BRITISH COLUMBIA – The new Canada Emergency Business Account (CEBA) applications are being extended from March 31 to June 30, 2021, recently announced by The Ministry of Finance and and the Minister of Small Business, Export Promotion and International Trade.
This deadline extension applies to any new applications for CEBA loans of $60,000 or to new applications from businesses that have already received the $40,000 loan and intend to apply for the additional $20,000.
The extension will allow more businesses to access the support they need as Canada’s economy continues to deal with localized public health restrictions and, for a number of businesses, reduced opening hours or reduced demand for services. Extending the application deadline to June 2021 also aligns CEBA with the timelines of other federal government support programs for business.
The extension of the application deadline and other adjustments that the government has made to CEBA, such as introducing the non-deferrable expense stream and increasing the loan amount from $40,000 to $60,000, demonstrate the government’s commitment to stand by small businesses.
Launched on April 9, 2020, CEBA provides interest-free loans of up to $60,000 to small businesses, to help cover their operating costs—such as rent, utilities and insurance—during a period where their revenues have been temporarily reduced. These loans are partially forgivable as repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of up to 33 percent (up to $20,000).
As of March 18, 2021, more than 850,000 CEBA loans have been approved, representing nearly $45 billion in credit disbursed.
To qualify for CEBA, applicants must meet either the payroll eligibility criteria or they must demonstrate a minimum of $40,000 in eligible non-deferrable expenses. In addition to requiring an active business number with an effective date of registration on or prior to March 1, 2020, applicants with payroll lower than $20,000 will still need to show that they meet the following CEBA eligibility requirements: an income tax return with the Canada Revenue Agency with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018; and eligible non-deferrable expenses of between $40,000 and $1.5 million, after taking into consideration other federal COVID-related supports.
To apply for CEBA or to learn more about the program, businesses can contact their primary financial institution. Information can also be found on the program’s website.
