Minister of Finance Bill Morneau announced that as of Friday, June 19, 2020, applications will be accepted so that more small businesses can access the Canada Emergency Business Account (CEBA). This means that owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll will become eligible this week.
To qualify under the expanded eligibility rules, CEBA applicants with payroll lower than $20,000 will need:
- A business operating account at a participating financial institution;
- A Canada Revenue Agency business number;
- A 2018 or 2019 tax return; and
- Eligible non-deferrable expenses of between $40,000 and $1.5 million.
Eligible businesses will qualify for financing of up to $40,000, with 25 per cent of this being forgivable based on the current terms of CEBA loans. Businesses can contact their primary financial institution for more information or to apply directly for CEBA. More information on the expanded CEBA can be found on the program’s website. More information about the announcement here.
The Canada Emergency Response Benefit (CERB) was developed as a 16-week program which means it will run out for many recipients in the coming weeks. In response, Prime Minister Trudeau told reporters today that the government is looking to extend the CERB for those who can not yet return to work. Treasury Board President Jean-Yves Duclos said that the situation for many in Canada has changed since the program was rolled out, so the extension will include new parameters. More details are expected in the coming days. More information here.