CEBA EXPANDED WITH $20,000 MORE
In an effort to continue to support businesses that have been impacted by the COVID-19 Pandemic, the Government of Canada has expanded the Canada Emergency Business Account (CEBA) Program to allow businesses with an existing CEBA loan to apply for a $20,000 expansion i.e. to increase their existing CEBA loan amount from $40,000 to $60,000.
Eligible businesses that are approved by the Government of Canada will have access to the additional $20,000 to help pay for eligible non-deferrable operating expenses such as rent, payroll and insurance which are critical to sustain business continuity.
All applicants have until March 31, 2021, to apply for $60,000 CEBA loan or the $20,000 expansion.
An increase of $20,000 to the existing government‑guaranteed loan to help eligible businesses continue to pay for operating expenses, payroll and other non-deferrable expenses which are critical to sustain business continuity.
Until June 30, 2021, the Canada Emergency Business Account will be funded as a revolving line of credit for $60,000. The loan can be repaid in part or in full at any time.
After June 30, 2021, any outstanding balance on the revolving $60,000 line of credit will be converted into a non-revolving term loan maturing on December 31, 2025.
If your organization repays $40,000 of the loan by December 31, 2022, then loan forgiveness of $20,000 will apply (your organization won’t have to pay that amount back).
No interest applies until January 1, 2023.
Commencing on January 1, 2023, interest accrues on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of each month. The full amount of the loan (including principal and interest) is due and payable on December 31, 2025
Complete CEBA program details can be found on the Government of Canada website..
Feel free to reach us for any questions regarding the program. You can call our office number or fill in Get in Touch Form.