The federal government has extended the application deadline for the Canada Emergency Business Account (CEBA) program until June 30.
Launched at the start of the COVID-19 pandemic in Canada, the CEBA offers interest-free loans of up to $60,000 to small businesses, to help cover their operating costs such as rent, utilities and insurance . Businesses that repay the loan balance by December 31, 2022 will receive loan forgiveness of up to 33%, or up to $20,000. The CEBA program was originally scheduled to end on March 31.
“The extension will allow more businesses to access the support they need as the Canadian economy continues to face localized public health restrictions and, for a number of businesses, unfinished business hours. openness or reduced demand for services,” the government said in a statement. “Extending the application deadline to June 2021 also aligns CEBA with the deadlines for other federal government business support programs.”
In December, the government officially expanded CEBA to give eligible small businesses access to up to $20,000 in loan financing on top of the $40,000 they can already access. As of March 18, more than 850,000 CEBA loans had been approved and nearly $45 billion had been lent under the program.
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This latest extension of time applies to any new CEBA loan application of $60,000 or to new applications from businesses that have already received the $40,000 loan and intend to apply for the additional $20,000.
To be eligible for the CEBA, applicants must meet payroll eligibility criteria or they must demonstrate a minimum of $40,000 in eligible non-deferrable expenses. Applicants with a payroll of less than $20,000 must demonstrate that they meet additional CEBA eligibility criteria.
“Recognizing that businesses are facing challenges as we continue to fight the pandemic, we are extending the CEBA deadline to ensure they have the critical support they need,” said the Minister of Small Business , Export Promotion and International Trade, Mary Ng.
Image source Justin Trudeau via Flickr.