The Canada Emergency Business Account was announced by the Government of Canada to support small and medium sized businesses in these challenging times. It is a simple application process and only takes about 5-10 minutes once you have all the required information together.
Eligibility for the program can be found on your Bank’s website (links to common banks available at the bottom of this article). At the time of this article the government announced they were widening the eligibility but details are not posted yet. Currently basic Eligibility Criteria is:
- Be a Canadian operating business in operation as of March 1, 2020.
- Payroll between $50,000 to $1 million (this may be changing to $20,000 to $1,500,000 in the near future) in total payroll in 2019 calendar year. (found on your T4 SUM document from 2019 taxes)
- Have a federal tax registration (also found on your T4 SUM document from 2019 taxes)
- Have an active business chequing/operating account with an eligible bank opened before March 1st 2020
- Not being delinquent on existing borrowing facilities for more than 90 days in March 1st, 2020.
- Visit your Bank’s website for all details.
Up to $10,000 of the $40,000 could be non-repayable so long as you repay the full amount before December 31, 2022. You bank has the exact details for accessing this $10,000 non-repayable portion. Basically the program provides:
- Once approved by your bank (approval time varies from 5-10 business days) you will have a $40,000 Line of Credit until December 31, 2020
- On January 1, 2021 this line of credit converts to a term loan. This term loan is Interest Free (0%) for 1 year until December 31st, 2021.
- IF you repay the full loan BEFORE December 31, 2021 then you only pay pay 75% of the loan. 25% of the loan is non-repayable.
- On January 1st, 2022, any amount not repaid becomes a 3 year loan at 5% interest.
Find Your Banks COVID Details HERE
Other Banks may also have information on their website. Contact your bank to learn more.Share