Are you stressed out about the RBC Canada Emergency Business Account program? We have received a number of phone calls from Canadians who are interested in suing banks like RBC. These are people that were rejected from the Canada Emergency Business Account (CEBA) program. Many of these people are business owners who should have qualified for the loans. They want to speak to our business lawyers in Ontario and British Columbia to see what can be done. Some people want to know who they can sue for COVID-19.
Others who have booked consultations with our affordable business lawyers have wanted to sue other companies. The Coronavirus pandemic has left massive economic damage. Therefore, people are stressed out. Others have contacted us to speak to one of our debt consultants.
If you want to speak to a debt consultant or business lawyer, reach out to us below. Our lawyers can help you with any COVID-19 related business law needs.
You can also pick the time and date that works for you below.
Canada Emergency Business Payment Deferrals
The point of the CEBA program is to make sure that Canadian businesses have enough money to get through COVID-19. The Canadian government has given a large amount of money to the major Canadian banks. Of course, most of this money is meant to end up in the banks of the businesses. For those that are rejected, they are looking at their legal options. This can include lawsuits against the Royal Bank of Canada (RBC) or speaking to a debt consultant.
The government organization that gave the money to the banks was the Export Development Canada group, also known as EDC. The amount of money given was $25B. It allows Canadian businesses to receive $40,000. Only $30,000 will have to be paid back. Banks like RBC are responsible for paying out the capital to any business that qualifies. We believe the bank will reduce that amount that has to be paid back to only $20,000. Many Canadian companies are going to have a hard time paying back the loan.
Small Business Requirements
- must have existed before March 1, 2020
- must have paid over $50,000 in payroll
- set up a bank account with a bank like RBC
- must agree to the terms of the loan
If you want to talk about debt or filing lawsuits, you can fill out the form on the side of this page. Our business lawyers can help you send out demand letters to move things along. If you need help with the RBC Canada Emergency Business Account, you must continue to push.
Have you applied for the CEBA account under RBC? It’s a line of credit, it’s not a credit card loan. Once you get the loan, it will show as “available credit.” The amount will be $40,000 and you can see it on your RBC online banking.
It’s a revolving line of credit until a certain time. After that, it will show as a loan. Some people are seeing their line of credit show up on their personal and business online banking. That is confusing many people. RBC did not issue you two different loans.
Most of the banks shut down during the Coronavirus pandemic. This made things very hard for small business owners. For those that wanted to apply for the CEBA, they had to do everything via online banking. However, some banks had a hard time with their systems. For example, a company “Example Company Inc” might have been rejected because they didn’t write “Example Company Inc.” on their application. RBC does not have time to manually check applications. Therefore, if something is wrong with their systems, you will likely be automatically rejected.
Calling the banks also has little use. Therefore, sometimes a demand letter from a law firm can help move things along. We have also received phone calls from people that want a business lawyer to sue nursing homes. We find these kinds of cases extremely interesting. However, keep in mind that lawsuits can be expensive. If you want to sue a company for $1m, you might have to spend $50,000. If you win, it was worth it.
Below are some tips for getting your loan:
- Make sure RBC is your primary financial institution when you apply with them
- Ensure you know how to use online banking
- Understand that an interest-free loan is still a loan
In conclusion, you can learn more about Canadian law by seeing our videos.