship is where the value is. In order to be eligible for CERB, can’t be making any money. Making short videos just to gain interest. Has a YouTube channel, website, and Thai massage courses. Hoping to create a bridge between yoga and Thai massage. Looking into KAST’s one-on-one tech support for taking business to online platform. Please note BBA can advise businesses on transitioning to online. Suggesting to other businesses: find a way to connect with clients. Could add a video to your emails so your clients can see you.Resources & Questions from Zoom Chat BoxLiz Babcock. From to apply for the Canada Emergency Response BenefitIf you were born in the month ofApply for CERB onYour best day to applyJanuary, February, or MarchMondaysApril 6April, May, or JuneTuesdaysApril 7July, August, or SeptemberWednesdaysApril 8October, November, or DecemberThursdaysApril 9Any monthFridays, Saturdays & SundaysMichael Hoher, Export Advisor for Kootenay Boundary: for those interested in export contact me for free export assistance available through the provincially-funded Export Navigator Program. Tom Thomson, Executive Director, Nelson and District Chamber of Commerce: The BC Chamber Mindreader Survey is open until 5pm tonight (April 1) and will then be reported tomorrow to Premier John Horgan and Finance Minister Carole James. It was important previously in shaping government programs. Dianna Ducs, Executive Director, Nelson Kootenay Lake Tourism We are aggregating as much business listing info as we can on newsQUESTIONSAre there services or individuals providing help for small business who can help Nakusp businesses navigate all this information? I suspect a lot of people would benefit from having someone help them phone to phone rather than going through lists and websites. So many different scenarios Barb Williams, Basin Business Advisors: all Nakusp businesses (and all businesses in the Columbia Basin) can email Alison Bjorkman (abjorkman@bbaporgram.ca) to be connected to a Basin Business Advisor, for free. That person will be able to help the business owner with their specific questions and needs. Will this call be available to watch again or send to someone else?Currently, the calls are not being recorded. Participants are welcome to invite people who will find this information useful. Each week, the Minutes are sent out after the call. To be included in these emails, email amacdonald@futures.bc.ca.Are you able to send out an Outlook meeting notice link (ics file)?You can download the ics file to add it to your calendar. Download Outlook Calendar meeting inviteMeetings are held every Wednesday from 11:00 AM to 12:00 PM, until the end of April with the possibility of extending, if necessary. Action Items:Spread the word to your network that there are email and text scams concerning the Canadian Emergency Business Account (CEBA). NKL Tourism: gathering information about Nelson businesses (who’s open/ closed).For any business in the Columbia Basin who wants to go over the specifics of their situation, they should get in touch with the Basin Business Advisors by emailing Alison Bjorkman at abjorkman@bbaprogram.ca If you are applying for the Canadian Emergency Response Benefit (CERB) take note of the table provided above and be sure to apply on the correct day. Tanya Finley from Finley’s Bar and Grill shared her 3-pager that Finley’s is using to ensure health and safety of their workers while providing delivery services. Finley’s Bar & Grill: Extra Measures for Health & Safety during COVID-19.Tyler Rice provided the COVID-19 Impact Discussion slides with the disclaimer that the "information presented was based on details available at the close of business on March 31, 2020, readers are advised that additional information was provided by the Minister of Finance, Bill Morneau on April 1, 2020 and more details will be available in the coming days and weeks" ................
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