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Program Repayment Deadlines Have Changed
- The repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended to December 31, 2023, for all eligible borrowers in good standing
For repayment and forgiveness details, please refer to the following FAQs below:
- "What are the repayment terms for the $40,000 and $60,000 loan and the $20,000 expansion?"
- "What are the terms of the forgiveness?"
Program Application and Funding Deadlines Have Now Passed for CEBA Applicants
Applicants can no longer:
- Apply for a $60,000 CEBA loan or the $20,000 expansion
- Submit additional information related to their business number
- Requalify under the Non-Deferrable Expense stream
Applicants Seeking Additional Information
- Applicants can check the status of their CEBA loan online at https://status-statut.ceba-cuec.ca/.
- If you continue to have questions, you may call the CEBA Call Centre at 1-888-324-4201. The CEBA Call Centre is available Monday to Friday from 9AM to 6PM Eastern Standard Time, excluding statutory holidays.
Final Program Statistics:
Number of businesses
approved for CEBA loans1
898,271
Number of businesses
approved for CEBA expansions2
571,851
Total funds approved for
CEBA loans1 and expansions2
$49.2 Billion
2 "CEBA expansions" refer to $20,000 expansions
Click here for regional statistics
Program Overview
The CEBA program offered interest-free loans of up to $60,000 to small businesses and not-for-profits.
Repaying the balance of the loan on or before December 31, 2023 will result in loan forgiveness of up to 33 percent (up to $20,000).
As of October 26, 2020, eligibility for CEBA expanded by removing the previous March 1, 2020 condition for having an active business chequing/operating account. With this removal, eligible businesses were able to apply after opening a business chequing/operating account with their primary financial institution.
As of December 4, 2020 approved CEBA applicants were able to receive a $60,000 loan. CEBA applicants who had received the $40,000 CEBA loan were able to apply for the CEBA expansion, which offered eligible businesses an additional $20,000 of financing.
CEBA was available from more than 220 financial institutions across the country.
Loan Details
What are the repayment terms for the $40,000 and $60,000 loan and the $20,000 expansion?
All applicants that meet CEBA eligibility criteria will have the following repayment terms:
Interest:
- 0% per annum interest until December 31, 2023
- 5% per annum interest starting on January 1, 2024; interest payment frequency to be determined by your financial institution
Repayments & Maturity:
- No principal repayment required before December 31, 2023
- If loan remains outstanding after December 31, 2023, only interest payments required until full principal is due on December 31, 2025
Debt Forgiveness:
- If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by December 31, 2023, the remaining principal amount will be forgiven, provided that no default under the loan has occurred
What are the terms of the forgiveness?
All applicants that meet CEBA eligibility criteria will have the following terms of forgiveness:
If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2023 will result in loan forgiveness of 25 percent (up to $10,000).
Example 1:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2023: $30,000
Available Forgiveness: $10,000
Example 2:
Maximum Amount Borrowed: $20,000
Amount Repaid By December 31, 2023: $15,000
Available Forgiveness: $5,000
Example 3:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2023: $25,000
Available Forgiveness: $0
If you borrowed more than $40,000 and up to $60,000:
If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed and are described here.
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2023 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
- 25 percent on the first $40,000; plus
- 50 percent on amounts above $40,000 and up to $60,000.
For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2023. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid.
Note: some financial institutions may record your $40,000 loan and $20,000 expansion as two separate loans. For the purposes of loan forgiveness, borrowings and repayments on both loans will be aggregated.
Example 4:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2023: $40,000
Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)
Example 5:
Maximum Amount Borrowed: $50,000
Amount Repaid By December 31, 2023: $35,000
Available Forgiveness: $15,000 ($40,000 x 25% + $10,000 x 50%)
Example 6:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2023: $35,000
Available Forgiveness: $0
If you fully repaid your original $40,000 loan, claimed forgiveness, and thereafter received the $20,000 expansion:
Repaying the outstanding balance of the $20,000 expansion (other than the amount available to be forgiven) on or before December 31, 2023 will result in loan forgiveness of 50 percent (up to $10,000).
Example 7:
Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2023: $10,000
Available Forgiveness: $10,000
Example 8:
Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2023: $8,000
Available Forgiveness: $0
I was told I will be contacted with further information regarding my original loan in 4 to 8 weeks. When can I expect to receive this communication?
The CEBA program is aware of a delay that is currently affecting businesses who were previously told they would receive further information regarding their original loan in 4 to 8 weeks. We apologize for the inconvenience. Please note, your financial institution does not have any further information at this time and will contact you as soon as further information is available.
Funding
What do I do if my business is declined?
All declined applicants will be notified directly by their financial institution, along with a reason for the decline.
The pre-funding eligibility validation is based on the criteria established by the Government of Canada. No organization involved in administering the CEBA program has the authority to grant exceptions, including your financial institution.
Expansion to CEBA ($60,000 loan and $20,000 expansion)
Who can receive the $20,000 expansion?
Applicants who received a $40,000 loan must have applied for the $20,000 CEBA expansion before the June 30 Application Period Deadline.
In instances where additional information is needed from you or your financial institution relating to your original loan application, or if post-funding validations identified a discrepancy between your original loan application and CRA records, your expansion application may be declined.
Eligibility
What are the eligibility requirements for CEBA?
The CEBA application process follows one of two streams: (i) the Payroll Stream (Applicants with employment income paid in the 2019 calendar year between Cdn.$20,000 and Cdn.$1,500,000) or (ii) the Non-Deferrable Expense Stream (Applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year).
Every applicant must meet the following criteria:
- Has an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
- Has an active business chequing/operating account with the Lender at the time of applying for CEBA. Note: If Borrower currently does not have a business chequing/operating account the Borrower must create one at their primary financial institution before applying for CEBA.
