The federal government has introduced the Business Credit Availability Program (BCAP) to help Canadian businesses financially during the COVID-19 crisis.

Through this program, Export Development Canada (EDC) and Business Development Bank of Canada (BDC) will provide $65 billion in direct lending and financial support to Canadian business across all sectors.

BCAP encompasses the following programs in support of Canadian business:

EDC Business Credit Availability Program (BCAP) Guarantee

EDC BCAP Guarantee Questions & Answers

What is the EDC Business Credit Availability Program (BCAP) Guarantee?

The EDC BCAP Guarantee is a business loan to help small and medium-sized Canadian businesses impacted by COVID-19. Eligible applicants can access operating loans or term loans of up to $6.25 million CAD to cover operational expenses such as rent and payroll. It cannot be used for dividend payouts, shareholder loans, bonuses, stock buyback, option issuance, increases to executive compensation or repayment/refinancing of other debt.

The EDC BCAP Guarantee features:

  • Fixed 80% EDC guarantee for up to 5 years;
  • EDC guarantee fee of 1.8% calculated on loan amount;
  • 6-month EDC guarantee fee payment deferral; and
  • Applicant deals directly with their financial institution and not EDC.

I have an existing EDC loan facility. Can I use the EDC BCAP Guarantee to top up my existing facility?

No. The EDC BCAP Guarantee can only be used to support new facilities to provide incremental emergency liquidity. It cannot be used to support an existing facility.

Is the EDC BCAP Guarantee only available to export-oriented businesses?

No. The EDC BCAP Guarantee is available to all small and medium-sized Canadian businesses in all sectors that were financially viable and revenue generating prior to the COVID-19 outbreak.

How do I apply?

To apply for the EDC BCAP Guarantee please contact your Business or Commercial Account Manager directly. Alternatively, you can contact commercialmanagers@wfcu.ca.

 

BDC Co-Lending Program

BDC Co-Lending Program Questions & Answers

What is the BDC Co-Lending Program?

The Government of Canada announced the availability of the Business Development of Canada (BDC) Co-Lending program supporting Canadian businesses of all sizes that have been negatively impacted by COVID-19. Eligible applicants can access up to $6.25 million CAD (max. loan amounts dependent on business size) in loans to cover operating expenses such as rent and payroll, and working capital needs such as inventory. The loan will be jointly funded by WFCU Credit Union and BDC. The Co-Lending Program is separate and distinct from the Canada Emergency Business Account, a $40,000 interest-free loan.

Businesses with the following 2019 revenue thresholds can apply for the following loan amounts:

  • Loans of up to $312,500 to businesses with revenues of less than $1 million.
  • Up to $3.125 million for businesses with revenues between $1 million and $50 million.
  • Up to $6.25 million for businesses with revenues in excess of $50 million.

Who can apply for the loan?

WFCU Credit Union business members of all sizes that have been impacted by COVID-19 and meet the eligibility criteria can apply for the BDC Co-Lending Program.

What are the eligibility criteria?

Businesses are eligible to apply if:

  • they are a Canadian-based commercial entity with the intent to generate revenue from the sale of goods or services and that has business operations in Canada;
  • WFCU Credit Union is their primary financial institution and has been a member of WFCU Credit Union as of March 1, 2020
  • they have not benefited from, or are in the process of benefiting from, this Co-Lending program at another bank or financial institution
  • they have been negatively impacted by COVID-19.
  • been a viable business as of March 1, 2020 prior to COVID-19 impact
  • met the necessary requirements that will form part of the application process

For more details on the program, eligibility and application process, contact the WFCU Commercial team at commercialmanagers@wfcu.ca.

Businesses are not eligible to apply for this program if they:

  • are a government organization or body (other than an Indigenous entity or body) that owns 25% or more of the equity interests;
  • are a union or charitable, religious or fraternal organization or an entity in which any such organization owns 25% or more of the equity interests;
  • are an entity in which 25% or more of the equity interests are held by any single current member of the Parliament of Canada or any single current member of the Senate of Canada, other than a publicly traded company; or
  • promote violence, incite hatred or discriminate on the basis of race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.

As part of the application process, you will be asked to provide:

  • information for co-signatories and guarantors;
  • personal income and business income;
  • other financial details, including your mortgage or monthly rent amount;
  • financial statements for the business for 2018 and 2019;
  • T1 General (4-page jacket) and Notice of Assessment for the last two (2) years available for the co-signatories, guarantors and spouses, as applicable;
  • personal net worth documents, including investment statements, savings and account holdings at other financial institutions, and mortgage statements; and
  • personal and business contact information, including phone number and email address.

Additional information may be requested in the application process. For more details on the program, eligibility and application process, contact the WFCU Commercial team at commercialmanagers@wfcu.ca.

What are the terms of the BDC Co-Lending Program?

