So, the application for CEWS (The Canada Emergency Wage Subsidy) will be opened on Monday, the question is do you really want to apply? Rather, maybe the question is: is it worthwhile for you to apply?
The reason why I am asking that is because we can see that the situation is not changing any time soon... If your income is not sustainable to start with, to carry forward with your business, what does the wage subsidy do for you? How can the program help you as a business?
The level of impact is something a lot of us have never witnessed; even by the most optimistic forecasts, the start of recovery is still months away and we should expect a very slow return to normalcy.
If your company’s revenues had declined a lot due to this pandemic, and you had already taken necessary measures to cut cost, I advise you establish new revenue sources and make further necessary cost reductions.
I cannot state here what you can do to establish new revenue sources as all businesses are unique, I do however, work with a lot of different kinds of companies in different sectors as well as start ups, if you like, you can connect with us and we might be able to do some brainstorming on what you can do.
Certain costs like non-essential travel and entertainment or social activity expenses, I believe, had already been cut, so excess office space is the next in line, especially when you know you don’t have staffs to work in those spaces.
If your senior staff or executives can afford a pay cut, that should always be explored first. Then, as much as we don’t want to, ask all employees earning over a certain amount to take unpaid leave (that could probably help them to qualify for CERB).
We all understand that the wage subsidy is to prevent job loss, however, you need to carefully examine where the scheme is actually a good option for your company, and for Canada as a whole.
I do not think this is a program designed to alleviate any companies which already have issues that have been exposed by, and will outlive, this crisis. The subsidy would only delay your difficult decisions, resulting in deeper cuts down the road. Not to mention, the Canadian economy will have to bear that with you. WE ARE ALL IN IT. We are all going to pay a lot more tax and our children will have harder lives than it already is. As a Canadian, we must collectively make tough decisions and take decisive actions now, that will leave us best prepared for recovery and continued transformation.
Is taking the 75% wage subsidy going to be able to get your company back in shape once the pandemic is over? If you have difficulties already to pay your rent, how would that 75% wage subsidy going to help you? Maybe close up shop for good for now and get onto CERB a better way to go? Maybe when this is over we can all start new businesses together? Again, these are VERY TOUGH decisions but bear in mind, you are not alone. As Canadians, we should always stand together and storm the weather together. Please do not apply for CEWS simiply because it is available and your company qualifies for it.
We hope to hear from you if you need some help to do some analysis. Reach out for help. Reach out to anyone that can help you think more clearly. Good luck and please stay healthy. There is always hope.
Lean on us in YOUR time of need... https://t.co/A7q9ApkAN8 DMs are welcome too. #stayhealthy #coronavirus #covid19 #finance #stress #financialawareness pic.twitter.com/1zpB0oKmOP