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Canada Emergency Business Account Loan Applications Close on Halloween



In response to the adverse impacts COVID-19 has brought to small businesses, the Government of Canada has introduced the "Canada Emergency Business Account," which provides interest-free loans of up to $40,000 to eligible small businesses. The loan is partially forgivable under certain conditions (discussed below).


You may apply for these loans through your financial institution. Application deadline is October 31, 2020.



Loan Overview

Loans will be interest-free until December 31, 2022


No repayments are required until December 31, 2022, but can be made at any time in any amount prior to that date


If businesses can repay the full amount ON OR BEFORE December 31, 2022, 25% (up to $10,000) of the loan will be forgiven


If you cannot repay the loan by December 31, 2022, it will be converted to a traditional loan with interest and repayment terms according to your financial institution




Eligibility

Canadian business in operation as of March 1, 2020


Total payroll of $20,000 to $1,500,000 in 2019 as indicated on your 2019 T4 Summary of Remuneration Paid


For businesses with less than $20,000 in total employment income paid in 2019, you may still be eligible if you have:

  • A business operating account at a participating financial institution;

  • A Canada Revenue Agency (CRA) business number;

  • A 2018 or 2019 tax return; and

  • Eligible non-defferable expenses (rent, property taxes, utiltiies, and insurance) between $40,000 and $1,500,000.


You must apply once ONLY and at your primary financial institution


You must have a business (not a personal) bank account


You must agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, property tax, and regularly scheduled debt service


You intend to continue to operate your business or to resume operations


This includes unions, charitable, religious or fraternal organizations or clients owned by such an organization if it is a T2 or T3010 corporation that generates a portion of its revenue from the sales of goods or services



Visit Canada Emergency Business Account (CEBA) for more information