Additional Funds Available through the Canada Emergency Business Account (CEBA)
As part of the 2020 Fall Economic Statement released by the Government of Canada on November 30, 2020, the maximum amount available under the Canada Emergency Business Account (CEBA) has been increased by an additional $20,000 per qualifying business.
Up to $10,000 of the additional $20,000 loan is forgivable if the loan is repaid by December 31, 2022. Therefore, qualifying businesses now have access to a total of $60,000 in interest-free loans with up to $20,000 being forgivable if the balance (i.e., $40,000) is paid back by December 31, 2022.
The government of Canada has also extended the deadline for applying for a CEBA loan to March 31, 2021. Applications are to be done at your financial institution. If you previously applied for the $40,000 CEBA loan and would like to benefit from the additional $20,000 CEBA loan, you will need to submit a new application and attestation to the financial institution that provided you with your original CEBA loan.
It is important to note that one of the conditions for the maximum loan forgiveness to be obtained is that the full amount of the loan must be drawn and used towards “Eligible non-deferrable Expenditures”. This is particularly important if the financial institution has setup CEBA as a line of credit and not advanced the full amount of the loan to the qualifying business. We advise that qualifying businesses who have obtained a CEBA loan verify that the full amount has been advanced by the financial institution before March 31, 2021.
In addition, it is imperative that you carefully read the details within the attestation of the loan application to ensure you meet the details outlined for eligibility.
For more details on frequently asked questions relating to the CEBA program, click here.
If you would like our assistance in applying for the expanded CEBA loan, be sure to contact us!
