Canada Emergency Business Account (CEBA) - Updated

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One of the economic measures announced by the Federal Government to help businesses during the COVID-19 pandemic is the Canada Emergency Business Account.

What is the Canada Emergency Business Account?
The Canada Emergency Business Account will provide interest-free, government-guaranteed loans in the form of lines of credit of up to $40,000 to small business and not-for-profits, to help cover their operating costs during this period where revenues have been temporarily reduced.

Who is eligible?
Businesses and not-for-profits will be eligible for the loan if they have:
- an operating company registered in Canada;
- an annual payroll of between $20,000 and $1.5 million, based on their T4SUM Summary of Remuneration Paid (Updated on April 16, 2020)

How to apply?
Businesses and not-for-profits should contact the financial institution with whom they have pre-existing relationship. Their financial institution will assess their request / application for the loan.

Important note: Each bank will have their own method of application but most banks are accepting online applications. You may check your bank’s website for any updates.

How to repay loan?
25% of the $40,000 or $10,000 is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.


Sources:
https://pm.gc.ca/en/news/news-releases/2020/03/27/prime-minister-announces-support-small-businesses-facing-impacts
https://www.canada.ca/en/department-finance/economic-response-plan.html

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