$40,000 loan application under the CEBA program soon available for businesses with payroll under $20,000
Dear business members:
The government previously announced that the Canada Emergency Business Account (CEBA) will be accessible to small businesses with employment earnings of less than $20,000 in 2019 and with non-deferrable expenses, like rent, utilities and property taxes, of between $40,000 and $1.5 million. At this time, we are waiting for the federal government to establish the official launch date. Once we have obtained clarity on this matter, we will provide an update to our members through our website, Facebook, AccèsD and by email, which will include additional details on the expanded eligibility criteria as well as confirm when we will be in a position to start accepting applications.
The easy-to-use application will be available directly in your AccèsD Affaires portal. Therefore, it is strongly recommended that all our members, who wish to benefit from the CEBA, register to AccèsD Affaires as soon as possible. For our business members that meet the current eligibility criteria and have yet to submit their applications.
To quickly submit an application, click here.
To determine your eligibility, we encourage you to consult the program details of the Canada Emergency Business Account.
Here is a basic overview of the CEBA and the expanded eligibility criteria:
- Interest-free until December 31, 2022, with no principal payments required;
- 25% (up to $10,000) is forgivable if loan is repaid by December 31, 2022;
- If loan is not repaid by December 31, 2022, the option to set up a 3-year repayment term (principal + interest) or keep the loan with a 5% interest rate;
- Must be repaid by December 31, 2025.
Once the expanded eligibility criteria is in effect, you will require three main pieces of information to complete the application:
- The name of the financial institution where you submitted your application; and
- Your 9-digit business number (e.g.: 123456789RP001); and
- Electronic or paper copies of receipts/invoices/agreements are to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.
Eligible Non-Deferrable Expenses are:
- Wages and other employment expenses to independent (arm’s length) third parties;
- Rent or lease payments for real estate used for business purposes;
- Rent or lease payments for capital equipment used for business purposes;
- Payments incurred for insurance related costs;
- Payments incurred for property taxes;
- Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and Internet;
- Payments for regularly scheduled debt service;
- Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.
The funds received from the CEBA program may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
If you’ve applied for CEBA and have questions, please contact the new CEBA Call Centre at 1-888-324-4201 to receive a status update on your CEBA application. The CEBA call centre is open Monday to Friday from 8:00 am to 9:00 pm ET.
For any questions, please contact your branch by telephone.
Thank you for your cooperation.
President & CEO