On Tuesday and Wednesday, the federal government announced an expansion of the Canada Emergency Business Account (CEBA) loan program and released more details on the Canada Emergency Commercial Rent Assistance (CECRA) program.
Canada Emergency Business Account (CEBA)
The loan program will be expanded for those:
Who are sole owner-operators;
That depend on contractors; and
That are family businesses that pay employees by dividends rather than payroll.
The loan program will be modified to become available to new businesses (those which have never filed a tax return) and businesses that do not have 'business accounts' at the bank, but operate through personal accounts.
To qualify under the expanded eligibility criteria, applicants with payroll less than $20,000 would need:
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; and
Eligible non-deferrable expenses between $40,000 and $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities and insurance.
The CECRA page has been updated again to include additional information.
Application portal opens May 25.
Rent support for larger employers is being developed.
Should you have any questions or feedback, please reach out to myself or the team. As always, we are here to help and support you.
Caveat: The information in this publication is current as of the time it was written. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Deuzeman & Associates to discuss these matters in the context of your particular circumstances. Deuzeman & Associates does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.