Canada Expands Small Business Loan Program
On June 15, the Canadian government announced that, starting last Friday, June 19, it will expand the Canada Emergency Business Account (CEBA) so that more small businesses can access the COVID-19-related aid program. The announcement means that owner-operated small businesses that had been ineligible for the program due to lack of payroll, the fact that they were sole proprietors who directly receive business income, or to being family-owned corporations that provide renumeration in the form of dividends rather than payroll, will become eligible for the CEBA.
To qualify under the expanded eligibility rules, CEBA applicants with payroll lower than $20,000 will need:
- A business operating account at a participating financial institution;
- A Canada Revenue Agency business number;
- A 2018 or 2019 tax return; and
- Eligible non-deferrable expenses of between $40,000 and $1.5 million.
Newly-eligible businesses now qualify for financing of up to $40,000 with 25 percent of this being forgivable based on the current terms of CEBA loans. Businesses can contact their primary financial institution for more information or that can apply directly for CEBA. Click here for more information.