  • Term loan
  • Interest-only payments for the first 12 months
  • Amortization and terms based on your business needs

For more details on the program, eligibility and application process, contact the WFCU Commercial team at commercialmanagers@wfcu.ca.

How do I apply?

WFCU Credit Union members contact their Commercial Manager to learn more about the application process and eligibility criteria. For more details on the program, eligibility and application process, contact the WFCU Commercial team at commercialmanagers@wfcu.ca.

Can I apply for this loan if I am currently receiving CEBA and/or the EDC BCAP Guarantee?

Members that have applied for the CEBA program and/or the EDC BCAP Program may also apply for the BDC Co-Lending Program.  WFCU Commercial Services team can help you determine which solutions are suited for your financial needs.

How will I find out if I am approved for the BDC Co-Lending Program?

Your WFCU Credit Union Commercial Manager will work with you to complete the application process and will keep you apprised of your loan approval status.

Canada Emergency Business Account (CEBA)

NOW AVAILABLE TO WFCU BUSINESS MEMBERS!

UPDATE: On Wednesday, May 20, 2020 the Federal Government announced additional changes to the CEBA program by introducing new qualification rules for those who are self-employed. Further details will be listed on this site and the application form will be updated as soon as full details are available.

The Canada Emergency Business Account is an interest-free loan of $40,000 for qualifying businesses and organizational members that is designed to help cover operational costs for businesses experiencing temporary revenue reductions as a result of COVID-19.

The business loan features:

  • 0% interest until December 31, 2022
  • No minimum monthly interest payments required until January 1, 2023
  • No penalty for early repayments.
  • Up to 25%, or $10,000, loan forgiveness if 75%, or $30,000, of principal loan is paid in full on or before December 31, 2022.

APPLY NOW!

If there are errors loading the application, please try using Chrome, Firefox or Safari; application may not open in Internet Explorer or Edge.

CEBA Questions & Answers

Financial Relief For Businesses

What is the Canada Emergency Business Account?

On March 27, the federal government announced additional measures to support small businesses. The Canada Emergency Business Account is an interest-free loan of $40,000 for qualifying businesses and organizational members that is designed to help cover operational costs for businesses experiencing temporary revenue reductions as a result of COVID-19.
The business loan features:

  • 0% interest until December 31, 2022
  • No minimum monthly interest payments required until January 1, 2023
  • No penalty for early repayments.
  • Up to 25%, or $10,000, loan forgiveness if 75%, or $30,000, of principal loan is paid in full on or before December 31, 2022.

When will the applications for the Canada Emergency Business Account be available?

Applications for the Canada Emergency Business Account are available now to WFCU Business Members.  You can apply for the CEBA benefit through our online application. If there are errors, try using Chrome, Firefox or Safari; application may not open in Internet Explorer or Edge.

Eligibility

Who is eligible for the Canada Emergency Business Account?

WFCU Credit Union business members, including small businesses and organizations, that meet each of the following criteria will be eligible:

  • Must be a Canadian business (i.e., not a holding company) in operation on March 1, 2020.
  • Must demonstrate that you paid between $20,000 – $1.5 million in total payroll in 2019. You are required to provide
    • Employer account number, as reported at the top of the 2019 T4 Summary
    • Employment income reported in Box 14 of your 2019 T4
    • 2019 T4SUM when requested upon audit
  • Must agree to use the funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance and property tax, as per the requirements of the program set out by the Government of Canada.
  • Must be a current WFCU Credit Union business member with an active business operating account. WFCU Credit Union must be your primary financial institution and your account must have been opened prior to March 1, 2020.
  • Must apply for the Canada Emergency Business Account only from your primary financial institution. Applying for this benefit at more than one financial institution may result in prosecution by the federal government.

My business requires the consent of more than 1 Director or Officer to bind my organization. Can I still apply?

Your application requires that your organization can enter into the Canada Emergency Business Account loan agreement with the consent and authorization of only 1 signing officer. We can’t accept multiple signatures. We recommend in this case that your organization prepare and approve a resolution that allows the signing officer applying for this loan to be given the special authority to attest on behalf of, and individually, bind the organization to the terms of the loan agreement.

I run my sole proprietor business using my WFCU Credit Union personal chequing account. Can I still apply?

No. The Canada Emergency Business Account is available only to business clients with employee payrolls between $20,000 and $1.5 million in 2019. Use of a personal chequing account isn’t permitted when operating in the name of a business. The federal government has announced a number of relief measures to support individuals as sole proprietors. More information please visit the Government of Canada’s COVID-19 Economic Response Plan site.

I have an existing WFCU operating line of credit, can I enroll in the Canada Emergency Business Account?

Yes, you can still participate in the enrollment process if you are current borrower of other WFCU lending solutions.

