CEBA program details is something that many Canadian business owners are looking for today as many businesses have had to shut their doors due to the COVID-19 pandemic. However, due to the stress of their business shutting down and the financial burden that follows, many do not know where to start and feel overwhelmed. Hopefully, this article can help make things clearer.
CEBA Program Details – What is CEBA?
CEBA stands for the Canada Emergency Business Account and is a federal government loan program that provides small and medium-sized businesses with a limited-time, interest-free loan of up to $40,000. For more details on CEBA visit https://ceba-cuec.ca/. Here are some of the details of the program as provided to me by one of the banks that I deal with First Calgary below:
The CEBA Loan Includes:
- $40,000 loan at 0% interest until December 31, 2022
- No minimum monthly principal payments required until December 31, 2022
- $10,000 loan forgiveness is available, provided outstanding balance is $40,000 at December 31, 2020, and $30,000 is paid back between January 1, 2021 and December 31, 2022.
- Payments can be voluntarily made at any time without fees or penalties
CEBA Program Details – Who is Eligible?
Who is eligible to apply for the CEBA program? Here is the list of criteria from the Government of Canada’s website below:
- The Borrower is a Canadian operating business in operation as of March 1, 2020.
- The Borrower has a federal tax registration.
- The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000.
- The Borrower has an active business chequing/operating account with the Lender, which is its 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.
- The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
- Borrower acknowledges its intention to continue to operate its business or to resume operations.
- The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
CEBA Program Details – How to apply?
You apply through your financial institution and most of them should have this program available to you. You can either call or go in to speak to someone about it. However, an even easier way is to apply online at your financial institution. For example if you go to First Calgary’s website, you are presented with the following details below:
HOW DO I APPLY FOR CEBA?
For your convenience you can apply from home using our online application. Our team of advisors will contact you once your application has been received to discuss next steps.
FOR A SPEEDY EXPERIENCE, PLEASE HAVE THE FOLLOWING INFORMATION ON HAND:
2019 T4 Summary of Remuneration Paid (T4SUM) that shows an annual payroll of between $20,000 and $1.5 million (if you cannot locate your T4SUM, contact the Canada Revenue Agency to have them reissue it to you)
A 15-digit Canada Revenue Agency Number also shown on the T4SUM
Business contact information, including phone number and email address.
Finding out what you can apply for in this climate can be a challenge. However, it is important to know what options you have. For many small businesses, this program could be the difference between surviving or dying. So have a look and see if the CEBA program details fits you and your business. Because in this COVID-19 world, information is power.