Canada Emergency Business Account (CEBA)
To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada has announced the launch of the new Canada Emergency Business Account, which will be implemented by eligible financial institutions.
This $25 billion program will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus. These government-backed loans will be interest-free until the end of 2022, and administered by banks.
To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Canada has more than 1.1 million small businesses, employing about 8.3 million people and contributing roughly 40 per cent of Canada's entire economic output, according to the latest numbers from Statistics Canada.