Expanded eligibility for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses
May 19, 2020The government has announced that the eligibility criteria for the Canada Emergency Business Account (CEBA) is being expanded to include many owner-operated small retailers and other businesses. Sole proprietor retail businesses that are receiving income directly from their businesses, family-owned retailers that pay employees through dividends rather than payroll, and businesses that rely on contractors will now qualify for the CEBA through their financial institutions.
Retailers with payroll lower than $20,000 would need:
- A business operating account at a participating financial institution.
- A Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
- Eligible non-deferrable expenses between $40,000 and $1.5 million which could include costs such as rent, property taxes, utilities, and insurance.
RCC will continue to update our members as we receive more details, including the launch date for applications under the new criteria. RCC is also pushing for further expansions to help those retailers who operate through their personal bank account or new retailers who have yet to file a tax return.