Canada Emergency Business Account (CEBA)
CEBA provides a loan of $60,000 for small businesses, protecting their cash flow to pay for immediate operating costs such as payroll, rent, utilities, insurance, property tax, or debt service. It is funded by the Government of Canada.
- Update: The CEBA loan has been expanded from $40,000 to $60,000. You can now receive a loan of up to $60,000, interest free until December 31, 2022 (subject to availability of government funding).
- New applicants: You can borrow $60,000, with a total of $20,000 eligible for forgiveness if at least $40,000 is paid by December 31, 2022.
- Existing applicants: You can borrow an additional $20,000 for a total of $60,000. A total of $20,000 will be eligible for forgiveness if at least $40,000 is paid by December 31, 2022. To receive this additional funding, you will apply at the same financial institution where you received your initial CEBA loan.
- The deadline to apply for CEBA has been extended to March 31, 2021.
- On January 1, 2023, unpaid balances will be converted to a three-year term loan at 5% interest.
Please note: In order to protect your security and privacy, we will be using our secure email portal. After your initial phone call, please respond to our emails within this secure portal to protect your business account information.
Check your CEBA application status
If you have questions about your application status and required documents, you have two options:
For more information, visit the Government of Canada CEBA webpage.
Click on a question below to be taken directly to the answer.
1. What is the Canada Emergency Business Account?
The Canada Emergency Business Account (CEBA) provides funds for small businesses and not-for-profits to maintain their cash flow and pay for immediate non-deferrable operating costs.
The funds are available to Canadian employers who have either paid between $20,000 and $1.5 million in total payroll in 2019, or are obligated to pay between $40,000 and $1.5 million in non-deferrable expenses in 2020. Businesses can receive a loan of up to $40,000, which is interest-free until December 31, 2022.
2. Is there a deadline for completing an application at my primary financial institution and for uploading supporting documents?
The CEBA application deadline has been extended to March 31, 2021. Once you begin the application process, you will be required to submit documents according to federal deadlines. Please note:
- It is recommended that you provide your supporting documents through the application-demande.ceba-cuec.ca site as soon as you are directed to do so.
- Supporting documentation is a critical part of the application processes and delays in providing this information can result in a delay in the prefunding eligibility validation and funding process.
- Your account manager will review these with you during the application process.
3. How does loan forgiveness work? Will I be charged fees or interest to take advantage of the CEBA?
There are no fees to receive the CEBA. Loans are interest-free until December 31, 2022. After December 31, 2022, any remaining balance will be converted to a 3-year term loan at 5% interest.
- If you have borrowed $40,000 and at least $30,000 is paid by December 31, 2022, up to $10,000 will be forgiven.
- If you have borrowed $60,000 and at least $40,000 is paid by December 31, 2022, up to $20,000 will be forgiven.
4. How will I receive the funds? How long does it take?
You will receive the funds approximately 10-15 business days after all required documents are signed and submitted to the federal government. The funds will be deposited automatically in your account once the federal government sends us the funds.
5. How can my business use these funds?
These funds are made available to help businesses pay non-deferrable operating expenses including, payroll, rent, utilities, insurance, property tax, and regularly scheduled debt service. It may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions, or increases in management compensation.
6. What happens on January 1, 2023?
Your remaining balance will be converted to a three-year term loan with a 5% interest rate if:
- You have borrowed $60,000, but have not repaid $40,000 by December 31, 2022.
- You have borrowed $40,000, but have not repaid $30,000 by December 31, 2022.
7. Will I need to come in to the branch to apply?
You are not required to come in to the branch to apply for this program. We are able to process your application through our secure email process.
8. What is the secure email portal, and why is SCU using it?
In order to maintain the security of your confidential information, we are using our secure web portal to send and receive your documents. When we email you the application forms, you will receive instructions on how to access the secure web portal to retrieve your email.
Please ensure you respond to SCU through this secure portal when sending in your application.
9. If I’m a new applicant, do I have to borrow the full $60,000?
Yes, the new CEBA loan amount is $60,000, so new applicants will receive the full amount.
10. If I don’t repay the required percentage by the deadline, can I receive partial forgiveness?
You are not able to receive partial forgiveness. In order to receive any forgiveness, you must repay the full required amount:
- $40,000 if you have borrowed $60,000
- $30,000 if you have borrowed $40,000
1. How do I know if I qualify for the CEBA?
- You must have an active CRA business number with a registration date prior to March 1, 2020
- If you’ve been operating out of a personal account, you will need to open a business account
You have not received a CEBA loan at SCU or any other financial institution
In addition, your businesses may apply for CEBA if you meet one of the following criteria:
Your business paid between $20,000 and $1.5 million in total payroll in 2019, reported in Box 14 of the 2019 T4SUM
Your business is obligated to pay between $40,000 and $1.5 million in non-deferrable expenses in 2020 (e.g. employee wages or rent payments)
In addition, to Government of Canada outlines other criteria to qualify, which includes:
- Your business is not a government organization or body, or an entity owned by a government organization or body;
- Your business is not a union, charitable, religious or fraternal organization or entity owned by such an organization or if it is, it is a registered T2 or T3010 corporation that generates a portion of its revenue from the sales of goods or services;
- Your business is not an entity owner by individual(s) holding political office; and
- Your business does not promote violence, incite hatred or discriminate on the basis of race, national or ethnic origin, colour, religion, sex, age, or mental or physical disability.
2. Can sole proprietors qualify for the CEBA?
Yes, the eligibility requirements apply to all business types.
3. Can I still qualify under the previous payroll qualifications?
Yes, if you haven’t received a CEBA loan, you can still qualify under the existing CEBA criteria, which requires the business to report between $20,000 and $1.5 million in payroll.