Today, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, and the Minister of Small Business, Export Promotion and International Trade, the Honourable Mary Ng, announced that the deadline for new Canada Emergency Business Account (CEBA) applications is being 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 have already received the $40,000 loan and intend to apply for the additional $20,000.
The extension will allow more businesses to access the support they need as Canada’s economy continues to deal with localized public health restrictions and, for a number of businesses, reduced opening hours or reduced demand for services. Extending the application deadline to June 2021 also aligns CEBA with the timelines of other federal government support programs for business.
The extension of the application deadline and other adjustments that the government has made to CEBA, such as introducing the non-deferrable expense stream and increasing the loan amount from $40,000 to $60,000, demonstrate the government’s commitment to stand by small businesses.
“By supporting Canadian businesses, Canadian jobs and Canadian families, we are not only helping our communities through difficult times; we are preventing economic scarring. This support will allow us to have a full and robust economic recovery, when the virus is fully defeated. Extending the CEBA application deadline will allow more businesses to access this support and help them manage their operating costs during these hugely difficult times. ”
“Our government is committed to bridging businesses through the pandemic until we are ready for recovery. CEBA, along with our other emergency support programs, has been crucial to businesses paying their bills, keeping their doors open and their workers on the payroll. Recognizing that businesses are facing challenges as we continue to fight the pandemic, we are extending the CEBA deadline to ensure they have the essential support they need. We are listening to business owners and will continue to be there to support them.”
- 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. Information can also be found on the program’s website.
- The Canada Emergency Rent Subsidy (CERS) provides a direct and easy-to-access rent and mortgage subsidy of up to 65 per cent of eligible expenses to qualifying businesses, charities and non-profits. This support is available directly to tenants.
- Qualifying organizations that have been significantly restricted by a mandatory public health order issued by a qualifying public health authority can receive an additional 25 per cent of rent support through the Lockdown Support. The combined effect of the rent subsidy and the Lockdown Support is that hard-hit businesses, non-profits and charities subject to a lockdown can receive rent support of up to 90 per cent.
- The Canada Emergency Wage Subsidy (CEWS) covers up to 75 per cent of an employee's wages for qualifying eligible employers to keep and re-hire employees and avoid layoffs.
- Canada Emergency Business Account (CEBA)
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- Launch of the Canada Emergency Business Account
- Canada’s COVID-19 Economic Response Plan