Canada Emergency Business Account (CEBA)
CEBA provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs—such as rent, utilities and insurance—during a period where their revenues have been temporarily reduced. These loans are partially forgivable as repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
To qualify for CEBA, applicants must continue to meet either the payroll eligibility criteria or they must demonstrate a minimum of $40,000 in eligible non-deferrable expenses. In addition to requiring a business account, applicants with payroll lower than $20,000 will still need to show that they meet the following CEBA eligibility requirements: a Canada Revenue Agency business number; a 2018 or 2019 tax return; and eligible non-deferrable expenses of between $40,000 and $1.5 million, after taking into consideration other federal COVID-related supports.
Applicants now have until June 30, 2021 to apply for a $60,000 CEBA loan or the $20,000 expansion at their financial institution.