CEBA - Canadian Emergency Business Account

CEBA – Canadian Emergency Business Account

The Canada Emergency Business Account (CEBA) provides a $40,000-$60,000 loan for eligible small businesses and not-for-profit members. This federal program is designed to help cover operating costs for businesses experiencing temporary reduced revenue.

Effective December 4 CEBA support has been expanded from $40,000 to $60,000.
This expanded financing is available to new applicants (who can apply for $60,000 in financing) and existing applicants (who can apply for an additional $20,000 in financing.) Members now have until June 30, 2021 to submit an application.

Terms and Conditions of the Canadian Emergency Business Account:

  • The loan will be offered at 0% interest until December 31, 2022
  • $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.  $20,000 of the $60,000 or top up to $60,000 is eligible for complete forgiveness if $40,000 is fully repaid on or before December 31, 2022.
  • If the loan is not repaid by December 31, 2022, it will be converted into a 3-year term bearing an interest rate of 5% per annum.
  • Outstanding principal of the loan must be fully repaid by December 31, 2025.
  • Apply for CEBA from your primary financial institution. Applying for this benefit at more than one financial institution may result in prosecution by the federal government.

 

Eligibility

Applicants must be current Cypress Credit Union business members with an active business operating account. The borrower must be in good standings with Cypress Credit Union meaning they weren’t in arrears 90 days or more on March 1, 2020.

Simplified payroll-based (payroll greater than $20,000)

Businesses with annual payroll between $20,000 and $1.5 million based on the sum of all employment income reported on all employee T4s for 2019.

  •  Must demonstrate that you paid $20,000 to $1.5 million in total payroll in 2019. You’ll need to provide:
    • Your CRA Business Number (15 digits), as reported at the top of your 2019 T4 Summary of Remuneration (T4SUM)
    • Employment income reported in Box 14 of your 2019 T4SUM
    • 2019 T4SUM when requested upon audit
  • Must agree to use the funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance and property tax, as per the requirements of the program set out by the Government of Canada

Non-deferrable expense based (payroll less than $20,000)

Businesses with annual payroll less than $20,000 during 2019 and eligible non-deferrable expenses for 2020 between $40,000 and $1.5 million.

  • A business operating account at Cypress Credit Union before March 1, 2020
  • Have a CRA business number (15 digits)
  • A 2018 or 2019 tax return
  • Have eligible non-deferrable expenses of between $40,000 and $1.5 million. Expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.

Following the initial application through Cypress Credit Union, members will be directed to the CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.

 

When and where can I apply?

Both applications are now available. Apply at your earliest convenience here.

CEBA enrollment will only be available online.

 

What documentation do I need?

We recommend you gather the following information in advance for a smooth application process:

 

·         Locate your 2019 T4 Summary of Remuneration Paid statement.  You can contact the CRA to have them re-issue your 2019 statement.

·         We also require the following information:

o    Your employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid

o    Your employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid

o    2019 T4SUM when requested upon audit

·         For the Non-deferrable expense based, you will be required to upload the following information:

o    Invoices, receipts or other supporting documents for your Eligible Non-Deferrable Expenses

 

 

For full requirement details visit the Government of Canada website here.