The expanded Canada Emergency Business Account (CEBA) is now open for applications. This means that more small businesses can access it.
As of June 26, 2020, businesses eligible for CEBA now include
- owner-operated small businesses that do not have a payroll,
- sole proprietors receiving business income directly
- family-owned corporations remunerating in the form of dividends rather than payroll.
Applicants will have to demonstrate having eligible non-deferrable expenses between Cdn. $40,000 and Cdn. $1,500,000 in 2020.
The expanded CEBA is being made available gradually by more than 230 financial institutions across the country, starting with the larger banks. Other participating financial institutions will start offering the program over the coming weeks.
The Government of Canada launched CEBA to ensure that small businesses have access to the capital they need to see them through the current challenges, and better position them to quickly return to providing services to their communities and creating employment.
This $55 billion program, implemented by eligible financial institutions in cooperation with Export Development Canada (EDC), provides interest-free loans of up to $40,000 to small businesses and not-for-profits.
Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Get more information at ceba-cuec.ca