Canada Emergency Business Account (CEBA) Loan Refinancing

The CEBA program application period for $60,000 loans and the $20,000 expansion has ended as of June 30th, 2021. Any application that has been submitted prior to that date will be processed provided the correct required documentation was uploaded prior to that time frame. For updates on the status of your application for CEBA funds, contact the CEBA call center at 1-888-324-4201.

If your business was declined for the $20,000 expansion you will be able to update any information submitted on your original application for the $40,000 CEBA loan.

After applying through your financial institution and have followed instructions to upload all required documents for your application, and if all pre-funding eligible validation is successful, then you can expect to have the funds deposited into your business operating account via online banking within 10-15 business days.

The CEBA loan has an interest-free period spanning from the time of getting the loan until January 18, 2024. After that period a 5% annual interest rate will come into effect on the outstanding balance of the CEBA loan until the balance is paid off in full. These monthly payments of interest on the loan will begin January 19, 2024 and the full outstanding principal balance will then need to be repaid no later than December 31, 2026. To that end, CEBA loans that are not paid off in full by January 18, 2024 will no longer be eligible for the forgiveness program of $20,000 off the $60,000.

Per the requirements of the Program, as set out by the Government of Canada, the Borrower confirms that:

• It is not a government organization or body, or an entity wholly owned by a government organization or body;
• It is not a non-profit organization, registered charity, union, or a fraternal benefit society or order, or an entity owned by such an organization, unless the entity is actively carrying on a business in Canada (including a related business in the case of a registered charity) that earns revenue from the regular supply of property/goods or services;
• It is not an entity owned by any Federal Member of Parliament or Senator;
• It does not promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age, or mental or physical disability, contrary to applicable laws.

Small business owners with up to $20,000 in payroll in 2019 will have to demonstrate having Eligible Non-Deferrable Expenses between $40,000 and $1,500,000 in 2020. Expenses that were already incurred in January and/or February 2020 and cannot be avoided or deferred beyond 2020 are considered “Eligible Non-Deferrable Expenses.” Electronic or paper copies of Receipts / Invoices / Agreements are required as supporting documentation.

CEBA supports businesses by providing financing for their expenses that cannot be avoided or deferred as they take steps to safely navigate a period of shutdown, thereby helping to position businesses for successful relaunch when the economy reopens.

Eligible Non-Deferrable Expense Categories

• Wage costs and other employment expenses to independent third parties;
• Rent or lease payments for real estate or capital equipment used for business purposes;
• Payments incurred for insurance costs or property taxes. 
• Payments incurred for business purposes for telephone and utilities (i.e. gas, oil, electricity, water and internet connectivity);
• Payments for regularly scheduled debt service;
• Payments incurred under agreements with independent contractors, as well as fees required to maintain licenses, authorizations or permissions necessary to conduct business;
• Payments incurred for materials consumed to produce products.

For more information about each category of non-deferrable expenses, consult this CEBA user guide.

Qualifying for a CEBA loan requires a unique 9-digit Canada Revenue Agency business number. If you have multiple different businesses, each with different CRA numbers, then each business is limited to one CEBA loan.

In order to be eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan, an applicant must be an active operating business that is a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”) that was in operation in Canada on March 1, 2020. Other types of business entities are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan.