CEBA Canadian Emergency Business Account
Canada Emergency Business Account
This is an interest free loan for up to $40,000 to small businesses or non-profit to cover the operating costs when the
income is temporarily reduced. This will be a separate bank account that will be funded as a revolving line of credit.
- Businesses must enroll for the
Canada Emergency Business Account at their primary financial institution where they have an existing business banking account and cannot apply at more than one financial institution. Doing so may
result in legal prosecution by the federal government.
- To qualify, businesses will
need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. To confirm this, you will have to provide business number and the amount in Box 14 of you 2019 T4 Summary
of Remuneration Paid. A copy of your T4 Summary may be requested.
- Your business has been a registered and operational business on or before March 1, 2020.
- The person enrolling for the Canada Emergency Business Account must have the ability and authority to act on behalf the
- As per the requirements set out by the Government of Canada, you will agree to use funds from this loan to pay for operating
costs that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax.
Any outstanding balance
will be converted to a non-revolving 5-year term loan which matures December 31st, 2025, at this point the balance is to be paid in full.
If 75% of the balance of
the loan is paid back at this point, the remaining 25% of the loan could be forgiven. (ie if the loan was for $40K and $30K is paid back - $10K could be forgiven). The interest free
period of the loan is over.
Interest starts accruing
at a rate of 5% per annum and is payable monthly on the last day.