Canada Emergency Business Account (CEBA) - The $40,000 loan

This will provide a loan of $40,000 to help eligible businesses with operating costs.

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Eligibility

• Valid CRA Business number and operational on or before March 1, 2020.

• Who have stopped working because of COVID-19 and have not voluntarily quit their job or are eligible for EI regular or sickness benefits;

• Active business bank account with a financial institution on or before March 1, 2020 and must be in good standing with the financial institution.

• 2019 payroll of $20,0000 to $1,500,000 as reported in Box 14 of the 2019 T4 Summary. Dividends issued do not qualify for this threshold (T5)

• One person with authority to bind the corporation must attest that funds will be used for non-deferred business expenses such as payroll, rent, utilities, property tax and debt payments. Deferred expenses can consists of management bonuses, dividends, etc.

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Terms of the Loan

• Interest free and 25% of the loan is eligible for loan forgiveness, if 75% ($30,000) has been fully repaid on or before December 31, 2022. There is no obligation to pay principal payments during this period. 

• If the loan is not repaid by December 31, 2022, it can be converted into a 3 year term loan with an interest rate of 5%, payable monthly, with no obligation to pay principal till December 31, 2025.

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How to Apply:

• Businesses must apply directly through their primary financial institution. Applications are submitted only online.Refer to the financial institution's website for instructions. 

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Please note that the above eligibility list is not exhaustive. We welcome any questions via email. However, we will be unable to answer any questions via phone-calls