Canada Emergency Benefit Account

Canada Emergency Benefit Account (CEBA)

What is it?

The Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. This program has been implemented by banks and credit unions in collaboration with Export Development Canada.

The funds from this loan shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.

Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Who is eligible?

The following are the eligibility requirements for CEBA:

  • The Borrower is a Canadian operating business in operation as of March 1, 2020.
  • The Borrower has a federal tax registration.
  • The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000.
  • The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
  • The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
  • The Borrower acknowledges its intention to continue to operate its business or to resume operations.
  • The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents

NOTE: The following are excluded from benefit:

  • Government organizations or bodies, or an entity owned by a government organization or body;
  • Unions, charitable, religious or fraternal organizations or entities owned by such an organization or if they are, they are a registered T2 or T3010 corporation that generates a portion of their revenue from the sales of goods or services;
  • Entities owned by any Federal Member of Parliament or Senator;
  • Entities which promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age, or mental or physical disability, contrary to applicable laws.

How do I apply?

Small businesses and not-for-profits should contact their financial institution to apply for these loans.

A full list of the 232 participating financial institutions can be viewed here.

For more information: https://ceba-cuec.ca/