Businesses that previously didn’t qualify for the Canada Emergency Business Account may now have a second chance as Justin Trudeau released that there will be some revisions to help accommodate more Canadian businesses struggling during the current COVID-19 outbreak.
The program was implemented on April 9, 2020 to provide interest free loans up to $40,000 to not-for-profit or small business to help them cover their operating costs since revenues have dropped. If businesses can pay off the loan by December 31, 2022, they will be provided a loan forgiveness of 25% up to a maximum of $10,000.
The funds of the loan are to help struggling businesses cover non-deferrable expenses, such as, rent, payroll, utilities, other financing payments, insurance, etc.
Businesses wanting to apply for this program should contact the financial institution they currently use. Please visit Government of Canada-CEBA to check if your financial institution is participating in the program.
Original requirements for businesses to be eligible for CEBA
Canadian business that has operated as of March 1, 2020.
Registered for Federal tax.
Employment income from 2019 was between $20,000 and $1,500,000 Canadian Dollars.
Business bank account opened and in good standing prior to March 1, 2020.
Has not previously applied for CEBA through another financial institution.
Agrees to use the funds to continue to operate the business or resume previous operations.
Must also agree to take part in surveys after approval of the CEBA loan.
The new eligibility will now include businesses with payroll below $20,000. These businesses will require to have filed a 2018 or 2019 tax return and have non-deferrable expenses between $40,000 and $1,500,000. These expenses will be subject to verification and audit by the GOC.
Please visit Government of Canada-CEBA to keep updated on revisions to the program and for complete details on the CEBA application process and restrictions.
You may also click here for the complete announcement and associated links.
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