Canada Emergency Business Account (CEBA)
Although all applications and approvals are handled by financial institutions, Export Development Canada has set up a CEBA telphone hotline which may help you with problems you’re having. The number is 1-888-324-4201. However, our call regarding a couple of issues were not answered other than to say that the criteria on the CEBA website are the correct criteria, not necessarily the documentation provided by the financial institution.
December 4, 2020 update: The Government of Canada has expanded the Canada Emergency Business Account (CEBA) by an additional $20,000. The additional loan is available to business owners who had previously received the original $40,000 loan and a full $60,000 loan is available to those who have not previously applied for CEBA. In addition, $10,000 of the new loan amount is forgivable for businesses that pay the loan back by the end of 2022.
All applicants have until March 31, 2021, to apply for $60,000 CEBA loan or the $20,000 expansion.
Applications for the $60,000 loan or $20,000 expansion can now be made through several financial institutions, but not yet all.
The Government of Canada has also stated that this will also apply to RRRF (Regional Relief and Recovery Fund) loans.
August 31, 2020 update: Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, is today announcing that the application deadline for the Canada Emergency Business Account (CEBA) is extended from August 31 to October 31, 2020. The government is working closely with financial institutions to make the CEBA program available to those with qualifying payroll or non-deferrable expenses that have so far been unable to apply due to not operating from a business banking account.
June 25, 2020 update: Morneau – The expanded CEBA will be available through Canada’s large banks tomorrow. More lenders, like credit unions, will be offering this product in the very near future. We know many small businesses have been waiting patiently in these trying times – help is on the way.
June 15, 2020 update: Trudeau announced that the government will start accepting new applications for the Canada emergency business account starting Friday. The government has expanded program eligibility to include farmers.
May 19, 2020 update: Prime Minister announces expansion of support for workers and small businesses. The Prime Minister, Justin Trudeau, today announced an expansion to the eligibility criteria for the Canada Emergency Business Account to include many owner-operated small businesses. …
Government of Canada’s CEBA Page: https://ceba-cuec.ca/
This program consists of an interest free loan up to $60,000.00 to help small business cover their Operation costs.
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.
Click here to read the full announcement: https://pm.gc.ca/en/news/news-releases/2020/04/16/prime-minister-announces-additional-support-small-businesses
Potential Benefit: $60,000 interest free loan, repayable amount could be reduced by $10,000.00 if repaid before December 31, 2022
Eligibility: In order to be eligible for this loan you have to be
- A small business entity;
- Not for Profit entity.
The qualified entity must have:
- Gross payroll of between
- $20,000.00 and $ 1,500,000.00 in 2019;
With respect to the repayment of this loan;
- it is interest free until December 31, 2022;
- if the borrower repays three quarters of the total loan prior to December 31, 2022, then
- One quarter of the initial loan will be forgiven.
How to Apply: You will apply at a registered financial institute (banks and credit unions)
When to Apply: On or after April 6, 2020
Records to Keep: Details on gross wages paid during the monthly period
- Copy of payroll journal
- Copy of your 2019 T4 Summary
What You Receive: An interest free loan up to $40,000.00 with a potential forgiveness of 25% of the gross loan, if three quarters of the loan is repaid prior to December 31, 2022