335 – Dealing with Small Business Closure and Debt Amid COVID-19
Managing a business is difficult, and the pandemic has made things much worse for Canadian small business owners. If you’re a small business owner facing debt problems, what are your options? On today’s podcast Ted Michalos is back to explain what you can do if you have both business debts and debts you’ve personally guaranteed for your business; strategies if your business was doing fine before the lockdown but is now struggling, and what to do if your business will be viable again after the lockdown. Ted and Doug also discuss your options if you can’t repay the CEBA (Canada Emergency Business Account) loan. Enjoy!
3:27 Why government support hasn’t been enough.
6:00 What's happening with business bankruptcies?
8:50 Sole Proprietorship vs. Corporation: What's the difference?
9:52 When do business debts become personal debts?
11:20 What to do if business is struggling due to COVID-19.
15:07 What to do if your business isn’t viable at all. How do you close it?
20:25 Dealing with secured creditors.
21:44 Dealing with debt as a sole proprietorship.
23:36 What to do if business will be viable after lockdown.
22:20 CEBA loan – what to do if you can’t repay.
31:38 Final practical advice
Should I File Personal Bankruptcy if My Business Closes? https://hoyes.info/small-business-closure
The Canada Emergency Business Account: https://ceba-cuec.ca/
Canada Emergency Wage Subsidy Statistics: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-statistics.html