Applications are opening soon for small businesses to ensure they have what they need to cover their operational costs under the current circumstances as the province begins to reopen. Small businesses and not-for-profits can apply trough the Canada Emergency Business Account (CEBA) for an interest free loan up to $40,000 to assist with operating costs while in periods of decreased revenue as a direct result of the COVID-19 pandemic.
To qualify for CEBA the small business or not-for-profit must meet the following criteria:
- Be a tax registered Canadian operating business in operations as of March 1, 2020
- Total employment income paid in 2019 is between $20,000 and $1,500,000
- The borrower has an active business account with Lender of the loan, who is also their primary financial institution
To apply, small businesses and not-for-profits should contact their financial institutions directly, and can take a look at the website below for a list of participating financial institutions in the CEBA program.
The CEBA funds can be used on:
- Any operating expenses that cannot be deferred, this includes but it not limited to, payroll, rent, utilities, debt payments and property taxes.
- However, they cannot use the debt for refinancing of current debt, payment of dividends or for increase in management compensation
Please see the CEBA Website for more information: https://ceba-cuec.ca/