ceba update

Canada gives CEBA an update and there's now new eligibility requirements

CEBA just got an update so now more small businesses in Canada can finally apply for the Canada Emergency Business Account (CEBA) after the rollout of the expanded iteration of the program was delayed earlier this month.

Through the initiative, the federal government provides businesses with a $40,000 interest-free loan, 25 per cent of which is forgivable.

When it first came to be in March, the CEBA was made available to any business or not-for-profit in Canada that paid between $50,000 and $1 million in total payroll last year.

Since then, the criteria for who can apply for the loan has been changed twice: in mid-April, the window for how much qualifying businesses had to have spent on payroll in 2019 was extended in both directions, and in May, it was announced that owners of more types of businesses would be able to apply.

As of June 26, previously ineligible groups like owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, businesses that rely on contractors (like gyms that hire personal trainers on contract), and family-owned businesses that pay employees through dividends can finally receive the Ottawa-backed loan from a major Canadian bank such as TD or Scotiabank.

More than 220 other financial institutions will also start offering it in the coming weeks.

One caveat is that applicants must have had non-deferrable expenses between $40,000 and $1,500,000 so far this year.

The full eligibility requirements for the CEBA are currently:

  • The borrower is a Canadian operating business in operation as of March 1, 2020.
  • The borrower has a federal tax registration.
  • The borrower’s total employment income paid in the 2019 calendar year was between $20,000 and $1,500,000. For applicants with $20,000 or less in total employment income paid in the 2019 calendar year:
    • The borrower has a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return.
    • The borrower has eligible non-deferrable expenses between $40,000 and $1,500,000. (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.)
  • The borrower has an active business chequing/operating account with the lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the lender by 90 days or more as of March 1, 2020.
  • The borrower has not previously used the program and will not apply for support under the program at any other financial institution.
  • The borrower acknowledges its intention to continue to operate its business or to resume operations.
  • The borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
Lead photo by

Justin Trudeau


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