CEBAby Rob Sysak, December 8, 2020
- CEBA provides interest-free, partially forgivable, loans of up to $40,000, to small businesses and not-for-profits, that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes, and wages.
Eligibility of CEBA
1. The Payroll Stream (Applicants with employment income paid in the 2019 calendar year between Cdn. $20,000 and Cdn.$1,500,000)
2. The Non-Deferrable Expense Stream (Applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year): In this case, you must have non-deferrable expenses of more $40,000 per year which include Rent, utilities, contractor expenses loan payment etc.
In addition, every applicant must meet the following criteria:
- Has an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
- Has an active business chequing/operating account with the Lender at the time of applying for CEBA. Note: If Borrower currently does not have a business chequing/operating account the Borrower must create one at their primary financial institution before applying for CEBA.
- Has not previously used the Canada Emergency Business Account Program (the “Program”) and will not apply for support under the Program at any other financial institution.
- Intends to continue to operate its business or to resume operations.
Now CRA announced the extension of the loan from $40,000 to $60,000. Application are processed using the online banking. You must apply in the same bank account where you submitted the original application.
If you have already applied for the CEBA $40,000 loan:
· Go to your online banking and follow the steps to submit the application for extension of the loan.
· You may be required to provide your business number for the application, please keep it handy when you are filling up the application.
If you have not applied for the CEBA:
· Review the detail on CRA’s website (Canada Emergency Business Account (CEBA) (ceba-cuec.ca) to check the eligibility of the CEBA.
· If you are eligible, complete the application using online banking.
Please note the following changes to CEBA requirements and deadlines:
- As of December 4, 2020, CEBA loans for eligible businesses will increase from $40,000 to $60,000.
- Applicants who have received the $40,000 CEBA loan may apply for the $20,000 expansion, which provides eligible businesses with an additional $20,000 in financing.
- All applicants have until March 31, 2021, to apply for $60,000 CEBA loan or the $20,000 expansion.
If you have already applied for CEBA or have questions you can contact the CEBA Call Centre at 1-888-324-4201. An agent will return your call within 3 business days between Monday and Friday from 10:00 am to 9:00 pm EST.
If you need help in completing the application, please feel free to contact me at 416-305-7913 or email firstname.lastname@example.org
Deepak Sharma, MBA, CPA, CGA
DSharma CPA Professional Corporation