COVID-19, CRA & Revenu Québec, Self-Employed, Tax News

Canada Emergency Business Account (CEBA)

Canada Emergency Business Account (CEBA) and Other Financial Support for Business

What is the Canada Emergency Business Account?

The newly created Canada Emergency Business Account (CEBA), will provide capital to small businesses who need it to cover their operating costs, as a result of the COVID-19 pandemic.

This program will provide loans of up to $40,000 to small businesses and not-for-profits.  The loans will be interest-free for a period of one year, with the potential of up to $10,000 of loan forgiveness (25%), if the balance of the loan is repaid on or before December 31, 2022.

What Businesses will qualify?

CEBA will benefit many Canadian small businesses who:

  • Demonstrate that they have paid $50,000 to $1M, in total payroll in 2019

How to apply for the CEBA?

Eligible businesses interested in applying for the CEBA will apply directly with their financial institutions.  This program is implemented by the eligible financial institutions, in cooperation with Export Development Canada.

 

Other Financial Support

In addition to the CEBA, the Business Credit Availability Program was also established.  It will help support access to financing for Canadian businesses.

Export Development Canada and the Business Development Bank of Canada are providing $65B of financial support, working closely with the private sector lenders.

What Businesses will qualify?

BCAP will benefit many Canadian small businesses who:

  • Have viable business models, and
  • Would otherwise be restricted to financing

How to apply for the BCAP?

Eligible businesses interested in applying for the BCAP will apply directly with their financial institutions.  This program is implemented by the eligible financial institutions, in cooperation with Export Development Canada.

 

For more details on income support and other benefits as part of the Federal Government’s Economic Response Plan for COVID-19, click here.

See also our COVID-19: Tax Info Centre, from our TurboTax Support team, answering many FAQs on this topic and more.