Today, April 16, the federal government has announced the requirements for the Canada Emergency Business Account (CEBA) have been amended for greater eligibility. Until now, CEBA previously required businesses to have had between $50,000 and $1 million in payroll expenses during 2019.
These rules have now changed to between $20,000 and $1.5 million in payroll expenses.
This means more businesses will now be eligible for up to a $40,000 loan through the CEBA program. You must still produce a T4 Summary of Remuneration Paid statement to prove payroll expenses for 2019.
The terms of the loan have not changed, and are as follows:
•Up to $40,000 interest-free loan for costs that cannot be deferred due to COVID-19.
•$10,000 (25%) will be forgiven if fully repaid before December 31, 2022.
•If not fully repaid by December 31, 2022, it will be converted to a 3-year loan at 5% interest. The full loan balance and accrued interest will then be due by December 31, 2025.
The loan is accessed via your lender or financial institution and available now.
Today, the federal government also announced a new relief program, the Canada Emergency Commercial Rent Assistance program. This is intended to assist businesses struggling to meet their rent or commercial property obligations due to COVID-19.
Details on this newly announced program are pending and will be announced in further detail soon, after Prime Minister Justin Trudeau meets with Canada's premiers.