Government Announces Extension of Canada Business Emergency Account to Help Small Businesses
BRITISH COLUMBIA – New Canada Emergency Business Account (CEBA) applications are extended from March 31 to June 30, 2021, the Ministry of Finance and the Minister of Small Business, Export Promotion and International Trade recently announced.
This time extension applies to all new requests for a CEBA loan of $ 60,000 or to new requests from businesses that have already received the loan of $ 40,000 and intend to request the additional $ 20,000.
The extension will allow more businesses to access the support they need as the Canadian economy continues to face localized and, for a number of businesses, hourly public health restrictions. reduced opening times or reduced demand for services. The extension of the application deadline to June 2021 also aligns the CEBA with the timelines of other federal government business support programs.
The extension of the application deadline and other adjustments the government has made to the CEBA, such as the introduction of the non-deferral expense stream and increasing the loan amount from $ 40,000 to $ 60,000, demonstrate the government’s commitment to supporting small businesses.
Launched on April 9, 2020, the CEBA offers interest-free loans of up to $ 60,000 to small businesses, to help cover their operating costs, such as rent, utilities, and insurance, for a period of time. period when their income was temporarily reduced. These loans are partially repayable, as repayment of the loan balance on or before December 31, 2022 will result in a loan forgiveness of up to 33% (up to $ 20,000).
As of March 18, 2021, more than 850,000 CEBA loans have been approved, representing nearly $ 45 billion in disbursed credit.
To be eligible for the CEBA, candidates must meet the eligibility criteria of the payroll or justify a minimum of $ 40,000 in eligible expenses that cannot be carried forward. In addition to requiring an active business number with an effective registration date no later than March 1, 2020, applicants with a payroll of less than $ 20,000 will still need to prove that they meet the eligibility requirements. the following from the CEBA: a tax return with the Canada Revenue Agency with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018; and eligible non-deferral expenses of between $ 40,000 and $ 1.5 million, after factoring in other federal supports related to COVID.
To apply for CEBA or to learn more about the program, companies can contact their primary financial institution. Information can also be found on the program’s website.