If you're experiencing financial hardship as a result of COVID-19, we can offer financial relief for your existing mortgage, loans and other credit products on a case-by-case basis. You should be able to focus on what’s most important while you work through this tough time.
Payment deferrals and other financial relief options are helpful short-term solutions for anyone experiencing financial hardship, but they might not be the best solution for everyone. Our advisors are here to help you determine what the right option is for you.
We can defer payments (principal and interest) on personal mortgages and/or consumer or dealer loans for up to six months. During the deferral period the accrued interest will accumulate but won’t be capitalized (we won’t charge interest on interest).
We can defer payments (principal and interest) for up to three months, with an additional three-month period of interest-only payments, if required. Interest will accrue for the full period of the deferral and won’t be capitalized (we won’t charge interest on interest).
CEBA provides the option to apply for interest-free loans of up to $40,000 for small businesses and not-for-profits, to help cover your operating costs where revenues have been temporarily reduced.
Note: the CEBA program ends on October 31.
To qualify, your organization needs to demonstrate:
it's an operating company registered in Canada (i.e., not a holding company)
your annual payroll (up to $1.5 million), based on the 2019 T4 Summary of Remuneration Paid
If your organization has $20,000 or less in total employment income paid in the 2019 calendar year, you'll also need:
a Canada Revenue Agency business number
a 2018 or 2019 tax return
proof of eligible non-deferrable expenses between $40,000 and $1.5 million for 2020 (for example: costs such as rent, property taxes, utilities and insurance). Expenses will be subject to verification and audit by the Government of Canada.
You must have a business account through Servus and we must be your primary financial institution. Through our partner, we’re able to connect you to online CEBA applications. Once your application is submitted (and your proof of expenses uploaded, reviewed and approved by the Economic Development Canada (EDC) you can expect funds to be available in your account within 15-20 business days.
If you have questions about your application, contact the dedicated CEBA call centre at 1.888.324.4201, available Monday through Friday from 6am-7pm (MST).
Tip: have your business membership number, 2019 T4 Summary or latest filed tax return (2018 or 2019) on-hand before beginning your application.
Please access the application using browsers such as Chrome, Firefox or Safari. You may have issues trying to access it using Internet Explorer.
Note: New eligibility requirements for CEBA were announced by the Government of Canada on May 19. Businesses can now apply under these new criteria.
Canada Emergency Wage Subsidy (CEWS)
CEWS provides eligible businesses with a subsidy of 75% of their employee wages for up to 12 weeks to help you re-hire workers previously laid off as a result of COVID-19 and avoid future job losses. The Canada Revenue Agency (CRA) is encouraging eligible businesses to sign up for direct deposit to expedite your CEWS payments.
You can now sign up for CRA direct deposit within Servus Business Online Banking to receive CEWS payments. Commercial Net Banking business members can call 1.877.378.8728 or email to get set up.
As part of the Business Credit Availability Program (BCAP), Servus can provide new loans to existing members that can be used for operational expenses in response to COVID-19. Businesses in all sectors that were financially viable and generating revenue prior to the pandemic are eligible to apply.
The loan is interest-free until December 31, 2022. No principal repayments are required during this period (unless you plan to repay 75% to qualify for the 25% forgiveness). While no principal repayments are required before December 31, 2022, it’s good practice to make steady installment payments to match the incoming cash flows from your business operations.
Following the Government of Canada’s program requirements, members must agree to use funds to pay for operating costs that cannot be deferred such as payroll, rent, utilities, insurance and property tax. Proceeds may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
Government organizations or bodies, or an entity owned by a government organization or body;
Unions, charitable, religious or fraternal organizations or entities owned by such an organization, or if it’s registered T2 or T3010 corporation that generates a portion of its revenue from the sales of goods and services;
Entities owned by individual(s) holding political office; and
Organizations promoting violence, inciting hatred or discriminating on the basis of sex, gender, sexual orientation, race, ethnicity, religion, culture, region, education, age or mental or physical disability.
Canada Emergency Wage Subsidy (CEWS) and CRA direct deposit
For existing cardholders, we can offer up to six months of minimum payment deferrals and a reduced interest rate of 10.99% (for the first three months). If you defer your minimum payments, your balance will still reflect unpaid interest, but it won’t be capitalized (no interest on top of interest).
If you have Balance Protection Insurance coverage on your Servus Mastercard, you may be able to claim for involuntary unemployment or loss of self-employment income benefits. Refer to your Certificate of Insurance [pdf] for eligibility details. If you’re eligible, you can submit a claim through Assurant Insurance’s online portal.
If you have a balance of Circle Rewards points, you may be able to redeem them for cash that can be applied towards the minimum payment owing on your Mastercard statement. Note that the maximum redemption value is 25,000 points ($250) and requests must be made in $5 increments.
The payment deferral and rate reduction will take effect in the statement period that it was posted.
For example: Your statement date is May 30. You request relief on May 5 and it’s posted to your account the same day. Your statement will be generated on May 30 and it will show that you were charged 10.99% for the entire month of May and the minimum payment will be $0.
Members who requested payment relief prior to April 20 will see the rate reduction on their next statement cycle after April 20, 2020.