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CEBA – $40,000 loan for businesses

CEBA – $40,000 loan for businesses

Expanded CEBA loan application offered at Caisse Alliance

Dear business members,

The registration process for the expanded Canada Emergency Business Account (CEBA) is now open. As part of this program, offered during this period of great economic hardship due to COVID-19, businesses such as owner-operated businesses that do not have a payroll, sole proprietors receiving direct business income, family-owned corporations remunerating their employees by dividends and others in need of financial support can take advantage of an interest-free loan of $40,000.

To be eligible for this loan, businesses and not-for-profits must:

  • have $20,000 or less in total employment income paid in the 2019 calendar year;
  • have eligible non-deferrable expenses between $40,000 and $1,500,000;
  • have an operating business that is registered in Canada as of March 1, 2020;
  • have a Canada Revenue Agency business number and have filed a 2018 or 2019 tax return;
  • have Caisse Alliance as their primary financial institution. This means that the business uses a Caisse Alliance business operating account (opened on or before March 1, 2020) for its day-to-day payments and cash management activities;
  • not be in arrears on existing borrowing facilities with the Caisse Alliance by 90 days or more as of March 1, 2020;
  • not have previously used the Program and will not apply for support under the Program at any other financial institution;
  • acknowledge its intention to continue to operate its business or to resume operations;
  • agree to participate in post-funding surveys conducted by the Government of Canada or any of its agents.

To determine your eligibility, we encourage you to consult the program details of the Canada Emergency Business Account.

The application process for the expanded CEBA is simple, electronic and consists of two easy steps:

Step 1: Apply in a few minutes by clicking here.

Prior to Step 2, it is recommended that you gather electronic copies of your receipts, invoices and agreements to support your 2020 Eligible Non-Deferrable Expenses.

Step 2: Once Step 1 is complete, submit your documentation mentioned above by clicking here.

At the reception of your application and supporting documentation, the Government of Canada will validate funding eligibility for the program. You should expect to receive the funds deposited in your business operating account within 10 to 15 business days following the submission of your application.

Program Features:

  • A $40,000 interest-free loan to help pay for operating costs that can’t be deferred as a result of COVID‑19.
  • $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 20‍22.
  • If the loan cannot be repaid by December 31, 20‍22, it can be converted into a 3‑year term loan at a 5% interest rate.

Business owners are encouraged to register with our AccèsD Affaires online service if they are not already registered.

If you have any questions, please contact your branch by telephone.

Sincerely,

Pierre Dorval
President & CEO
Caisse Alliance

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