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Update: 2020-12-09
Business financing

Canadian government guaranteed business loan program (Canadian emergency business account)

The Canada Emergency Business Account (CEBA) is a loan program which was implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).

As of December 4, 2020, CEBA loans for eligible businesses increased from $40,000 to $60,000.

This program provides interest-free loans, of up to $60,000, to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus.

  • Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 33 percent (up to $20,000).

To qualify, these organizations will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019.

To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:

  • a business operating account at a participating financial institution;
  • a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return;
  • eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions.

All applicants have until March 31, 2021, to apply for $60,000 CEBA loan or the $20,000 expansion.

Do not hesitate to consult the Government of Canada website for more details:

https://ceba-cuec.ca/