CEBA

Canada Emergency Business Account

The new Canada Emergency Business Account (CEBA), which was announced by the Government of Canada on March 27th, 2020, provides up to $40,000 to small businesses and not-for-profits as an interest-free loan. The intention of this loan is to help cover their operating costs during a period where revenue may be reduced.

WHAT IS THE CEBA LOAN?
  • $40,000 interest-free loan to help you cover operating costs you were not able to defer because of COVID-19
  • $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is repaid on or before December 31, 2022
  • If the loan cannot be repaid by December 31, 2022 it can be converted into a 3-year loan with an interest rate of 5%
  • Once your loan application has been reviewed and submitted, the process for funding will take up to 7 days from completion.  

HOW DOES THE CEBA LOAN WORK?
  • The loan will be funded as a $40,000 term loan, 0% interest and no payments until December 31, 2022
  • No interest will apply until January 1, 2023
  • Beginning January 1, 2023, interest accrues on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of the month
  • If you pay 75% of the balance of the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven.  For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven
  • If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.

WHAT IS THE ELIGIBILITY CRITERIA?
The eligibility criteria are as follows, per the Government of Canada’s requirements:

  • You are a Canadian operating company (ie. not a holding company) registered and in operation on or before March 1, 2020
  • Your Annual payroll expense is between $20,000 and $1.5 million, as evidenced on your 2019 T4 Summary of Remuneration Paid (T4SUM).  If you cannot locate your T4SUM contact Revenue Canada for reissue
  • A 15-digit Canada Revenue Agency Number also shown on your T4SUM
  • Unity Credit Union is your primary financial institution - meaning your everyday business banking account and cash management activities are held with Unity Credit Union, and opened on or before March 1, 2020
    • If your everyday business banking account is held elsewhere, please apply for funding through the Financial Institution that holds your primary Business Operating Account
    • Your account must be in Good Standing as an existing member

WHAT DO I NEED TO APPLY?
  • Locate your 2019 T4 Summary of Remuneration Paid statement.  You can contact the Canada Revenue Agency to have them re-issue your 2019 statement.
  • We also require the following information:
    • Your employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid
    • Your employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid
    • A copy of your 2019 T4 Summary of Remuneration Paid may be requested

As your trusted financial advisors, we’re here for you. Your financial wellbeing is our top priority and we are committed to providing flexible solutions to help you through this challenging time.

If you have further questions, please visit www.CEBAquestions.ca or reach out to your Account Manager by calling 306.228.2688.



 

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