On March 27th, the Federal government announced the Canada Emergency Business Account to offer support to small and medium-sized businesses as they navigate the difficulties of the COVID-19 pandemic.
- The CEBA provides an interest free, government-guaranteed loan of $40,000 to help you pay for ‘non-deferable’ costs due to COVID-19
- 25% of the loan is eligible for complete forgiveness if you repay the remaining 75% before December 31, 2022
- If the loan cannot be repaid before December 31, 2022, it can be converted into a 3-year term loan at 5% interest.
Businesses and not-for-profits can apply if:
- They are an operating company registered in Canada as of March 1, 2020
- They have an annual payroll of between $50,000 and $1 million based on their 2019 T4SUM
The CEBA is available through Canada’s major banks and credit unions. Businesses should consult their own financial institution for application instructions, as they vary slightly between institutions.
