Canada Emergency Business Account

Canada Emergency Business Account

The Canada Emergency Business Account (CEBA) was introduced by the Government of Canada in cooperation with Export Development Canada to help Canadian Businesses obtain financing during the COVID-19 pandemic.

This program provides interest-free loans of up to $40,000 to small businesses and not-for-profits to help cover operating costs when impacted economically by the COVID-19 virus. Business owners can apply to this fund via SASCU.

CEBA can help pay for costs such as payroll, rent, utilities, insurance, property tax, or debt service.

Deadline to Apply: December 31, 2020

  • Export Development Canada (EDC) has confirmed the Canada Emergency Business Account (CEBA) program will no longer accept applications after October 31, 2020.
      • Applications may take up to 15 business days to process.
      • https://application-demande.ceba-cuec.ca/   to upload supporting documentation.
      Eligibility:
      • Canadian employers with $20,000 to $1.5 million in total payroll in 2019.
      • Owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll. Applicants without at least $20,000 in payroll in 2019 must demonstrate having eligible non-deferrable expenses between $40,000 and $1,500,000 in 2020.
      • the Borrower is a Canadian operating business in operation as of March 1, 2020.
      • acknowledges its intention to continue to operate its business or to resume operations.
      • has not previously used the Program and will not apply for support under the program at any other financial institution.
      Repayment
      • If the loan is repaid by December 31, 2022, 25% (up to $10,000) will be forgiven.
      • If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5 per cent interest.

      See the Government of Canada website for the latest program details and to ensure you are eligible for the CEBA program.

      Apply now


      FAQ

      See the Government of Canada website for the latest program details and to ensure you are eligible for the CEBA program.

      As a SASCU business member, you can apply via SASCU online banking:

      1. Log into online banking
      2. Click "Account Services"
      3. Select "Canada Emergency Business Account application"
      4. If you do not have online banking, contact SASCU Commercial Centre at 250.833.1301.
      Apply now

      What information will I need to complete the application?

      You will need this information handy to complete the application:

      • Legal Business Name
      • Trade or Operating Name (if applicable)
      • Business Address
      • 2019 T4 Summary of Remuneration Paid (T4SUM)
      • 15-Digit Business Payroll Number (appears on T4SUM) or 9-Digit CRA Number
      • Total Amount of Employment Income Paid in 2019 (reported by Borrower on all employee T4 slips)
      • For borrowers applying under the Non-Deferrable Expenses Stream, Business Income from a 2018 or 2019 T1 (unincorporated business) or T2 (corporation)
      • Business Account Number  Note:  Businesses that choose to do their banking through a personal bank account are not eligible to apply for this program through the credit union

      Who can I contact for more information?

      You can reach out to SASCU Commercial Centre  at 250.833.1301 for more information on this program and other supports available.

      You may also contact the new CEBA Call Centre at 1-888-324-4201. The CEBA call centre is open Monday to Friday from 8:00 am to 9:00 pm EST and can address the following types of questions:

          What is the status of my application?
          Why was my application declined?
          Why was my submitted document rejected?

      Can I go apply for the program at any bank or other credit union?

      This loan must be taken out through your primary financial institution.

      How do I qualify?

      To qualify, applicants will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019. Applicants without at least $20,000 in payroll in 2019 will have to demonstrate having eligible non-deferrable expenses between $40,000 and $1,500,000 in 2020.

      As of June 26, 2020, businesses eligible for CEBA now include owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll. This means that more small businesses can access it.

      What are the details of the loan?

      CEBA will provide interest-free loans of up to $40,000 to eligible businesses and not-for-profits.

      Repaying the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000). The CEBA will be implemented by eligible financial institutions in cooperation with Export Development Canada and the Department of Finance.

      What can I do to get started?

      If you are an eligible small business or not-for-profit, you should reach out to your credit union where you have your banking business to let them know you plan to apply for the CEBA. They will begin gathering the details necessary to qualify you for the funding.

      How long will it take me to receive the money after I’ve applied?

      After your credit union has been onboarded to the program and you have completed the application once it is ready, your application will be assessed and money will be deposited in your account which may take up to 15 days.

      How is the loan distributed?

      The loan will be deposited in your account after the loan is approved.

      What is the interest rate on the loan?

      The $40,000 loan is interest-free and no principle payments will be required until December 31, 2022. $10,000 is eligible for complete forgiveness if $30,000 is fully repaid before December 31, 2022.

      If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5% interest.