Canada Emergency Business Account (CEBA) Expansion

/ Uncategorized / By

For those who have already been approved and are seeking the 20K expansion

Anyone who already has a $40,000 CEBA loan may be eligible to apply for the $20,000 expansion. If you already repaid part of your original loan you can still apply for the expansion. As of today’s date (December 9th, 2020) some banks are not yet ready to accept applications for expansion so we encourage you to contact them for a more accurate timeline for when you may apply.  

For those who have not yet applied

Eligibility requirements

There are two streams of applications for the CEBA

  • Payroll stream (have employment income paid between $20,000 and $1,500,000 CDN in 2019)
  • Non-deferrable expenses stream – for applicants with $20,000 or less in total employment income (have eligible non-deferrable expenses between $40,000 and $1,500,000 CDN and have filed an income tax return with tax year ending in 2019 or 2018 (if 2019 has not yet been submitted)
    • Some of the most common examples of non-deferrable expenses include rent, lease payments, property taxes, utilities, insurance, wages to arm’s length parties, regularly scheduled debt payments.

Every applicant must also meet the following:

  • Have an active CRA business number registered on or before March 1, 2020.
  • Have not previously used the CEBA program. (can only apply once)
  • Have the intention to continue to operate its business or to resume operations
  • Have an active bank account with the Lender at the time of application. If you do not have one, one must be created with your primary institution before the application

How to apply – Payroll stream

Complete the application with your financial institution.  Most often you will be required to submit a payroll summary. If you require assistance with obtaining this information, please let us know.

How to apply – Non-deferrable Expenses stream

3 Step process:

  1. Complete online Pre-Screen Tool. This is not an application and is only intended to assist in the indication of eligibility.
  2. Initiate the application with your primary financial institution.
  3. Following the initial application in 2, you will be directed to a CEBA website to provide supporting documentation for the eligible non-deferrable expenses.

The Government of Canada will assess the application and if successful will notify your financial institution and provide funding for your CEBA loan.

We encourage you to contact us if you have any questions about program eligibility or applications.

Share this post