February 25, 2021

Canada Emergency Business Account Deadline

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 […]

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.

Applicants must:

  • 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.

Learn more about the CEBA loan by clicking here

As always, if you have any questions please reach out to your trusted Catalyst Advisor or inquire@thecatalystgroup.ca

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