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).
Highly Affected Sectors Credit Availability Program (HASCAP)
The HASCAP offers guaranteed loans between $25,000 to $1 million for small and medium-sized businesses that have experienced a revenue decrease of 50% or more resulting from the COVID-19 pandemic.
To be eligible, your business must have already received the Canadian Emergency Wage Subsidy (CEWS) or the Canadian Emergency Rent Subsidy (CERS) by demonstrating the 50% minimum revenue decrease within the last 8 months prior to applying for HASCAP.
If your business is eligible buthas not received the CEWS or CERS you must apply for those programs first.
If your business doesn’t qualify for the CEWS and CERS, you must provide financial statements that show at least 3 months (don’t have to be consecutive) of a minimum 50% revenue decrease monthly year-over-year minimum 50% revenue decrease within the 8-month period prior to applying for HASCAP.
HASCAP loans are available until June 30, 2021. If Servus is your primary financial institution, you can apply by contacting your Servus business advisor.
Canadian Emergency Business Account (CEBA)
CEBA provides the option to apply for interest-free loans of up to $60,000 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 March 31, 2021.
New applicants can apply for a one-time $60,000 loan and businesses that have already received $40,000 can apply for a $20,000 expansion to their original CEBA loan.
To qualify, your organization needs to demonstrate:
It's an active operating company with an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
Your annual payroll is between $20,001 and $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.
There are a few easy steps to complete your organization’s new CEBA application or the $20K expansion application.
Tip: have your Servus business membership number, 2019 T4 Summary or latest filed tax return (2018 or 2019) on-hand before beginning your application.
You must have a business account through Servus and we must be your primary financial institution. If you don’t currently have a Servus business account, visit your nearest branch to open one prior to applying for CEBA.
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.
Once your application is submitted and reviewed and approved by the Economic Development Canada (EDC) you can expect funds to be available in your account within 10 business days.
If your business's $20,000 expansion application was not successful, you could have an opportunity to remediate the application.
Depending on the reason why your $20,000 expansion application wasn't successful, you may be able to submit corrected or additional information to remedy your application when new processes become available later in March.
Once the new process is available, Servus will reach out to all applicable business members before the end of March with details on next steps.
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).
Please access the application using browsers such as Chrome, Firefox or Safari. You may have issues trying to access it using Internet Explorer.
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
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.