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:
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