- Has not previously used the Canada Emergency Business Account Program (the “Program”) and will not apply for support under the Program at any other financial institution.
- Intends to continue to operate its business or to resume operations.
If you fall into the Non-Deferrable Expenses Stream you must also meet the following criteria:
- Have eligible non-deferrable expenses between Cdn. $40,000 and Cdn. $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses are subject to verification and audit by the Government of Canada.
- Filed an income tax return with the CRA with a tax year ending in 2019 or, if its tax return for 2019 has not been submitted, 2018.
Are any Borrowers excluded from CEBA?
Per the requirements of the Program, as set out by the Government of Canada, the Borrower confirms that:
- It is not a government organization or body, or an entity wholly owned by a government organization or body;
- It is not a non-profit organization, registered charity, union, or a fraternal benefit society or order, or an entity owned by such an organization, unless the entity is actively carrying on a business in Canada (including a related business in the case of a registered charity) that earns revenue from the regular supply of property/goods or services;
- It is not an entity owned by any Federal Member of Parliament or Senator;
- It does not promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age, or mental or physical disability, contrary to applicable laws.
What are Non-Deferrable expenses and what are the Eligible Non-Deferrable expense categories?
Applicants with $20,000 or less in payroll in 2019 will have to demonstrate having Eligible Non-Deferrable Expenses between Cdn. $40,000 and Cdn. $1,500,000 in 2020. Expenses are considered “Eligible Non-Deferrable Expenses” if they were already incurred in January and/or February 2020, or are due to a legal or contractual obligation as at March 1, 2020 and cannot be avoided or deferred beyond 2020 even during a period of shut down and depressed revenues as a result of COVID. Electronic or paper copies of Receipts / Invoices / Agreements will need to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.
CEBA is not intended to provide income support, or support for variable operating expenses to businesses. CEBA is intended to support businesses by providing financing for their expenses that cannot be avoided or deferred as they take steps to safely navigate a period of shutdown, thereby helping to position businesses for successful relaunch when the economy reopens.
The Eligible Non-Deferrable Expense categories are the following:
- Wages and other employment expenses to independent (arm’s length) third parties;
- Rent or lease payments for real estate used for business purposes;
- Rent or lease payments for capital equipment used for business purposes;
- Payments incurred for insurance related costs;
- Payments incurred for property taxes;
- Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
- Payments for regularly scheduled debt service;
- Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower;
- Payments incurred for materials consumed to produce a product ordinarily offered for sale by the Borrower.
What if I run more than one business?
Each qualifying business must have a unique 9-digit Canada Revenue Agency (CRA) Business Number. Each qualifying business is limited to one CEBA loan.
Is a Canada Revenue Agency (CRA) Business Number required to apply?
Yes. A 9-digit CRA Business Number is required to apply. The business number must be active with an effective date on or prior to March 1, 2020. For payroll stream applicants, the 15-digit payroll account must be active with an effective date on or prior to March 1, 2020.
If the first fiscal year (and tax year-end, as indicated on the business’ tax return) of a business ends on or after January 1, 2020, is that business eligible for a CEBA loan?
CEBA applicants must attest to the fact that they have filed an income tax return with the Canada Revenue Agency for 2019 (i.e., the tax year-end, as indicated on the tax return, is in the calendar year 2019) (or if this income tax return for 2019 has not yet been submitted, 2018). If a CEBA applicant’s first tax year-end, as indicated on the tax return, is in calendar 2020, they therefore would not be eligible for a CEBA loan.
I am a charity or not-for-profit organization, am I eligible for CEBA?
Since the launch of CEBA, the Canadian Government has made changes to the program to make it available to more Canadian businesses that continue to need support during the COVID-19 pandemic.
In order to qualify for the CEBA program, applicants must be an active operating business with a CRA Business Number both effective as of March 1, 2020 in the form of a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”). Additionally, for the Non-Deferrable Expense stream, applicants must have filed a valid T1 or T2 tax return. Charities and not-for-profit organizations that meet the program’s requirements have successfully attained CEBA funding.
CEBA eligibility is determined based on the criteria established by the Government of Canada. No organization involved in administering the CEBA program has the authority to grant exceptions, including your financial institution.
Organizations that remain unable to access CEBA may be eligible for other COVID response programs. A full description of all the programs currently available is on the Government of Canada’s website at canada.ca/economic-response-plan.
What types of legal entities are eligible borrowers for a $60,000 CEBA loan or $20,000 CEBA expansion loan?
In order to be eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan, an applicant must be an active operating business that is a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”) that was in operation in Canada on March 1, 2020. Other types of business entities are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan.
If my business has received support under the COVID Indigenous SMEs Initiative, can my business also be eligible for CEBA?
The COVID Indigenous SMEs Initiative is part of the Government of Canada’s response to COVID-19 and is intended to support small to medium-sized Indigenous businesses. Businesses that have received support under the COVID Indigenous SMEs Initiative are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion.
If my business has received support under the Regional Relief and Recovery Fund (RRRF), can my business also be eligible for CEBA?
The Regional Relief and Recovery Fund (RRRF) is part of the Government of Canada’s response to COVID-19 and is intended to support businesses that are not eligible for CEBA. Businesses that have received support under the Regional Relief and Recovery Fund (RRRF) are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion.
Applying for CEBA
Where can I find out the status of my CEBA loan application?
You can check your application status at https://status-statut.ceba-cuec.ca/
Was there a deadline for completing an application at my primary financial institution and for uploading supporting documents?
The June 30, 2021 deadline to complete an application has passed.
Applicants who applied for CEBA prior to the June 30 application period deadline had until July 14, 2021 to submit supporting documents as part of their application, and until September 3, 2021 to resubmit documents if required.
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