COVID 19 Update to the Canada Emergency Business Account April 16, 2020
The Canada Emergency Business Account (CEBA)
The CEBA provides for an interest-free loan of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
HOW TO APPLY
Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.
Repaying the balance of the loan on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000).
NEW ELIGIBILITY REQUIREMENTS
- The Borrower is a Canadian operating business in operation as of March 1, 2020.
- The Borrower has a federal tax registration.
- The Borrower’s total employment income paid in the 2019 calendar year was between Cdn. $20,000 and Cdn. $1,500,000.
- The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020, and was not in arrears on existing borrowing facilities.
- The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
- The Borrower acknowledges its intention to continue to operate its business or to resume operations.
- The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
RESTRICTIONS ON THE USE OF FUNDS
The funds shall only be used pay non-deferrable operating expenses including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.