By Rai Nandan on Friday, 17 April 2020
Category: Taxes

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

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.

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