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 $60KThe 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.
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.