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Canada Emergency Business Account (CEBA)

Information on the Canada Emergency Business Account (CEBA)


SB Partners Admin on April 7, 2020 in COVID19

The application deadline for CEBA extended from August 31, 2020, to October 31, 2020.

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.


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/