The Canada Emergency Business Account (CEBA) deadline for applications is approaching. All applicants have until March 31, 2021, to apply for the total $60,000 CEBA loan or the additional $20,000 expansion.
Reminder of what it is: CEBA launched in April 2020 and intends to support businesses by providing financing for their expenses that they are unable to avoid or defer. It provides interest-free loans of up to $60,000 to small businesses and not-for-profits. Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate (25% on the first $40,000, plus 50% on amounts above $40,000 and up to $60,000).
Who can apply: Small businesses and charities and not-for-profit organizations that are actively carrying on a business in Canada. This is inclusive of small businesses with no payroll, unincorporated sole proprietors who earn their income directly, and family-owned businesses who pay family members with dividends.
- Create a business bank account at their primary institution prior to applying for CEBA
- Be in operation on or prior to March 1, 2020 with an active Business Number (BN) with the Canada Revenue Agency (CRA);
- Have not previously used the CEBA and will not apply under the program at any other financial institution. However, If an organization applied for a $40,000 loan, as of December 4, 2020 they are able to apply for the additional $20,000 loan;
- Must intend to continue to operate its business or to resume operations.
There are two streams under which an organization can apply – the Payroll Stream and the Eligible Non-Deferrable Expense Stream. Be sure to apply before the Canada Emergency Business Account deadline.
How to apply: Apply through your organization’s financial institution website.
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