CEBA - Additional FAQ information released

On June 15, 2020, the CEBA website was updated to include additional FAQ questions. The additions focus on the the details and differences between the applying under the “Non-Deferrable Expenses Steam” as compared to the “Payroll Stream”. In a separate announcement, the Prime Minister stated that applications under the expanded program would commence on Friday June 19, 2020.

In particular:

• applications under the Payroll Stream (total employment income paid to employees in 2019 greater than $20,000 and less than $1,500,000) will be completed directly through the financial institution in which your business holds its primary business chequing / operating account. The Government of Canada will notify your financial institution and provide funding for your CEBA loan.

• applications under the Non-Deferrable Expenses Stream (total employment income paid to employees in 2019 of $20,000 or less, and 2020 Eligible Non-Deferrable Expenses - subject to adjustments for support or subsidies under other Government of Canada COVID response programs - greater than $40,000 and less than $1,500,000) will follow a two-step process:

  • Step 1: Businesses will initiate applications directly at their primary financial institution where they hold their primary business chequing / operating account. The financial institution will then direct applicants to Step 2 of the application process.

  • Step 2: Following the initial application through your financial institution, applicants will be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.

    If successful, the Government of Canada will notify your financial institution and provide funding for your CEBA loan.

Additional documents required will include:

• The name of the financial institution where you submitted your application; and

• Your 9-digit business number (same number you used in your application with your financial institution); and

• Electronic or paper copies of Receipts / Invoices / Agreements to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.

The other FAQs added include:

• How will I be able to apply for CEBA when the expanded eligibility criteria become effective?

• Preparing to apply for the Non-Deferrable Expenses Stream — what supporting documents do I need?

• What are the Eligible Non-Deferrable expense categories?

• What are the other Government of Canada COVID response programs that will cause adjustments to the amount of 2020 Eligible Non-Deferrable Expenses that can be reported?

• If I’m applying through the Payroll Stream, what do I do if I have more than one Canada Revenue Agency (CRA) Payroll Program Account?

• What if I run more than one business?

• What if I run my business out of a Personal Bank Account?

• Once the expanded eligibility criteria become effective, how long will it take to process my application and when can I expect to receive funding?

• What do I do if my business is declined?

CEBA website