Statistics Canada finds almost one third of Canada Emergency Business Account loans covered payroll expenses in the second quarter
November 19, 2020
The CEBA program was a component of the Government of Canada’s COVID-19 Economic Response Plan and designed to provide zero interest, partially forgivable loans to small and medium businesses impacted by the pandemic.
Statistics Canada finds that three quarters of businesses reported that CEBA funding was essential to continue operations. Over half of business that received CEBA reported that it was necessary and sufficient to extend operations, while one-fifth said that additional types of government support were required. The largest share of funds, reaching nearly one third, was withdrawn to cover payroll expenses, followed by payments to suppliers. The retail trade industry received the third largest number of loan approvals. Businesses with 1 to 9 employees accounted for over three-quarters of approved CEBA loans, while those with 10 or more employees accounted for almost one-quarter of all loan approvals.
Information on federal relief programs can be found on RCC’s guide to COVID-19 Relief Measures
