Canada Emergency Business Account (CEBA)

CEBA Requirements and Deadlines Have Changed

As of October 26, 2020, eligible Canadian businesses that currently operating through a personal bank account will be able to apply for CEBA.

Stay tuned to the CEBA website for more details, including launch details in the coming weeks.

Canada Emergency Business Account (CEBA)



The Canada Emergency Business Account (CEBA), is a federal government program that provides interest-free loans up to $40,000 to qualifying businesses.

The Canada Emergency Business Account details:

  • provide a $40,000 loan
  • 0% interest until December 31, 2022
  • requires no minimum monthly principal payments until December 31, 2022
  • NO Prepayments can be made until after November 1, 2022
  • $10,000 loan forgiveness is available provided outstanding balance is fully paid on or before December 31, 2022.

Qualification:

  • Have paid between $20,000 to $1.5 million in total payroll in 2019  
  • Be an operating company registered in Canada 
  • Your organization is an operating business or not-for-profit (i.e., not a holding company)
  • Must have their primary business or not-for-profit operating account opened on or before March 1, 2020 at EKC
  • Confirm that the loan proceeds will be used to pay for operating expenses that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax.

Canada Emergency Business Account (CEBA) has been expanded to include more small businesses without employees.

The CEBA offers interest-free loans of up to $40,000 to small businesses and not-for-profits. The program will now be available to businesses with sole proprietors, those that rely on contractors, and family-owned businesses that pay employees through dividends rather than payroll.

CEBA will now be available to sole proprietors, businesses that rely on contractors and family-owned corporations that pay employees through dividends, according to a government. These include companies such as hair salon owners, independent gyms, and local physio businesses. The government will provide details on the expanded criteria shortly.

To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 are required to have 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; and eligible non-deferrable expenses (such as rent, property taxes, utilities, and insurance) between $40,000 and $1.5 million.

Canadian Credit Union Association responded to the Prime Minister on changes to the Canada Emergency Business Account (CEBA)

Changes will include a program expansion to include sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.

The Prime Minister also indicated that the government is working on solutions for new businesses that have not yet filed a tax return and businesses operating out of personal bank accounts.

Changes are anticipated mid June.

How to Apply

Note it could take up to 10 business days to process your application.

Please fill out the Canada Emergency Business Account on EKC’s MemberDirect online banking, on a desktop/laptop computer only (no tablet or mobile phone), navigate to Account Services and look for the CEBA link and that will take you to the form.

You will need:

  • CRA Business Number (15 digits), as reported at the top of your 2019 T4 Summary of Renumeration (T4SUM)
  • employment income reported in Box 14 of your 2019 T4SUM
  • 2019 T4SUM when requested upon audit

Please contact:

Michelle Strickland
Commercial Sales Representative
Dir 250.417.4721
mstrickland@ekccu.com

Frequently Asked Questions for Canada Emergency Business Account (CEBA)

What is the Canada Emergency Business Account (CEBA)?

  • CEBA is a small businesses loan to help the business 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
  • Launched by the Government of Canada and it has been implemented by eligible financial institutions, like EKC, in cooperation with Export Development Canada (EDC).
  • It is a $25 billion program to provide interest-free loans of up to $40,000 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 25 percent (up to $10,000).

Who is eligible for the Canada Emergency Business Account?
EKC business members, including small businesses and not-for-profits, that meet each of the following criteria will be eligible:

  • must be a business (i.e., not a holding company) in operation before March 1, 2020.
  • must demonstrate that you paid between $20,000 to $1.5 million in total payroll in 2019.
Expanded Eligibility for Applicants with Payroll Lower than $20,000:
  • 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

How do I apply for the Canada Emergency Business Account?
Please fill out the Canada Emergency Business Account on EKC’s MemberDirect online banking, on a desktop/laptop computer only (no tablet or mobile phone), navigate to Account Services and look for the CEBA link and that will take you to the form.

Is there a deadline for completing an application at my primary financial institution and for uploading supporting documents?

  • You must complete the CEBA application at your primary financial institution by latest October 31st, 2020.
  • After completing the application with your financial institution, you must upload supporting documentation.
  • It is recommended that you provide your supporting documents through the application-demande.ceba-cuec.ca site as soon as you are directed to do so by your financial institution.
  • Supporting documentation is a critical part of the application processes and delays in providing this information can result in a delay in the pre-funding eligibility validation and funding process.

What do I need to provide to EKC?

  • Your CRA Business Number (15 digits), as reported at the top of your 2019 T4 Summary of Renumeration (T4SUM)
  • employment income reported in Box 14 of your 2019 T4SUM
  • 2019 T4SUM when requested upon audit

How can I use the funds?
You must agree to use the funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance and property tax, as per the requirements of the program set out by the Government of Canada.

Do I have to be an EKC member?
Yes, you must be a current EKC business member with an active business operating account, EKC must be your primary financial institution and your account must have been opened prior to March 1, 2020.

And you must apply for CEBA only from your primary financial institution. Applying for this benefit at more than one financial institution may result in prosecution by the federal government.

How can I get my 2019 T4SUM Summary of Remuneration?
Contact the Canada Revenue Agency for your 2019 T4SUM Summary of Remuneration Paid.

How long will it take for the funds to show up in my account?
Your application will be reviewed for eligibility and submitted to the Federal Government for funding. This entire process will take up to 10 business days from the date of your submission. Upon approval, you’ll receive a confirmation email from EKC, and the funds will be deposited into your existing business account.

Who do I contact if I do not qualify for the loan or I am declined?
Export Development Canada will be the administrator of the government’s eligibility criteria and is creating an appeals process. For more information, visit cebaquestions.ca

Can I apply if I am a sole proprietor who uses a personal account for my business?
No, CEBA is only available to business members who meet the eligibility criteria.

Can I apply for CEBA for multiple businesses?
Yes, each business that meets the eligibility criteria may apply for CEBA.

Can I still apply if I have other loans at EKC?
Yes, you can still apply if you have other loans with EKC that is in good standing and if your business meets the eligibility requirements for CEBA.

My business requires the consent of more one signatory to commit an action, can I still apply?
Yes, please ensure that only the authorized signer of your EKC business account applies. We cannot accept multiple applications from the same business account.

What will my loan payments be?

  • The loan is interest-free until December 31, 2022. Also, no principal repayments are required during this period unless you are seeking to repay $30,000, or 75% of the loan, to qualify for the $10,000 forgiveness feature.
  • If you choose to extend the loan beyond this date, an interest rate of 5% will apply during the extension period. We’ll provide you more information on interest payments during the extension period once the program is in place.
 

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