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Canada Emergency Business Account (CEBA)

The application deadline for CEBA extended from October 31, 2020, to June 30, 2021.

What You Need to Know:

Canada Emergency Business Account (CEBA)


CEBA is administered through your business’s primary operating bank. Most banking institutions will send out instructions on how to apply.

*Update* On March 22nd, the CRA announced the following:

The government extended CEBA application deadline until June 30, 2021. Business owners can apply through their banks and credit unions. Previously, the deadline was March 31, 2021.

*Update* On October 26th, the CRA announced the following:

  • Canada Emergency Business Account (CEBA) will now be available to businesses that have been operating out of a non-business banking account (i.e. personal bank account).
  • To be eligible, businesses must have been operating as a business as of March 1, 2020, must successfully open a business account at a Canadian financial institution that is participating in CEBA, and meet the other existing CEBA eligibility criteria. The deadline to apply for CEBA is December 31, 2020.

*Update* On October 9th, the CRA announced the following:

  • An additional interest-free loan of up to $20,000 will be available (in addition to the original CEBA loan of $40,000). Half of this additional financing would be forgivable if repaid by December 31, 2022.

Who is eligible to receive the CEBA?

The eligibility criteria (for up to $40,000 in CEBA loans) are as follows, per the Government of Canada’s requirements:

  • Your business has been a registered and operational business on or before March 1, 2020.
  • The person enrolling for the Canada Emergency Business Account must have the ability and authority to bind the organization.
  • Your payroll expense is between $20,000 and $1.5 million.
    • Please note: Applicants with payroll lower than $20,000 would need:
      • a business operating account at a participating financial institution.
      • a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
  • Applicants with payroll expenses between $20,000 and $1.5 million will be required to provide the following information:
    • eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.
    • Your employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid.
    • Your employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid.
    • A copy of your 2019 T4 Summary of Remuneration Paid, if requested.
  • As per the requirements set out by the Government of Canada, you will agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax.
  • Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000)

How to prepare for the CEBA enrollment process:

Locate your 2019 T4 Summary of Remuneration Paid statement. You can also contact the Canada Revenue Agency to have them re-issue your 2019 statement. This will be required for the enrollment process.

What happens if a business has multiple owners?

The person enrolling on behalf of an organization must have authority to attest on behalf of the organization and bind the organization to the terms of the CEBA loan agreement.

FAQ:

https://ceba-cuec.ca/


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