The Canada Emergency Business Account (CEBA) is now available to businesses that did not have a business account before March 1, Canada’s Deputy Prime Minister and Minister of Finance Chrystia Freeland said on Monday (Oct. 26).
The CEBA provides interest-free loans of up to $40,000 to small business and non-profit organizations that have experienced reduced revenues due to the COVID-19 pandemic.
Repaying the balance of the loan on or before Dec. 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
This program was passed in Canadian parliament in April and is among many financial aid programs that have been introduced at the federal level to assist businesses during COVID-19.
To be eligible for this latest modification of the program, businesses must have been operating as a business as of March 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.
“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. 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," stated Freeland.
Since launching the CEBA, the government has made modifications to the program, including:
- increasing the payroll eligibility range from between $50,000 and $1.0 million to between $20,000 and $1.5 million;
- making CEBA available to owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll.
“Small businesses owners make incredible contributions to our communities in every corner of the country. The next phase of the CEBA loan launched today will help even more of these hard-working Canadians. We’ll continue to deliver the extra support small businesses need to bridge through to better times," stated the Hon, Mary Ng, Minister of Small Business, Export Promotion and International Trade.
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