Update on the Canada Emergency Business Account (CEBA): Expansion of Eligibility
UPDATE: The Federal Government announced that starting June 19, 2020, small businesses that have not been able to access the CEBA because of lack of payroll, sole proprietors receiving business income directly and family-owned corporations remunerating in the form of dividends will become eligible. Applications of these small businesses will be accepted starting Friday, June 19.
The Government has announced an expansion to the eligibility criteria for the CEBA to allow more Canadian small businesses to access the interest-free loans. This expansion will make the CEBA available to more 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 instead of payroll.
To qualify for the CEBA, applicants with payroll lower than $20,000 would need the following:
- A business operating account at a participating financial institution
- A Canada Revenue Agency (CRA) 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 and insurance.