Understanding the Emergency Response Benefit (CERB)
The new COVID-19 pandemic originating in Wuhan, China broke out in early December into the rest of the world has now left no corner of the world untouched. Everywhere from Europe to South America, Asia to Australia and North America to Africa. At the time of writing, the epidemic has now infected millions and eclipsed 100,000 deaths with a decrease in the trend nowhere in sight. News outlets have shifted from reporting on the shady world of politics to a never-ending 24/7 update outlet on the status of the virus’ global spread. With all of the attention garnered towards the coronavirus’ symptoms, preventative measures, and death toll, one might seem oblivious to the plight of the masses. While the virus’ spread and subsequent destruction of communities must not be taken lightly, the reverberations of the virus have spread further than the virus could hope to equal. It has affected nearly every person on the planet due to the economic turmoil it has caused in our heavily interconnected and globalized world. However, more so the West in the long-run than any other since they are the ones who are most vulnerable to this type of economic catastrophe.
The Ripple Effects
Canada’s economy is heavily reliant on the tertiary industry of its economy for revenue due to the majority of Canadians being employed in it. This industry includes everything from education, transportation, banking, communication, retail, real estate, tourism, and healthcare. Now it is painfully obvious that only one of the sectors listed above is still in high demand, healthcare. However, the rest of these sectors are either destroyed like tourism, or significantly reduced. The fact of the matter is if one is to include the quaternary sector of the economy: information services, into the service sector, that totals out to 75% of Canadian jobs and 78% of national GDP. These numbers while representing the advancement of Canadian society from moving away from resource extraction and manufacturing also represent a vulnerability in times of crisis such as these. All of those 75% of Canadian jobs minus the ones involved in healthcare are now struggling. That is more than half of Canadians, and even greater numbers in urban areas!
On Shaky Ground
On top of that, a study by MNP Consumer Debt Index shows that out of the 2000 Canadians surveyed, 50% stated that they are $200 or less away from not being able to cover their monthly expenses. A similar 49% of respondents expressed doubt in their ability to pay off their expenses without plunging deeper into debt. Statistics Canada uncovered that the average Canadian owes about $1.76 for every $1 in disposable income People have already been living on shaky financial ground before the crisis struck and now the house of cards has fallen. The Canadian unemployment rate is projected to reach 11% by the end of April according to economists from the Royal Bank of Canada. This is a doubling from February’s jobless rate of 5.6% which is due to the closure of non-essential businesses across Canada as well as decreased demand for all other services. Numerous employees have been laid off in the preceding month or have received reduced pay and hours.
The Support You Need
Many of those individuals are now not taking in any income and are under increasing financial pressure everyday. This is why the Canadian government announced and launched the CERB (The Canada Emergency Response Benefit) for struggling Canadians. The Canada Emergency Response Benefit was created to support financially struggling employed and self-employed Canadians in the wake of COVID-19. It provides individuals with a payment of $2000 a month, in other words, $500 a week for someone directly affected by COVID-19. These payments will continue for up to 16 weeks. This means that if a family with 2 parents that have both lost their income apply for the Canada Emergency Response Benefit, they can receive $4000 a month. Moreover, a large swath of the population is eligible to claim this money. In order to be eligible, the requirements are: 1) you must reside in Canada and 2) you are 15 years of age or older. You also had to have stopped working due to COVID-19 and not be receiving employment income, self-employment income or any government benefits related to maternity/paternity leave during the duration of receiving the Emergency Response Benefit. After applying for the program, you should receive the payment within 3 business days if you signed up for the direct deposit. If you don’t, expect it to take about 10 business days at worst.
How and When to Apply
The government has tried to make the program as intuitive as possible to get the money out as quickly as possible into the hands of Canadians. In regard to when you should be applying, that system has been outlined by the government. For those born between the months of January and March, the optimal registration date is Apr.6. If you were born between the months of April and June, the date is Apr 7. The pattern continues with people born July to September applying on Apr 8 and those born October to December being recommended to apply on Apr 9. If you were not able to catch your date, don’t panic! For everyone that wasn’t able to apply, a window of Friday Apr 10 - Sunday Apr 12 is open to apply for the Emergency Response Benefit. There are two different outlets through which to receive your benefit: direct deposit or cheque. The first will be directly deposited into your bank account while the cheque will be mailed to you. Just ensure that your mailing information is up to date with the CRA in advance. If you weren’t able to apply, just keep in mind that the pattern continues in the following months of March to October in which the CERB will continue to be provided. You will be able to apply for the CERB on Mondays for people born January to March, Tuesdays for those born April to June, etc.
Once you have all your information in order and know when you need to sign up, you’ll need to go onto the CRA’s (Canada Revenue Agency’s) website. You will need to sign in to CRA My Account online. If you don’t already have an account then you can register for one on the CRA website. Another alternative is if you already have a My Service Canada Account then you can use the link provided to switch over to the Canada Revenue Agency website. Finally, you can also apply for the Emergency Response Benefit over the phone using an automated phone service at 1-800-959-2019 or 1-800-959-2041. Make sure to have your SIN and postal code to verify your identity. Simply state the info previously mentioned, the period of funding you are applying for and that you qualify for the Emergency Response Benefit. These services are available 7 days a week, 21 hours a day (closed from 3 to 6 a.m.). On top of that, provincial governments are also offering numerous aid programs. To find out more, visit your provincial website for more details on the matter.
What If It’s Not Enough?
After having signed up or received other forms of government aid, you might be able to sign up to receive even more with the help of Magical Credit. Magical Credit is an online bad credit loan provider that allows you to sign up for easy-to access cash loans which has very few requirements and carries with it a substantially lower interest rate than payday loan companies. Their broad criteria for qualification is in contrast with major banks who are all too hesitant to loan money to those with sub-par credit scores. Unfortunately, the $500/week is not enough for many families with children and homes. Expenses such as insurance and other expenses which cannot be deferred need to be paid off. The $500/week fund might be insufficient. If you are receiving money from EI, the CPP the CERB or other forms of direct government aid, you are eligible to apply for a Magical Credit cash loan. Their loans vary in length from a 6 month to a 60 month pay period and amounts ranging from $500 to $20,000. To learn more, you can use their loan calculator on their website to calculate your payment amount monthly, semi-monthly or biweekly. You can visit https://www.magicalcredit.ca/who-qualifies/ to apply in a mere 5 minutes today!
Conclusion
To summarize, many Canadians have temporarily or permanently gone out of work due to an over-reliance on the service industry. On the bright side, the federal government has launched an Emergency Benefit Response, the CERB, for anyone residing in Canada who has lost their job or is currently not making any income due to COVID-19. People can apply on different days of the week based on their month of birth on their CRA My Account, My Service Canada account or over the phone. It will result in individuals receiving $2000 a month for a 16-week period. For those currently working vastly reduced hours such as 10hrs a week, the government has said that it will announce a new program attributable to these workers in the following week. If those funds, however, aren’t enough to get you through your monthly expenses, you can apply for an easy-to-get cash loan with flexible interest rates and payments with Magical Credit. Stay strong Canadians, together we’ll reach the other end of the tunnel. For more information, visit the Government of Canada’s website at https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html#start
