Last week, the federal government provided more details regarding the Canada Emergency Business Account (CEBA) loan program.
Canada Emergency Business Account (CEBA)
- The CEBA website has been updated to include addition FAQ questions focusing on the details and differences between applying under the original “Payroll Stream” and the expanded “Non-Deferrable Expenses Steam”.
- Ability to apply under the expanded program was supposed to begin Friday June 19, 2020 but has been delayed.
- Applications under the Payroll Stream (total employment income paid to employees in 2019 greater than $20,000 and less than $1,500,000) will be completed directly through the financial institution in which your business holds its primary business chequing/operating account. The Government of Canada will notify your financial institution and provide funding for your CEBA loan.
- Applications under the Non-Deferrable Expenses Stream (total employment income paid to employees in 2019 of $20,000 or less and 2020 Eligible Non-Deferrable Expenses – subject to adjustments for support or subsidies under other Government of Canada COVID response programs – greater than $40,000 and less than $1,500,000 will follow a two-step process:
- Step 1: Businesses will initiate applications directly at their primary financial institution where they hold their primary business chequing/operating account. The financial institution will then direct applicants to Step 2 of the application process.
- Step 2: Following the initial application through your financial institution, applicants will be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application. If successful, the Government of Canada will notify your financial institution and provide funding for your CEBA loan.
- Additional documents required will include:
- The name of the financial institution where you submitted your application;
- Your 9-digit business number (same number you used in your application with your financial institution); and
- Electronic or paper copies of receipts/invoices/agreements to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.
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.