Canada Emergency Business Account 3.0 Now Available

The new Canada Emergency Business Account (CEBA), which was announced by the Government of Canada on March 27th, 2020 will provide up to $40,000 to small businesses and not-for-profits as an interest-free loan. The intention of this loan is to help cover their operating costs during a period where revenue may be reduced. Below is some some information to help you get ready.

WHAT IS THE CEBA LOAN?

  • $40,000 interest-free loan to help you cover operating costs you were not able to defer because of COVID-19
  • $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is repaid on or before December 31, 2022
  • If the loan cannot be repaid by December 31, 2022 it can be converted into a 3-year loan with an interest rate of 5%
  • Once your loan application has been reviewed and submitted, the process for funding will take up to 7 days from completion.
  • If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.

WHAT IS THE ELIGIBILITY CRITERIA?

The eligibility criteria are as follows, per the Government of Canada’s requirements:

  • You are a Canadian operating business in operation as of March 1, 2020.
  • You have a federal tax registration.
  • Your total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000. For applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year:
    • You have a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return.
    • You have eligible non-deferrable expenses between Cdn.$40,000 and Cdn.$1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.
  • You have an active business chequing/operating account with the Plainsview Credit Union, which is your primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
  • You have not previously used the Program and will not apply for support under the Program at any other financial institution.
  • You acknowledge your intention to continue to operate your business or to resume operations.
  • You agree to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
ITEMS TO HAVE READY WHEN YOU APPLY:
Visit http://ceba-cuec.ca/ for further information on what you might need to have to ready to apply.

As your trusted financial advisors, we’re here for you. Your financial wellbeing is our top priority and we are committed to providing flexible solutions to help you through this challenging time. If you have further questions, please reach out to your local branch.