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Client Communication:

$40,000 interest free loan - Canadian Emergency Business Account (CEBA)

December 29, 2020

Before applying for CEBA 2.0 (extra 20,000) note the following changes:

  • Attestation that the business is facing ongoing financial hardship as a result of the COVID-19.
  • An amended agreement is required to be signed which certifies that all expenditures since the beginning of the program are “non-deferrable eligible expenses”, even if the first loan agreement you signed was different.
  • Both loans are now combined to be $60,000 and you only get forgiveness if you pay $40,000 on time (by Dec 31,2022). The forgiven amount will be $20,000 in total. If you already repaid the original $40,000 loan, claimed forgiveness, and then borrowed the additional $20,000, you get 50% forgiven once you’ve repaid 50% of the loan. 

CEBA – checking status of your application

As of December 14, 2020, a new status-checking website is available:

December 8, 2020

- Application deadline: March 31, 2021 (extended)
- Applications for the additional $20k now available via your bank (if you qualified for the $40K, you can now apply for the additional $20K)

October 27, 2020

CEBA forgivable portion of loan of $10,000 should be included in income in the year in which the loan is received. Or elect not to include the forgivable amount in its income by reducing its outlay or expenses.  Amounts that are not forgiven can be deducted for the year in which the repayment is made. 

CEBA – personal accounts

On October 26, 2020 the government announced that CEBA will be available to businesses that have been operating out of a non-business banking account.

To be eligible, businesses must:

-     have been operating as a business as of March 1, 2020;

-     successfully open a business account at a bank; and

-     meet the other existing CEBA eligibility criteria.

The deadline to apply for CEBA is December 31, 2020.

October 13, 2020

Program expanded to provide an additional interest-free loan of up to $20,000.
Another $10,000 of this new loan would be forgivable, if repaid by December 31, 2022.

The application deadline: extended to December 31, 2020.
More details on this change, including the application process, are expected soon.

September 24, 2020

New enquiries line process: in order to provider a quicker response time, CEBA line callers will be asked to leave a call back number. An agent will return the call between Monday and Friday from 10:00 am to 9:00 pm EST.

A return call may take more than 7 business days.

September 10, 2020
Deadline for CEBA applications is extended from August 31 to October 31, 2020.

June 26, 2020
Expanded program application open June 26, 2020. 

June 22, 2020

Expanded program which was to commence June 19, 2020 was put on hold.
Updates to come

June 18, 2020
Expanded program to commence June 19, 2020.

Applications under the Non-Deferrable Expenses Stream (total employment income paid to employees in 2019 of $20,000 or less, and 2020 Eligible Non-Deferrable Expenses) follow a two-step process:
  • Step 1: Apply at your financial institution
  • Step 2: You will be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.
If successful, the Government of Canada will notify your bank and provide funding for your CEBA loan.

Additional documents required will include:
  • The name of your bank;
  • Your 9-digit business number; and
  • Electronic or paper copies of Receipts / Invoices / Agreements to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.
The Eligible Non-Deferrable Expense categories are the following:
  • Wages and other employment expenses to independent (arm’s length) third parties;
  • Rent or lease payments for real estate used for business purposes;
  • Rent or lease payments for capital equipment used for business purposes;
  • Payments incurred for insurance related costs;
  • Payments incurred for property taxes;
  • Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
  • Payments for regularly scheduled debt service;
  • Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.
   More information click here:

May 20, 2020

Program will be expanded to:
• sole proprietors receiving income directly from their businesses
• businesses that rely on contractors
• family-owned corporations that pay employees through dividends rather than payroll

To qualify, these applicants with payroll lower than $20,000 would need:
• have a business bank account
• have a CRA business number, and to have filed a 2018 or 2019 tax return.
• have eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

April 16, 2020

Will now be available to businesses with payroll between $20,000 and $1.5 million in 2019.

April 9, 2020

All the banks now have the application available online. Completing the application will take less than a minute. You might have to wait few minutes given the volume of applications.

You will need: Employer payroll account number and Box 14 on your T4 Summary.

April 8, 2020

How to Apply?

ONLY online at your bank's website. Calling your branch will not help. Applications for BMO start April 9th, other banks will be soon/ same.

April 3, 2020

Canadian Emergency Business Account

The CEBA will provide qualifying business customers with access to a $40,000 line of credit with:

  • An interest rate of 0% until Dec. 31, 2022
  • No minimum monthly principal payments until Dec. 31, 2022
  • Principal repayments made at any time
  • A $10,000 loan forgiveness is available provided the outstanding balance is fully paid on or before Dec 31, 2022.


Only customers who meet each of the following criteria are eligible for the program:

  • The person applying has the ability and authority to bind the organization.
  • The organization is an operating business (i.e., not a holding company) in operation on March 1, 2020.
  • The organization’s payroll expense in the 2019 calendar year was between $50,000 and $1 million. The customer must provide:
    • The employer account number (15 digits) as reported at the top of the customer's 2019 T4 Summary
    • Employment income reported in Box 14 of the 2019 T4
    • The customer's 2019 T4SUM when requested upon audit

Per the requirements of the program as set out by the Government of Canada, customers will agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, debt service, insurance and property tax.

Scotiabank will be issuing a bulk email to apply digitally next week as will the other Canadian banks.

Current details from some of the major banks can be found here:


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