Finance Minister Bill Morneau and Mary Ng, Minister of Small Business, Export Promotion and International Trade, issued the following statement:
“Starting today, small business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions. Businesses should access the Canada Emergency Business Account through their primary lender, where they have a pre-existing relationship. Businesses that are impacted can contact them by phone or email to find out about their application process”
CEBA provides much needed credit for small businesses to pay for immediate operating costs such as payroll, rent, utilities, insurance, property tax, or debt service. It is 100 per cent funded by the Government of Canada.
- It is available to Canadian employers with $50,000 to $1 million in total payroll in 2019, and operating as of March 1, 2020. This includes smaller (i.e., micro) businesses and other eligible employers such as not-for-profits.
- Under CEBA, financial institutions will be able to provide interest-free credit facilities of up to $40,000 to eligible businesses.
- If the loan is repaid by December 31, 2022, 25 per cent (up to $10,000) will be forgiven.
- If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5 per cent interest.
This program is now available at various financial institutions and credit unions.