Canada Emergency Business Account – Update for Non-Business Banking Account Holders

Canada Emergency Business Account – Update for Non-Business Banking Account Holders

OREA asked the Government of Canada to change the eligibility criteria for CEBA to ensure that our members were able to access the program.

Originally posted on Oct 26, 2020 General, Advocacy

On October 26th, 2020, Minister Freeland announced that the Canada Emergency Business Account (CEBA) will be available to businesses that have been operating out of a non-business account through their financial institution. The application deadline for CEBA is December 31st, 2020.

After the program was first announced, OREA asked the Government of Canada to change the eligibility criteria for CEBA to ensure that our members were able to access the program.  

Back in May, OREA CEO Tim Hudak wrote a letter to then-Minister of Finance, the Hon. Bill Morneau, asking that he change the program to allow those using a personal bank account to qualify. In September, OREA wrote to the Federal Government again to urge Hon. Chrystia Freeland to extend the application deadline while the Government continued to negotiate with financial institutions.

OREA is pleased to see the Government extend this program to those who have been waiting months to access much needed financial support for their businesses.

The CEBA program provides an interest-free loan up to $40,000 to small businesses that have experienced a loss in revenue due to COVID-19. Qualifying businesses that had a total payroll between $20,000 and $1.5 million in 2019 are eligible to apply for the loan. If your business can repay the balance of the loan before December 31, 2022, the Government will forgive up to 25% (or up to $10,000) of the original loan.

How am I eligible?

  • Eligible businesses include those who have a payroll between $20,000 and $1.5 million.
  • Businesses that do not have a payroll, sole proprietors receiving business income directly, and family-owned corporations remunerating in the form of dividends rather than payroll as also eligible for the CEBA.

What do I need to apply?

  • Applicants must have an active Canada Revenue Agency business number with an effective date of registration on or prior to March 1, 2020 and either:
    • Meet the payroll eligibility criteria; or,
    • Demonstrate a minimum of $40,000 in eligible non-deferrable expenses and have filed a 2018 or 2019 tax return.

How can I access CEBA?

  • You can apply for CEBA through your financial institution.
  • The Government has developed a pre-screening tool to provide business owners with an indication of their eligibility for CEBA.

What are the next steps for CEBA?

  • On October 9th, the government announced that it is currently working with Export Development Canada and financial institutions to expand the CEBA program by providing an additional interest-free loan of $20,000 for businesses that need it.
  • As with the original program, the government will forgive up to $10,000 of the $20,000 loan if the balance is repaid before December 31st, 2022.
  • More information about the expanded program will be revealed as it becomes available.

How can I get more information about regarding my CEBA application?

  • An FAQ and an instruction guide for CEBA applicants can be found on the Government’s website.
  • The CEBA Call Centre can be reached at 1-888-324-4201 between Monday to Friday from 8 a.m. to 9 p.m.

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