CEBA requirements and deadlines have changed:
- As of December 4, 2020, CEBA loans for eligible businesses will increase from $40,000 to $60,000.
- Applicants who have received the $40,000 CEBA loan may apply for the $20,000 expansion, which provides eligible businesses with an additional $20,000 in financing.
- All applicants have until March 31, 2021, to apply for $60,000 CEBA loan or the $20,000 expansion.
Eligibility
Every applicant must meet the following criteria:
- Has an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
- Has an active business chequing/operating account with the Lender at the time of applying for CEBA. Note: If Borrower currently does not have a business chequing/operating account the Borrower must create one at their primary financial institution before applying for CEBA.
- Has not previously used the Canada Emergency Business Account Program (the “Program”) and will not apply for support under the Program at any other financial institution.
- Intends to continue to operate its business or to resume operations.
- Non-Deferrable Expenses Stream (Extended)
- Businesses with total employment income paid to employees in 2019 of $20,000 or less and 2020 Eligible Non-Deferrable Expenses (subject to adjustments for support or subsidies under other Government of Canada COVID response programs) greater than $40,000 and less than $1,500,000.
- Have eligible non-deferrable expenses between Cdn. $40,000 and Cdn. $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.
- Filed an income tax return with the CRA with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018.
- Payroll Stream (Original)
- Businesses with total employment income paid to employees in 2019 greater than $20,000 and less than $1,500,000.
- The Borrower is a Canadian operating business in operation as of March 1, 2020.
- The Borrower has a federal tax registration.
- The Borrower has a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return.
- The Borrower has an active business/ personal* chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to 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 Eligible Non-Deferrable Expense categories are the following
- Wages and other employment expenses to independent (arm’s length) third parties;
- Rent or lease payments for real estate used for business purposes;
- Rent or lease payments for capital equipment used for business purposes;
- Payments incurred for insurance-related costs;
- Payments incurred for property taxes;
- Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
- Payments for regularly scheduled debt service;
- Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.
- Payments incurred for materials consumed to produce a product ordinarily offered for sale by the Borrower.
How to Apply
- Contact your primary bank directly.
- Payroll Stream
- Provide your
- Payroll Business Number
- Box 14 on 2019 T4 Summary.
- Business bank account details (ex: business account number, business bank branch number)
- Provide your
- Non-Deferrable Expenses Stream
- Provide your
- The name of the financial institution where you submitted your application
- Your 9-digit business number (same number you used in your application with your financial institution)
- Electronic or paper copies of Receipts / Invoices / Agreements to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses. View valid document type here
- Provide your
- Accounting Plus would provide supporting documents base on your requirement.
Check Your Application
If you have already applied for CEBA and have questions, please contact the CEBA Call Centre at 1-888-324-4201. An agent will return your call within 3 business days between Monday and Friday from 10:00 am to 9:00 pm EST and can address the following types of questions:
- What is the status of my application?
- Why was my application declined?
- Why was my submitted document rejected?
FAQ
Who can apply for the $20,000 expansion?
Applicants with a $40,000 CEBA loan may apply for the $20,000 expansion.
I already repaid my original CEBA loan. May I apply for the $20,000 expansion?
Yes, you may apply for the $20,000 expansion at the financial institution that provided you with your original CEBA loan.
What if I run my business out of a Personal Bank Account?
Businesses that were active and operating as of March 1, 2020 but didn’t have a business bank account as of March 1, 2020 may now be eligible for the CEBA program. The steps for these businesses to access CEBA are:
- Visit and complete the Pre-screen Tool on https://verify-verifier.ceba-cuec.ca/
- Open a business chequing/operating account with your primary financial institution
- Apply for CEBA at your primary financial institution
- Follow instructions from your financial institution to complete all relevant parts of the CEBA application.
Source: https://ceba-cuec.ca/
