The federal government has announced a change to the Canadian Emergency Business Account.
CEBA has been expanded to allow for sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll to make application for the $40,000 loan, of which, $10,000 will be forgiven if paid back on or before December 2020.
For applicants with payroll lower than $20,000, eligibility criteria includes:
- a business operating account at a participating financial institution
- a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return
- eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance
To make an application for the expanded CEBA program, contact your financial institution. Both Banks and Credit Unions will be working with businesses to secure this funding.