Canada Emergency Business Account
Original Post Date: June 3, 2020.
Canada Emergency Business Account (CEBA)
The information contained in this email is current to the date and time sent and includes our interpretations of publicly-available information that is subject to change during this rapidly-evolving pandemic. As more information becomes available, we will continue to provide you updates.
For full details related to CEBA please visit the following link: https://ceba-cuec.ca/
Items of Note:
- Interest-free loans of up to $40,000 (until end of 2022) for small businesses and non-profits to help cover operating costs where revenues have been reduced
- Ability to demonstrate wages of $20,000 – $1.5M in total payroll during 2019.
- Or for applicants with $20,000 or less in total employment income paid in the 2019 calendar year:
- The borrower has a CRA business number and has filed a 2018 or 2019 tax return
- The borrower has eligible non-deferrable expenses between $40,000 and $1.5M.
- Or for applicants with $20,000 or less in total employment income paid in the 2019 calendar year:
- Eligible non-deferrable expenses could include costs such as payroll, rent, property taxes, utilities, insurance, and regularly scheduled debt service. Expenses will be subject to verification and audit by the Government of Canada.
- Funds may not be used to fund any payments or expenses such as prepayment / refinancing of existing indebtedness, payment of dividends, distributions, or increases in management compensation.
- The borrower must have an active business / operating account with the Lender, which was active on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities.
- The borrower acknowledges its intention to continue to operate its business or to resume operations
- Application is digital through your existing bank (i.e. that has your operating account)
- Up to $10,000 may be forgiven if repaid by Dec.31, 2022, and if not repaid by that date converts to a 3-year term loan @ 5%
Ford Keast LLP will continue to monitor government releases and will share information that impacts your personal and business income tax matters. We encourage clients to continue submitting documents to us ELECTRONICALLY, where possible. Our staff remain working on files and we will process your documents as timely as possible.
Please contact your Ford Keast representative to discuss this article or address any other concerns you may have at this time.