The Canada Emergency Business Account (CEBA) loan applications for $40,000 are opening tomorrow. These will be online applications and will be launched by all banks. Please make sure to apply through your Primary Bank only.
Information Required In the Application
- You will need to put in your correct account number as the loan amount will be deposited in your account.
- Make sure that your branch number is correct too.
- Notes regarding correct account numbers will be available on the application when you hover over account information.
- You will also need to put in your business payroll number.
Small businesses and not-for-profits that meet the following requirements will be eligible for this loan.
- Must be a business (i.e. not a holding company) in operation on March 1, 2020
- Must agree to use the funds to cover unavoidable operating costs such as payroll, utilities, rent, property tax and insurance as set by the Government of Canada
- Must have an active business operating account which should have been opened before March 1, 2020
- Must apply through your primary bank
- Must show that you paid between $50,000 and $1 Million in total payroll in 2019. For this you will need to provide the following
- Employer account number as shown at the top of the 2019 T4 summary
- Employment income reported in Box 14 of the 2019 T4
- 2019 T4 SUM when requested upon audit
Features of CEBA
- It is a $40,000 interest free loan till December 31, 2022.
- 25% of the loan ($10,000) is eligible for forgiveness if $30,000 of the loan is fully repaid on or before December 31,2022.
- If it is not repaid by December 31, 2022 then it can be extended for an additional 3 years at an interest rate of 5% per annum.
- The loan can be prepaid at any time without any penalties
Please note that this a government loan program. Your bank will not have the ability to help you with verifying your eligibility and they will not be able to help you regarding any appeals.
For specific questions regarding your eligibility, please contact your Licensed Public Accountant or refer to the government website.