Canada Emergency Business Account Update
On June 15, 2020, the CEBA website was updated to include additional FAQ questions. The additions focus on the the details and differences between the applying under the “Non-Deferrable Expenses Steam” as compared to the “Payroll Stream”. In a separate announcement, the Prime Minister stated that applications under the expanded program would commence on Friday, June 19, 2020.
Some businesses did not qualify for the $40,000 CEBA loan because they did not have $20,000 of wages paid in 2019. The government announced that the loan will now be available if the business meets certain conditions, one of which is that the borrower business has eligible non-deferrable expenses of between $40,000 and $1,500,000.
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.
- Wages and other employment expenses to independent (arm’s length) third parties;
- Rent or lease payments for real estate used for business purposes;
- Rent or lease payments for capital equipment used for business purposes;
- Payments incurred for insurance related costs;
- Payments incurred for property taxes;
- Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
- Payments for regularly scheduled debt service;
- Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.
Click here to read more frequently asked questions.