CEBA

CEBA was originally launched on April 9th, 2020 and was intended to help businesses pay non-deferrable expenses. The eligibility criteria was expanded in June to include businesses that did not have payroll, sole proprietors and family-owned corporations that pay their shareholders in the form of dividends instead of payroll. Loans of up to $40,000 are extended to small businesses and not-for-profits.

If your payroll was $20,000 or less in 2019 you will have to prove that your eligible non-deferrable expenses total between $40,000 and $1,500,000 in 2019. CEBA applicants may go under a CRA audit to establish the eligibility of their CEBA and inaccuracies may have legal consequences.

The loan must be spent by December 31, 2020 and must be paid back by December 31st, 2022 for the 25% forgiveness. If you were eligible for a $40,000 loan your loan forgiveness will be $10,000 compared if you are eligible for a $20,000 loan, your loan forgiveness would be $5,000. This includes businesses that took a $40,000, but only had $20,000 of eligible expenses. Your forgiveness is based on your eligible expenses paid by the loan and not the total loan itself.

Got more questions regarding CEBA? Contact Us.