I’m sure this comes as no surprise to anyone reading this that, at least as of the date of this blog, we have a COVID-19 pandemic and both the Federal and Provincial Governments have taken measures to try and “flatten the curve”. Unfortunately this measure means that non-essential business operations have seen their bottom line significantly impacted. A lot of businesses will face insolvency as a result.
Is there any support?
The Federal Government has already taken measures to support consumers through the CERB and has encouraged lenders, including mortgage lenders, to provide relief to consumers, which has happened, to an extent. But what about small businesses?
Support for Small Businesses
There are various programs that have either been rolled out already, being considered or having the pre-qualification requirements adjusted (post roll-out). In addition to the various programs, the Federal Government is considering a rent/lease subsidy to help lessen the impact on cash flow.
When The Support is Too Late or Not Enough
Perhaps government bail outs or moratoriums provided by your creditors or landlord isn’t enough but you have an otherwise viable business, what else can you do?
There are a couple of strategies, depending on the structure of your business, that may provide an opportunity for you to continue with your business dreams while getting a fresh start and relief from your creditors. If you find yourself in this situation thanks to COVID-19, give us a call. We will provide the advice you need at no charge. You can reach us at 519-601-9793.
Information about preferential payments and whether you should pay creditors before filing for bankruptcy.
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