COVID19 Update to Business Members

If you are a NLCU business member in need of emergency support due to the impact of COVID-19, we are here to support you.

If you have any concerns, contact our Member Solutions Centre at 1-800-563-3300 from Monday to Friday, 9:00 a.m. to 8:30 p.m. NST (8:30 a.m. to 8:00 p.m. in most of Labrador) so we can arrange for you to speak with one of our Commercial Advisors.

NLCU is committed to work with members individually to provide flexible solutions suitable to their needs.

For NLCU's general COVID-19 update to members, visit here

You can visit the Government of Canada’s COVID-19 Economic Response Plan to view all federal programs.

Frequently Asked Questions 

*Please note, the updates included in this FAQ are subject to change as new information becomes available.

Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee Expand/Collapse

Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee

Some businesses, such as those in tourism and hospitality, have been more heavily impacted as a result of COIVD-19 and are struggling more than others to access financing.

Such businesses can access guaranteed, low-interest loans of $25,000 to $1 million to cover operational cash flow needs. These loans are for small and medium-sized businesses that have seen their revenues decrease by 50% or more as a result of COVID-19.

This program is available to Canadian businesses from all sectors that meet the HASCAP Guarantee eligibility criteria.

The HASCAP Guarantee deadline has been extended to December 31, 2021.

Who is eligible for the HASCAP Guarantee?

Eligibility for this program is based on criteria established by the Government of Canada.

Neither BDC nor NLCU has the authority to grant exceptions to eligibility criteria.

  • Your business must be Canadian based.
  • Your business must have been financially stable and viable prior to the current economic situation and have been in operation as of March 1, 2020.
  • Your business must have received payments either from the Canada Emergency Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by having demonstrated a minimum 50% revenue decline for at least 3 months (not necessarily consecutive) within the 8-month period prior to the date of the HASCAP Guarantee application.
  • If your business does not qualify for CEWS or CERS, but otherwise meets all HASCAP eligibility criteria, you must provide financial statements that reflect at least 3 months (not necessarily consecutive) in which monthly year-over-year revenue decreased by at least 50% within the 8-month period prior to the date of the HASCAP Guarantee application.
  • The loan will be used to continue or resume operations.
  • The loan cannot be used to pay or refinance existing debts.
  • Minimum risk ratings will apply, varying by size of new loan.
  • You can apply for a loan under the HASCAP Guarantee for each legal entity you own, up to a maximum combined amount of $6.25 million (all legal entities combined).
  • Other conditions may also apply.
How can I apply?

Please call our Member Solutions Centre, Monday to Friday, 9 a.m. to 5 p.m. NST, reach out to your Commercial Business Advisor, or email@nlcu.com for information on how to apply.

The pre-financing eligibility criteria validation is based on the criteria established by the Government of Canada. No organization involved in administering the HASCAP Guarantee, including NLCU, has the authority to grant exceptions.

Which sectors are considered highly affected?

This program is available to Canadian businesses from all sectors that meet the HASCAP Guarantee eligibility criteria.

I have received other COVID-related benefits from the federal government since March 2020. Can I still apply for this program?

Yes you may. Please call our Member Solutions Centre, Monday to Friday, 9 a.m. to 5 p.m. NST, reach out to your Commercial Business Advisor, or email@nlcu.com to confirm that you are eligible and to start the loan request process.  

What can I do to prepare my HASCAP Guarantee loan request?

If your business has received the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS):

When you apply, make sure you have your Canada Revenue Agency attestation forms demonstrating a minimum 50% revenue decline, for at least 3 months, within the 8-month period prior to the date of your HASCAP Guarantee applications.

If your business did not receive CEWS or CERS and is eligible for it:

You must apply and have received payments either from the Canada Emergency Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by having demonstrated a minimum 50% revenue decline for at least 3 months (not necessarily consecutive) within the 8-month period prior to the date of the HASCAP Guarantee application.

If your business does not qualify for CEWS and CERS:

You must provide financial statements that reflect at least 3 months (not necessarily consecutive) of monthly year-over-year revenue decrease of a minimum 50% per month, within the 8-month period prior to the date of the HASCAP Guarantee application.

Where can I find out the status of my HASCAP Guarantee applications?

Please call our Member Solutions Centre, Monday to Friday, 9 a.m. to 5 p.m. NST, reach out to your Commercial Business Advisor, or email@nlcu.com for information regarding your application.

Can I apply directly though BDC if I am already a client?

No, you must apply through your primary financial institution.

Who do I contact if I do not qualify for the HASCAP Guarantee, or if I am declined?

If you do not qualify for the HASCAP Guarantee Program, your branch manager or one of our commercial advisors will be happy to discuss other possible solutions NLCU may have to assist you.

Why do I need to complete an online form for BDC as part of the application process?

Every borrower must complete and electronically submit BDC’s Electronic Information form.

