UPDATE: CEBA Application is now Open – CEBA Support Expanded from $40K to $60K

UPDATE: CEBA Application is now Open – You can now apply at the Financial Institution where you have your Business Bank Account. 

As the world continues to feel the after-effect of the first wave of the COVID-19 pandemic, which led to the closure of many businesses, and employees laid off; the government, in its obligatory means of intervening in issues like this, has commenced some economic recovery programs to mitigate the effect of the virus on businesses. Well, Canada didn’t escape this scourge; her government responded promptly through different economic programs, one of which is CEBA.

When can you Apply for Expanded CEBA Support of $40K to $60K

The Canada Emergency Business Account (CEBA) is an initiative by the Canadian government on October 26, 2020, to assist eligible Canadian businesses that were affected by the COVID-19 pandemic. The program permits qualified businesses operating personal bank accounts to apply. This program will further help companies retain employees by assisting them in paying some of their rents and fulfilling (some) other financial responsibilities.

As for those whom their businesses have been directly affected by the effect of the pandemic, the fund will as well help them get back in business in no time. The deputy Prime Minister and Finance Minister, Hon. Chrystia Freeland while announcing the program made it clearer that the government aims to introduce targeted support to (what he preferred calling) “hard-hit businesses” and organizations who are currently experiencing a drop in revenue as a result of the pandemic. The program doesn’t just end at providing funds for these businesses, but also offer legislative support that will help these businesses scale through the second wave of the pandemic. It is also expected to cover some of their costs, to enable them to continue serving their environment in their various capacities. At the same time, strong efforts are made for a more effective, lasting economic recovery.

How to Apply for Expanded CEBA Support of $40K to $60K

Though it was officially launched on April 9, 2020, the whole idea behind the program is listed as:

  • To provide easy-to-access mortgage support and rent till June 2021 for affected businesses. This rent subsidy is meant to be paid directly to tenants while they continue to provide support to the owners of these properties. This support also extends to charities and other nonprofit organizations.
  • To top up the Canada Emergency Rent Subsidy by 25%, and 65% for qualifying public health authority, and businesses grossly affected as a result of the decision made by local public health centres.
  • To help qualified individuals access up to $20,000 -$40,000 CEBA loan. It doesn’t end there, half of this loan will be forgivable if it is repaid by December 31, 2022.
Now, the good news, there has been an increase in the CEBA loan from $60,000 – $40,000. For participating businesses, a total of $20,000 will be forgiven should they pay off the loan before December 31, 2022. And note, that a testimony of the impact of the pandemic on your business will also be required to qualify you for additional financing.

CEBA is designed to provide zero-interest for the beneficiaries, and there are requirements for the exclusion of borrowers, such condition includes:
  • If the business organization is owned by a senator or a member of Parliament.
  • If the business doesn’t promote racism, hate, religion, discrimination, violence, or any other thing contrary to the law of the land.
  • If is a government-owned organization or a body owned by any government organization.
It will be worthy to note that the Canadian government has spent over $1.8 billion paying rent support for small businesses via the Canada Emergency Commercial Rent Assistance (CECRA). This rent assistance has assisted to over 130,000 small businesses and helped over 1.18 million employees retain their jobs. It has been reported that over 765,000 CEBA loan applications have been approved in early October amounting to more than $30 billion. Meanwhile, the application deadline for the CEBA program has been extended to December 31, 2020.
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