PM's Update - Expansion to CEBA loan program

  • Canada Emergency Business Account (CEBA) loans program will be expanded for those:

    • who are sole owner-operators;

    • that depend on contractors; and

    • that are family businesses that pay employees by dividends rather than payroll.

  • As well, CEBA will be modified to become available to new businesses (those which have never filed a tax return) and businesses which do not have “business accounts” at the bank, but operate through personal accounts.

  • To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:

    • a business operating account at a participating financial institution;

    • a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return; and

    • eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

PM’s Press Release