By completing this form, you provide high-level information about your business. This information will help the Government of Canada understand which businesses are seeking relief through this program.

Canada Emergency Business Account (CEBA) Loan Expand/Collapse

The CEBA Application Period Has Been Extended

Applicants now have until June 15, 2021 to apply for a $60,000 CEBA loan or the $20,000 expansion at their financial institution.

What is the Canada Emergency Business Account (CEBA) Loan?

The Canada Emergency Business Account (CEBA) provides a $60,000 loan for eligible small businesses and T2 or T3010 registered not-for-profit members. This federal program is designed to help cover operating costs for organizations experiencing temporary revenue reductions.

Features of the CEBA loan include:
  • Loan value up to $60,000, up to $20,000 of which may be forgiven;
  • 0% interest until December 31, 2022 at which time the interest rate switches to 5%;
  • No minimum monthly principal payments required until December 31, 2025;
  • Principal repayments can be made at any time.
Please note: business owners are only permitted to apply for the CEBA from their primary financial institution. Applying for this benefit at more than one financial institution may result in prosecution by the federal government.

Expenses will be subject to verification and audit by the Government of Canada.

Visit the Government of Canada’s website for full CEBA loan program and CEBA expansion details.

I was notified I need to submit additional information for my $20,000 expansion application but the process isn’t available. Why is this taking longer?

The CEBA program is actively working to finalize the processes that will allow select $20,000 expansion applicants that were previously informed to submit additional information.

Applications awaiting processes to submit additional information will have until at least the May 14, 2021 application period end date to do so.

It has taken longer than anticipated to make these processes available as they are working to ensure that as many applicants as possible are able to resolve their application errors.

Who is eligible for the CEBA loan?

You must be a current NLCU business member with an active business operating account. NLCU must be the primary financial institution.

You must have an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.

The CEBA application process follows one of two streams: the Payroll Stream or the Non-Deferrable Expense Stream. Read more on CEBA loan eligibility and criteria. Contact your NLCU Commercial Business Advisor for details.

How can I apply?

Please call our Member Solutions Centre, Monday to Friday, from 9 a.m. to 5 p.m. NST, reach out to your Commercial Business Advisor, or email@nlcu.com for information on how to apply.

Who do I contact if I do not qualify for the loan, or if I am declined?

If you do not qualify for the CEBA program, your branch manager or one of our Commercial Business Advisors will be happy to discuss other possible solutions NLCU may have to assist you.

Contact the CEBA Call Centre at 1-888-324-4201 to receive a status update on your CEBA application.

How long will it take for the funds to show up in my account?

Your application will be reviewed for eligibility and submitted to the Federal Government for funding.

You should expect to receive funding within 10-15 business days from the date of your submission. Upon approval, you’ll receive a confirmation email from NLCU with loan documentation for you to sign and return to NLCU. The $60,000 loan will be deposited into your existing NLCU business account once you have returned the loan documents to NLCU.

How can I get my 2019 T4SUM Summary of Remuneration Paid?

Contact CRA for your 2019 T4SUM Summary of Remuneration Paid.

I am a sole proprietor who uses a personal account for their business? Can I still apply?

No, you do not meet the CEBA criteria. Please refer to CEBA criteria above for more information.

What if I have multiple businesses? Can I apply for CEBA for each business?

Yes, each business that meets the eligibility criteria may apply for CEBA.

I have other loans with NLCU, can I still apply for the Canada Emergency Business Account?

Yes, you can still apply if you have others loans with NLCU that are in good standing and if your business meets the eligibility requirements for CEBA.

My business requires the consent of more than one signatory to commit to an action. Can I still apply?

Yes, but both signatures will have to sign the loan documents. Please ensure that only the authorized signer(s) of your NLCU business account applies. Only one application from the same business account will be accepted.

What will my loan payments be?

The loan is interest-free until December 31, 2022.

If you choose to extend the loan beyond this date, an interest rate of 5% will apply during the extension period.

While no principal repayments are required throughout the term, all principal must be repaid prior to December 31, 2025. As noted above, to qualify for the repayment incentive, of up to $20,000, the applicable principle amount must be paid by December 31, 2022.

Please ask your Commercial Business Advisor or branch manager for details on the repayment incentive.

SONA Expand/Collapse

SONA is here to support NLCU members through these trying and uncertain times. SONA has a tool kit with solutions that can help you and your business. Below are some of those solutions that can help your business pivot and succeed.

  • E-Gift Cards
  • Online to Instore Inventory Sync
  • Digital Contactless Payments (Apple Pay, Google Pay, NFC, RFID)
  • Payment Device Extender Arm
  • LTE Mobile Devices for Delivery and Curbside Pickup
  • Email or Text Receipts
  • Electronic Invoicing (payment link inside an invoice to pay immediately with a credit card)
  • Contactless Curbside Pick-Up
Visit www.sonapay.ca or contact your Commercial Business Advisor to learn more.

