The Government of Canada has introduced several measures to give businesses financial relief during COVID-19. Some are longer-term, such as payment deferrals on taxes and government-insured mortgage loans. However, for small businesses that need a fast funding injection to compensate for lost revenue, the Federal Government has launched the Canada Emergency Business Account (CEBA).
So, what exactly is the CEBA?
Launched in partnership with leading members of the Canadian finance industry, the CEBA provides an emergency loan of up to $40,000 to help small businesses cover unavoidable operating costs during the crisis. These costs can include rent, payroll, insurance, utilities, and other essential expenses. Plus, as far as loans go, it’s issued on very favourable terms:
- Borrow up to $40,000 interest-free until December 31, 2022
- If 75% or more of the loan has been repaid by December 31, 2022, the remainder will be forgiven
- After December 21, 2022, repayment of any outstanding balance can be extended for a further three years at a 5% interest rate
Who can apply?
If you’re a Coast Capital business member as of March 1, 2020, you can apply for the account through Coast Online® Banking.
The CEBA is also open to unions, charities, and other organizations so long as they are registered T2 or T3010 corporations with declared sales revenue during 2019. Unfortunately, sole proprietors running their business through personal bank accounts are not eligible.
Each eligible business can apply for a single CEBA, which must be arranged through their main business banking provider. There are several other government criteria, including:
- All businesses should have a federal tax registration and a Canada Revenue Agency business number
- The business must have a total employment income of between $20,000 and $1,500,000 for the 2019 calendar year
- The business mustn’t be in more than 90 days’ arrears with any credit account at the institution they’re applying through
For full eligibility details, see our main CEBA page. To speed up applications and payment, all eligibility is self-declared by the applicant and will be verified at a later date.
How to Apply
At this time, applications can only be made online. To apply through Coast Capital, sign in to Coast Online Banking and under ‘Products and Services’ on the left, click on ‘CEBA Application’ to get started.
Unfortunately, we cannot take applications through our mobile app, but if you’re not a current user of our online banking you can also apply here. If you need any help with your application or advice on eligibility, please contact your Small Business Relationship Manager who will be happy to help.
Once we receive your application, we’ll aim to process it within five working days, but please be patient as high volumes are expected.