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Canada Emergency Business Account (CEBA)

CEBA provides credit for small businesses to pay for immediate operating costs such as payroll, rent, utilities, insurance, property tax, or debt service. It is 100 per cent funded by the Government of Canada.

  • It is available to Canadian employers with $20,000 to $1.5 million in total payroll in 2019 and operating as of March 1, 2020. This includes smaller businesses and other eligible employers such as not-for-profits.
  • Under CEBA, financial institutions will be able to provide interest-free credit facilities of up to $40,000 to eligible businesses.
  • If the loan is repaid by December 31, 2022, 25 per cent (up to $10,000) will be forgiven
  • If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5 per cent interest.

This program is now available at various financial institutions and credit unions. Contact your primary financial institution to apply.

For more information: https://www.canada.ca/en/department-finance/news/2020/03/additional-support-for-canadian-businesses-from-the-economic-impact-of-covid-19.html#_New_Loan_Programs

The Prime Minister, announced on May 19, 2020, an expansion to the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses.

The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.

To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:

  • a business operating account at a participating financial institution
  • a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
  • eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions. More details, including the launch date for applications under the new criteria, will follow in the days to come