On March 22, 2021, the Government of Canada announced that the deadline for Canada Emergency Business Account (CEBA) applications is extended from March 31 to June 30, 2021.
This deadline extension applies to any new applications for CEBA loans of $60,000 or to new applications from businesses that intend to apply for the additional $20,000 (that have already received the original $40,000). As Canada’s economy continues to deal with public health restrictions, reduced hours, and reduced demand, this extension will allow more businesses to access the support they need.
The extension of the CEBA application deadline and other adjustments that the government has made demonstrate the Canadian government’s commitment to support small businesses during this challenging and uncertain time. Below are some quick facts about CEBA copied directly from the Government of Canada Website:
- Launched on April 9, 2020, CEBA provides interest-free loans of up to $60,000 to small businesses, to help cover their operating costs—such as rent, utilities and insurance—during a period where their revenues have been temporarily reduced. These loans are partially forgivable as repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of up to 33 percent (up to $20,000).
- As of March 18, 2021, more than 850,000 CEBA loans have been approved, representing nearly $45 billion in credit disbursed.
- To qualify for CEBA, applicants must meet either the payroll eligibility criteria or they must demonstrate a minimum of $40,000 in eligible non-deferrable expenses. In addition to requiring an active business number with an effective date of registration on or prior to March 1, 2020, applicants with payroll lower than $20,000 will still need to show that they meet the following CEBA eligibility requirements: an income tax return with the Canada Revenue Agency with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018; and eligible non-deferrable expenses of between $40,000 and $1.5 million, after taking into consideration other federal COVID-related supports.
- To apply for CEBA or to learn more about the program, businesses can contact their primary financial institution.
Read more about CEBA, it’s extension, and additional support for small businesses at https://www.canada.ca/en/department-finance/news/2021/03/government-announces-extension-of-canada-emergency-business-account-to-help-small-businesses.html.
If you are a business owner seeking financial advice, we are here to help. Contact Quarry Wealth today to learn about more ways you can improve your business’ financial situation during this unprecedented time.