Canada Emergency Business Account (CEBA) At-A-Glance

Posted on
April 27, 2020

Canada Emergency Business Accounts (CEBA)-at-a-glaance - Updated May 19, 2020

Prime Minister Trudeau, announced on May 19, 2020 an expansion to the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses.

The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.

To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:

  • a business operating account at a participating financial institution
  • a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
  • eligible non-deferrable expenses between $40,000 and $1.5 million. 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. Funding will be delivered in partnership with financial institutions. More details, including the launch date for applications under the new criteria, will follow in the days to come. The government will continue to work on solutions to help business owners and entrepreneurs who operate through their personal bank account, as opposed to a business account, or have yet to file a tax return, such as newly created businesses.


Support for Women Entrepreneurs

On May 16, 2020, Minister Ng announced that the Government of Canada will provide $15 million in additional funding to support women entrepreneurs through the Women Entrepreneurship Strategy (WES). This money will go directly to select organizations that are currently WES Ecosystem Fund recipients and will help women entrepreneurs through the COVID-19 pandemic.

In the coming weeks, this investment will help thousands of women entrepreneurs and business owners navigate this crisis. It will help ensure women across the country—whether they're a restaurant owner in Campbellton, New Brunswick, a manufacturer in Prince George, British Columbia, or a retailer in Rankin Inlet, Nunavut—get the support they need through things like business workshops, mentorship and skills training to adapt to a digital marketplace.

Empowering women-owned businesses across Canada remains a key priority, and the government will continue working hard to ensure women entrepreneurs are supported through the pandemic and into the economic recovery.

WHERE TO START:

To get the help you need:

  1. Visit our government’s COVID-19 Economic Response Plan website for information about supporting your employees and your business. It is constantly updated as the COVID-19 crisis evolves.
  2. Contact your local financial institution. Since we know most small businesses have a relationship with their local financial institution already, we’ve worked with the financial sector to increase their lending capability to support you in in this challenging time. They are a good first place to start for help.
  3. Consult the Canadian Business Resilience Network, a partnership between our government and the Canadian Chamber of Commerce to help your business prepare, persevere and prosper through this crisis.

  • CEBA (Canadian Emergency Business Accounts), the interest free business loan of up to $40k with 25% forgiveable, has expanded its eligibility to companies with payrolls between $20k-$1.5million. Previously it was $50k-$1million.
  • The Prime Minister, Justin Trudeau, announced new measures to support Canadian businesses so they can keep their doors open and their employees on the job.
  • The Government of Canada is:

    • Expanding the Canada Emergency Business Account (CEBA) to businesses that paid between $20,000 and $1.5 million in total payroll in 2019. This new range will replace the previous one of between $50,000 and $1 million, and will help address the challenges faced by small businesses to cover non-deferrable operating costs.
    • The government will continue to monitor and respond to the wide-ranging impacts of COVID- 19, and take additional actions as needed to protect the health and safety of Canadians and stabilize the economy.

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