What resources are available for business members impacted by COVID-19? Expand/Collapse

The Government of Canada’s Resources for Canadian Businesses has a detailed list of ways in which Canadian businesses impacted by the COVID-19 outbreak can receive support, as well as a page outlining risk-informed decision-making guidelines for workplaces and businesses during the COVID-19 pandemic.

The Canadian Federation of Independent Business has a COVID-19 Small Business Help Centre answering FAQs and providing other resources.

For detailed information regarding COVID-19 and Emergency Resources, visit the St. John’s Board of Trade website.

Hospitality NL has put together a What You Need To Know page with information and resources for tourism and hospitality businesses impacted by this ongoing COVID-19 situation.

What is the Canada Emergency Commercial Rent Assistance (CECRA), and am I eligible? Expand/Collapse

The federal government has made an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses.

This program will lower rent by 75% for small businesses that have been affected by COVID-19. It is expected that CECRA will be operational by mid-May, and further details will be announced soon.

For the most update information on the CECRA program click here

What is the Canada Emergency Wage Subsidy (CEWS)? Expand/Collapse

As a Canadian employer whose business has been affected by COVID-19, you may be eligible for a subsidy of 75% of employee wages for up to 24 weeks, retroactive from March 15, 2020, to August 29, 2020.

This wage subsidy will enable you to re-hire workers previously laid off as a result of COVID-19, help prevent further job losses, and better position you to resume normal operations following the crisis. Learn more

What is the Regional Relief and Recovery Fund (RRRF)? Expand/Collapse

The Regional Relief and Recovery Fund (RRRF) was created to assist businesses and organizations who could not avail of the other programs previously announced.

The Government of Canada is taking action to make sure everyone gets the support needed. It recognizes that some business owners and support organizations have not been able to access other federal emergency support measures. That is why it created the $962 million Regional Relief and Recovery Fund: to address gaps left by other support measures.

The RRRF is complementary to existing federal programs. The Atlantic Canada Opportunities Agency (ACOA) and the Atlantic Association of Community Business Development Corporations (CBDCs) are distributing the RRRF in Atlantic Canada.

Just over $110 million will be allocated in Atlantic Canada
  • $66.75 million through ACOA to support
    • Small and medium-sized businesses that provide products and services to other businesses; and
    • Organizations that provide support services to businesses.
    • $43.3 million through the Atlantic Association of CBDCs to support main street businesses such as restaurants and retailers in small, rural and remote communities across the region.
You must first apply for other federal support measures such as the Canada Emergency Business Account benefit, the Wage Subsidy benefit and the Commercial Rent assistance for small businesses, among others.

Who can apply to the RRRF?

Businesses and organizations that have either:
  • Applied for other federal relief measures and have not been able to secure funds; or
  • Accessed COVID-19 relief measures and continue to experience hardship.
Businesses in sectors that are critical to the resilience and survival of Atlantic Canada’s economy, such as advanced manufacturing, ocean industries, clean growth technology, and tourism, may be given priority.

How to apply
  • Speak to an ACOA program officer to ensure the RRRF meets your needs;
  • Fill out the RRRF application form online;
  • Submit your completed application form electronically or by mail.
Existing ACOA clients can contact your program officer directly; all other businesses and organizations: call 1-800-561-7862 or send an email to ACOA.information.APECA@canada.ca.

If your business is located outside of Atlantic Canada, please contact the regional development agency in your region to see whether the RRRF might be able to help you.

Find more details on these measures and others on the support for business page of the Government of Canada’s COVID-19 Economic Response Plan website.

What support is the Government of Canada providing Canada’s Fish Harvesters affected by the COVID-19 pandemic? Expand/Collapse

The Fish Harvester Benefit

The Fish Harvester Benefit offers income support to self-employed fish harvesters and sharepersons. The benefit covers up to 75% of income losses beyond a 25% threshold for the 2020 tax year when compared to 2018 or 2019. The maximum benefit is $10,164.

Fish Harvester Grant

The Fish Harvester Grant is a non-repayable grant to self-employed fish harvesters with a valid commercial fishing licence in 2020 (issued by DFO or their Province or Territory for freshwater commercial harvesters). The Grant provides a maximum non-repayable support of up to $10,000, dependent on the level of the fish harvesters’ historic fishing revenue in 2018 or 2019.

  • A lesser Grant amount may be provided on a sliding scale relative to revenue or actual expenses, with payments under the Grant not to exceed actual expenses.


Please refer to the COVID-19: Information for industry, Indigenous peoples, and other partners to learn about other supports that may apply to you.

For more information on the Grant and Benefit program, and to see if you are eligible, visit: https://www.dfo-mpo.gc.ca/fisheries-peches/initiatives/fhgbp-ppsp/index-eng.html
 

Find Branch/ATM

Enter address, postal code or branch name