‘We are taking the necessary steps to ensure that small businesses will be able to access the liquidity they need to keep operating while times are still tough’
The federal government is extending the application for the Canada Emergency Business Account (CEBA) from Aug. 31 to Oct. 31, 2020, to continue supporting small businesses in the time of COVID-19.
The government is working closely with financial institutions to make the CEBA program available to those with qualifying payroll or non-deferrable expenses that have so far been unable to apply due to not operating from a business banking account.
Further details on these changes will be released in the coming days, including a new business account opening process through which qualifying businesses will be able to apply, according to the government.
BCAP
Also, the government is extending the Business Credit Availability Program (BCAP) to June 2021. Through BCAP, the government is supporting the flow of additional credit that businesses need to maintain operations and keep employees on the payroll.
“Small businesses can count on the federal government to stand with them during this pandemic. By making CEBA loans available for an additional two months, we will help more small businesses get into a better position to weather the storm and get back on their feet. Extending BCAP will improve access to the capital needed by businesses to pay workers’ salaries and cover expenses — and it will also serve as a bridge until we return to more normal borrowing conditions,” said Chrystia Freeland, deputy prime minister and minister of finance.
“The federal government is actively considering what further measures are needed as we continue with a safe reopening of the economy.”
In May, the government expanded the BCAP to mid-sized companies with larger financing needs, providing mid-market businesses with loans of up to $60 million per company, and guarantees of up to $80 million.
“For Canada to truly lead in a post-COVID world, supporting small businesses is critical. This is why our government continues to take bold and comprehensive action to do just that,” said Mary Ng, minister of small business, export promotion and international trade. “By extending the Canada Emergency Business Account through to the end of October, we are taking the necessary steps to ensure that small businesses will be able to access the liquidity they need to keep operating while times are still tough, so they will be able to rebuild on the road to economic recovery.”
EDC
Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will continue to work with lenders to support access to capital for Canadian businesses of all sizes in all sectors and regions, according to the government.
“Since the original announcement in April, 728,000 Canadians have been able to benefit from #CEBA? This extension will allow EDC to help even more Canadian companies sustain their businesses during these challenging times,” said EDC in a Twitter post.
CEBA and BCAP are both part of the government's COVID-19 Economic Response Plan, which is helping Canadians and businesses deal with the economic impact of the ongoing pandemic.