I am currently benefiting from other WFCU COVID-19 relief offering for my business. Am I still able to participate in the Canada Emergency Business Account?

Yes. You are still able to participate in the Canada Emergency Business Account if you are receiving financial relief in response to COVID-19 through WFCU.

If I have multiple businesses can I enroll each business for the Canada Emergency Business Account?

Yes, you are able to enroll each separate business entity for the Canada Emergency Business Account. Each business must individually meet the eligibility requirements.

Enrollment Process

What information will be required when applying for the loan?

When applying for the Canada Emergency Business Account loan you will be required to provide proof of the following:

  • Registered Canadian business (i.e., not a holding company) in operation on March 1, 2020.
  • Must demonstrate that you paid between $20,000 – $1.5 million in total payroll in 2019. You are required to provide
    • Employer account number, as reported at the top of the 2019 T4 Summary
    • Employment income reported in Box 14 of your 2019 T4
    • 2019 T4SUM when requested upon audit

 

In addition, you:

  • Must agree to use the funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance and property tax, as per the requirements of the program set out by the Government of Canada.
  • Must be a current WFCU Credit Union business member with an active business operating account. WFCU Credit Union must be your primary financial institution and your account must have been opened prior to March 1, 2020.
  • Must apply for the Canada Emergency Business Account only from your primary financial institution. Applying for this benefit at more than one financial institution may result in prosecution by the federal government.

How do I apply?

You can apply for the CEBA benefit through our online application. If there are errors, try using Chrome, Firefox or Safari; application may not open in Internet Explorer or Edge.

If you have any questions or require additional information please contact your WFCU Credit Union Commercial Account Manager or our Member Contact Centre at 519.974.WFCU (9328).

I haven’t received or can’t locate my 2019 T4SUM Summary of Remuneration Paid. How do I apply?

Contact the Canada Revenue Agency to have them reissue your 2019 T4SUM Summary of Remuneration Paid.

I’m not registered for WFCU’s online banking. How do I sign up?

We recommend that our members sign up for online banking to facilitate quicker transfer of fund between accounts. To register for online banking please contact our Member Contact Centre at 519.974.3100 and a representative would be happy to assist in getting you signed up today.

I have accounts at multiple financial institutions. How do I determine where to apply?

Your business’s primary financial institution is the one where your business does its day-to-day banking, including employee payroll, supplier payments and collection of receivables. If WFCU Credit Union is not where your business conducts its day-to-day banking, apply through the financial institution that holds your primary business operating account.

What if WFCU Credit Union doesn't hold my daily operating account?

If you have products with WFCU Credit Union, but your daily operating account is with another financial institution, you must apply through that financial institution.

I just moved my daily operating account to WFCU Credit Union, do I qualify?

If your daily operating account has been with WFCU Credit Union since March 1, 2020, you can apply with WFCU Credit Union. If you opened your account after March 1, 2020, please call our Member Contact Centre at 519.974.WFCU (9328).

Loan Terms

How many days will it take for me to receive the funds?

Funds will be deposited into your account within 5 business days. If the 5 business days have passed, please call our Member Contact Centre at 519.974.WFCU (9328).

What types of fees or interest will be charged?

If deemed eligible, you will receive a $40,000 non-revolving term loan with the proceeds being deposited within approximately five business days directly into your business’s primary operating account.

No interest applies until January 1, 2023.

Commencing on January 1, 2023, interest accrues on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of each month.

If you pay 75% of the balance of the term loan (as at December 31, 2020), on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on December 31, 2020 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven.

If you do not repay 75% of the balance of the term loan (as at December 31, 2020) on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.

When am I required to start repaying the loan?

You can begin repaying your loan in part or in full at any time.

However, repayment is not required until December 31, 2025 at which time the entire loan and all accrued and unpaid interest is due.

WFCU Credit Union Business Member Support

I just found out my application wasn't approved, what are my options?

If your application was declined and you would like to discuss alternative options for your business please email our Small Business and Commercial team at CommercialReps@wfcu.ca.

More information on eligibility criteria can be found at www.CEBA-CUEC.ca.

My business requires more financial assistance than is provided through the Canada Emergency Business Account loan. Can you help?

We are committed to helping our business members navigate financially through COVID-19.

Members who are experiencing financial difficulties due to COVID-19 may be eligible for financial relief, including up to six-months payment deferral for residential mortgages and loans as well as the opportunity for relief on other credit products.

This relief is reviewed on a case by case basis. Members are encouraged to call our Member Contact Centre at 519.974.WFCU (9328).

How can I complete my business banking remotely?

WFCU Credit Union business members can access their accounts and complete their business banking using any of our live drive-thru banking, digital or telephone banking, or ATM network services.

If you have any questions please reach out to our Member Contact Centre
at 519.974.WFCU (9328) or toll-free at 1.866.500.WFCU (9328).