CEBA has been extended to October 31, 2020, making the program accessible longer to Canadians.
Are you the owner of a small-to-medium-sized business, sole proprietor, family-owned corporation, or non-profit who has lost income due to COVID-19? Then it sounds like you should be looking into CEBA, the Canada Emergency Business Account.
“What is CEBA, Exactly?”
Originally created in early April of 2020, CEBA is a $55 billion government-led program “intended to support businesses by providing financing for their expenses that cannot be avoided or deferred as they take steps to safely navigate a period of shutdown, thereby helping to position businesses for successful relaunch when the economy reopens.”
The condensed version? CEBA provides repayable interest-free loans of up to $40,000 CAD, with a 25% loan forgiveness of up to $10,000 CAD if repaid on or before December 31st, 2022.
“How Do I Know if My Business or Non-Profit is Eligible for CEBA?”
At the time of publication, you are eligible for CEBA if:
- You are a small business (even if you don’t have a payroll), non-profit, sole proprietor, or a family-owned corporation that has been in operation since March 1st of 2020
- You are able to supply a 2018 or 2019 tax return if you made under $20,000 CAD or less the previous year
- You have a business account at a Canadian bank and a Canada Revenue Agency number
- You have proof of non-deferrable expenses of between $40,000 CAD and $1,500,00 CAD in 2020 before March 1st (and, if non-deferrable expenses have occurred past the March 1st deadline, proof that they were non-deferrable due to contractual or legal reasons)
Refer to the Canadian government’s latest update on CEBA eligibility before applying due to potential updates or amendments to the list.
“What Are Examples of Non-Deferrable Business Expenses?”
We’re glad you asked! CEBA’s list of eligible non-deferrable business expenses include:
- Business-related lease or rent payments
- Business-related utility payments
- Business-related insurance or property tax payments
- Business-related payments for license renewals, authorizations, or permissions
- Wages and business-related payments to third parties for services rendered
“Great! So How Do I Apply? When’s the CEBA Deadline?”
Depending on which bank you’re with, there will be a portal set up for you to fill out your CEBA application; simply Google “‘My Primary Financial Institution’ CEBA Application” to be directed there.
Once your application is filled out and deemed eligible, your funds will be automatically deposited into your account within seven business days.
While the current CEBA application deadline has been extended to Oct. 31st, it is recommended that you verify that no further postponements or rescheduling has occurred before submitting your application.
Know of a business owner who should be filling out their application as we speak? Be sure to share this blog so they don’t miss out on (likely) much-needed financial relief!