Canada’s banks will begin accepting applications from business customers for the third phase of the federal government’s Canada Emergency Business Account (CEBA) program, starting today.
How do I apply for CEBA?
As announced by the government in May, CEBA has been expanded to enable a greater number of qualifying sole proprietors, or businesses with payroll lower than $20,000, with eligible non-deferrable expenses between $40,000 and $1.5 million to apply for interest-free, partially forgivable loans of up to $40,000. CEBA is administered by Export Development Canada (EDC), which is working closely with banks in Canada to deliver the loans. Full eligibility criteria can be found here: ceba-cuec.ca
“Small businesses are the cornerstone of Canada’s economy and a vital part of our communities,” says Neil Parmenter, President and CEO, Canadian Bankers Association. “With the third phase of CEBA now active, more businesses are eligible to receive the funds they need to stay strong and to thrive during the recovery.”
Notably, the federal government has set out new terms under which phase three of the program will be available. For the first two phases of CEBA, banks would enroll businesses, once they had attested to their eligibility, and provide funding upfront, while EDC would screen for eligibility after the loans had been extended. In phase three, EDC will approve eligibility in CEBA before funding is released. While businesses will still be required to provide an attestation to their primary business financial institution, they will need to provide additional documentation to EDC, before a loan can be approved by EDC.
As of June 15, more than 669,000 CEBA loans have been approved by financial institutions including banks, representing over $26 billion in interest-free credit for eligible businesses.