The Canada Emergency Business Account for Businesses and Nonprofits

LAST UPDATED APRIL 20, 2020

The Government of Canada’s Emergency Business Account (CEBA) has been launched to provide immediate support to businesses and nonprofits across Canada who are facing a cash flow crisis due to COVID-19.

The new CEBA provides interest-free loans of up to $40,000 to small businesses and nonprofits to help cover their operating costs where revenues have been temporarily, yet severely reduced.

Eligibility

The Government of Canada has made the eligibility requirements as simple as possible for applicants. Applicants are required to:

• Be a Canadian operating business or nonprofit in operation as of March 1, 2020.

• Hold a federal tax registration.

• Demonstrate that they’ve paid between $20,000 and $1,500,000 in total payroll in 2019.

• Have an active business chequing/operating account with the Lender, which is their primary financial institution. The account must have been opened on or prior to March 1, 2020, and was not in arrears on existing borrowing facilities with the Lender by 90 days or more as of March 1, 2020.

• Acknowledge their intention to continue to operate the business or to resume operations. Funds from this loan must only be used to pay non-deferrable operating expenses such as payroll, rent utilities, insurance, property tax, and regularly scheduled debt services.

Lenders may have separate criteria – please ensure to discuss your organization’s specific requirements with your financial institution.

Repayment Schedule

The $40,000 interest-free loan can be repaid until December 31, 2022. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% or up to $10,000.

How to Apply

CEBA is now taking applications. Nonprofits wishing to apply for CEBA should contact their financial institution.

For more information on the Canada’s Emergency Business Account, click here.