What is the CEBA Program
- Up to $40,000 interest-free loan to help you cover operating costs you were not able to defer because of COVID-19.
- 25% (up to $10,000) of the loan proceeds is eligible for complete forgiveness if loan is repaid on or before December 31, 2022.
- If the loan cannot be repaid by December 31, 2022 it can be converted into a 3-year loan with a fixed interest rate of 5% per annum
How does the CEBA loan work?
- The loan will be funded as a term loan (up to $40,000), 0% interest and no payments until December 31, 2022.
- No interest will apply until January 1, 2023.
- Beginning January 1, 2023, interest accrues on the balance of the term loan at a fixed rate of 5% per annum, payable monthly on the last day of the month.
- If you pay 75% of the balance of the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven.
- If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.
What’s the eligibility criteria?
The eligibility criteria are as follows, per the Government of Canada’s requirements:
- Is A Canadian operating business in operation as of March 1st, 2020.
- Has a banking or borrowing relationship with the credit union as of March 1st 2020, and the credit union is your primary financial institution.
- Has a business chequing/ operating account with the credit union, which was opened on or before March 1, 2020 and is in good standing.
- Does not have any loans with the credit union in arrears by 90 days or more as of March 1,2020;
- Has a Canada Revenue Agency Business Number, and has filed tax return(s) with Canada Revenue Agency for 2019 and/or 2018;
- Has not previously received CEBA through the credit union or any other financial institution;
- Is not a non-profit organization, charity, union, or a fraternal benefit society, unless your organization earns revenue from regularly supplying property, goods and/or services; and
- Intends to continue operating or to resume operations.
- Has payroll between $20,000 and $1,500,000 for the 2019 calendar year
Where do I upload the expense documents required as part of the application?
You may upload the documents as part of your initial application process. If you need to upload them separately, visit the CEBA Document Upload website and click the Get Started button.
CEBA criteria has now been expanded to include the following;
Has eligible non-deferrable expenses in the 2020 calendar year between $40,000 and $1,500,000.
Total employment income paid to employees in 2019 was Canadian $20,000 or less or if the borrower declares no employment income was paid in 2019.
Please note: if you cannot locate your T4SUM contact Revenue Canada to have them re-issue your 2019 statement.
If you have any further questions, please connect with your Commercial Lending Representative directly.
Note: Please be advised that by clicking the link below you will be taken to an external site.
Online Application – Apply Now
Please note, due to the high volume of applications it may take us a little longer to contact you once your form has been submitted. Our commitment is to get back to you within 2 business days.
If you have further questions, please visit www.CEBAquestions.ca or email us at email@example.com Alternatively, you may call us at 843-2219. Please let us know you are inquiring about “CEBA Program” and we will redirect you to the appropriate Commercial Account Manager.