Canada Emergency Business Account (CEBA) Overview

What Is CEBA?

The CEBA is a government-funded interest-free business loan to help retailers pay for expenses during the COVID-19 pandemic.

How much can my business receive?

As of December 4, 2020, retailers are able to access a second CEBA loan of up to $20,000 – on top of the initial $40,000 that was available previously. This additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible retailers. If the loan is repaid by December 31, 2022, $20,000 of the loan will be forgiven.

How to qualify?

To apply, a retailer must have an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.

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). Companies with a payroll under $20,000 in 2019 will have to demonstrate having Eligible Non-Deferrable Expenses between $40,000 and $1,500,000 in 2020.

Additionally, a retailer must have an active business chequing/operating account with an approved lender at the time of applying for CEBA. If a retailer currently does not have a business chequing/operating account, they have the option to create one in order to apply.

How do I apply?

You will need to apply through one of the 220 financial institutions across the country who offer the loan. Please see CEBA’s website for the full list of participating institutions.

Is there a deadline to apply?

Yes, you will need to apply by March 31, 2021.

More information

More information can be found on the CEBA’s Website, or through your financial institution.

Q & As

  • How many businesses in my region have been approved for a CEBA loan?

    As of early December 2020, close to 800,000 businesses across Canada had been approved for CEBA loans. Approval numbers for each province and territory are tracked on the government’s website. View tracker.  

  • Can I still apply for the extra $20,000 if I already paid off my first CEBA loan?

    Yes, you can. You will need to apply through the bank that provided you with your initial CEBA loan.

  • What is the Canada Emergency Business Account (CEBA) and how can it help smaller retailers?

    The CEBA is a federal interest-free, partially forgivable loan program available to smaller retail businesses during COVID-19. CEBA eligibility requires a maximum 2019 payroll of $1.5 million and there is a separate stream for businesses with payrolls at or below $20,000. 

    Eligible retailers can receive interest-free CEBA loans of up to $40,000. If repaid by December 31, 2022, 25% of the loan will be forgivable (up to $10,000). The government has also made an additional $20,000 loan available. 50% of this second loan, i.e. up to $10,000, is also forgivable if repaid by the December 2022 deadline. 

    In total, the CEBA offers retailers an interest-free loan of $60,000, of which $20,000 will be forgivable if repaid by December 31, 2022. The deadline to apply for a CEBA loan has been extended to March 31, 2021. 

    View RCC’s CEBA overview for more information.

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