The federal government has extended the application deadline for the Canada Emergency Business Account (CEBA) program on June 30.
Launched at the start of the COVID-19 pandemic in Canada, 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 pay off the loan balance on or before December 31, 2022 will receive a 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, out of business. reduced openness or reduced demand for services, “the government said in a statement. “The extension of the application deadline until June 2021 also aligns the CEBA with the timelines of other federal government business support programs.”
In December, the government officially expanded the CEBA to allow eligible small businesses to access funding of up to $ 20,000 in addition to 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 loaned under the program.
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This latest extension of time applies to all new requests for CEBA loans of $ 60,000 or to new requests from businesses that have already received the loan of $ 40,000 and intend to request the additional $ 20,000.
To be eligible for the CEBA, candidates must meet the payroll eligibility criteria or justify a minimum of $ 40,000 in eligible expenses that cannot be carried forward. Applicants with a payroll of less than $ 20,000 must prove that they meet the additional CEBA eligibility requirements.
“Recognizing that businesses face challenges as we continue to fight the pandemic, we are extending the CEBA deadline to ensure they have the essential support they need,” said Minister of Small Business , Export Promotion and International Trade Mary Ng.
Image source Justin Trudeau via Flickr.