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COVID-19 Federal Benefits And Supports – Relief From Bank Loans

COVID-19 Federal Benefits and Supports – Relief from Bank Loans

COVID-19 Federal Benefits and Supports

Relief from Bank Loans

By Nizam Shajani, CPA, CA, MBA

Business closures and the quarantined public due to COVID-19 will result in cash flow concerns for a large number of businesses.  The government has encouraged banks, and most banks seem to oblige with payment arraignments during this difficult time.

Many businesses are going to be faced with a significant decrease or no revenues in the coming weeks and months.  This will put a dire cash flow strain on the business.  Corporations have initiated mass layoffs as a way to mitigate costs.  The other major costs form most businesses are rents and loan payments.

Banks understand these are difficult times and the unsettling prospects many businesses are facing.  Most of these institutions have introduced financial relief programs for those impacted by COVID-19 for their small business customers.

Here is what we found as their initial relief measures.

BMO

BMO has introduced a financial relief program for those impacted by COVID-19. We have flexible financial relief options available to our personal and small business banking customers. To help you with immediate relief, we offer up to a 6-month payment deferral on mortgages, loans, credit cards, and lines of credit with no fee (your payment will be deferred but interest will continue to accrue) and no changes to the terms of your BMO account.

CIBC

CIBC will work with clients on a case-by-case basis to provide flexible solutions to help manage these challenges, including up to a 6-month payment deferral for mortgages and the opportunity for relief on other credit products.

Scotia Bank

Scotia Bank is committed to trying to work with all their customers on a case-by-case basis, including offering payment deferrals for mortgages and relief on credit products for those who qualify.  If you, or any member of your family, has become unemployed or experiences a material reduction in income due to COVID-19 you may be eligible to qualify for relief measures until September 13, 2020.

Royal Bank

Royal Bank is assessing the needs of business owners who have been affected by COVID-19 on a case-by-case basis to provide relief solutions that are tailored to their circumstances. Relief support may include business loan payment deferrals; increases to operating line of credit limits; waiving of credit card minimum payments; and waived fees for new enrollments to cash management solutions.

TD Bank

TD bank has noted if you’ve been affected by COVID-19, reach out to see how we can support you. They may be able to provide some financial relief that can help.

ATB

ATB is willing to help business that have been interrupted in any way as a result of COVID-19.  In addition to payment deferrals on loans and lines of credit, ATB may also provide access to additional working capital.

It should also be noted that all of these banks seem willing to provide deferrals on personal mortgage payments.  This may provide some relief where business owners are no longer able to earn what they were able to prior to this crisis.

While relief measures differ from one bank to another, if you anticipate cash flow concerns over the coming months, talk to your banking representative to see what they can do for you.  Note that interest will continue to accrue on these loans, however the deferral of the payment will help alleviate cash flow concerns in the near term.

 

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2020 Shajani LLP