Deadline of application is Dec. 31
The Canada Emergency Business Account (CEBA) is now available to businesses that have been operating out of a non-business banking account.
“Our government is unwavering in its support for Canadian businesses of all sizes and we know that small businesses are facing particular adversity right now,” said Chrystia Freeland, deputy prime minister and minister of finance. “The CEBA loan has supported over 774,000 Canadian small businesses and not-for-profits and with this change an even greater number of small business owners will be able to access this important financial lifeline. Small business owners are resilient and our government will continue to be there to help them. Their survival is key to a robust economic rebound once we defeat the coronavirus.”
To be eligible, businesses must have been operating as a business as of Mar. 1, 2020, must successfully open a business account at a Canadian financial institution that is participating in CEBA and meet the other existing CEBA eligibility criteria. The deadline to apply for CEBA is Dec. 31, 2020.
To assess their eligibility for CEBA, applicants can use the pre-screening tool on the CEBA website. To apply for CEBA, businesses should contact their financial institution and provide the appropriate information and documentation. Applicants may contact the CEBA Call Centre at 1-888-324-4201 to receive a status update on a completed application between Monday to Friday from 8 a.m. to 9 p.m. EST.
Welcome
Stakeholders welcomed the new development.
“CCA welcomes today’s announcement to expand eligibility to #CEBA for beef producers operating with a personal banking account,” said the Canadian Cattlemen's Association in a tweet.
“We're happy to hear that the Canada Emergency Business Account (#CEBA) is now open to businesses that are operating out of a non-business personal banking account,” tweeted Aurora Project, a federally funded project created to help permanent residents in Canada navigate the complexities of starting a business.
CEBA
CEBA is part of the Government of Canada’s economic response plan to help Canadians and Canadian businesses deal with the COVID-19 pandemic. The measures under this plan are helping businesses keep their doors open, keep their employees on payroll, protect the jobs that Canadians depend on and recover quickly when the time comes.
It provides zero-interest loans up to $40,000 to small business and non-profit organizations that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes and wages. Repaying the balance of the loan on or before Dec. 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
On Oct. 9, the government announced that it is working with Export Development Canada (EDC) and financial institutions to expand the CEBA program by providing an additional interest-free CEBA loan amount of $20,000, of which up to half will be forgivable if the balance of the loan is paid by Dec. 31, 2022. Businesses accessing the additional $20,000 of financing will be required to attest to need. Further details will be available soon, according to the government.
In May, more than 67,000 farmers became eligible to benefit from the CEBA, up by 36,566 thanks to the expansion of the eligibility rules earlier announced by Prime Minister Justin Trudeau. In June, the federal government expanded the CEBA once more to cover more Canadians and businesses facing difficult challenges as a result of the global COVID-19 outbreak.
In September, the government extended the application for CEBA from Aug. 31 to Oct. 31, 2020.
