The Government of Canada is taking immediate, significant and decisive action through Canada’s COVID-19 Economic Response Plan to support Canadians and businesses facing difficult challenges as a result of the global COVID-19 outbreak. Small businesses in particular continue to face economic hardship and uncertainty during the COVID-19 pandemic.
Today, Minister of Finance Bill Morneau announced that as of Friday, June 19, 2020, applications will be accepted so that more small businesses can access the Canada Emergency Business Account (CEBA). This means that owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll will become eligible this week.
To qualify under the expanded eligibility rules, CEBA applicants with payroll lower than $20,000 will need:
- A business operating account at a participating financial institution;
- A Canada Revenue Agency business number;
- A 2018 or 2019 tax return; and
- Eligible non-deferrable expenses of between $40,000 and $1.5 million.
Eligible businesses will qualify for financing of up to $40,000, with 25 per cent of this being forgivable based on the current terms of CEBA loans. Businesses can contact their primary financial institution for more information or to apply directly for CEBA. More information on the expanded CEBA can be found on the program’s website.
CEBA is part of the Government of Canada’s COVID-19 Economic Response Plan, which is helping Canadians and businesses deal with the economic impacts of the pandemic. The measures under this plan will help businesses protect the jobs that Canadians depend on, keep their doors open, keep their employees on payroll, and recover quickly when the time comes.
The government continues to assess and respond to the impacts of COVID-19. It stands ready to take additional actions as needed to stabilize the economy and mitigate the impacts of the pandemic.