Canada Emergency Business Account

NEW: Businesses operating out of personal accounts can now access CEBA

If you operate your business out of a personal account, you will be required to open a business account in order to be eligible.

Before going through the trouble of opening up a business account, we want you to have some comfort that you’re likely to be approved under the program. To determine your eligibility and the validity of your non-deferrable expenses, please complete the CEBA Pre-Screen tool here.

The Canada Emergency Business Account (CEBA) was launched earlier this year to help businesses cover operating costs during the COVID-19 crisis, where revenue could be reduced. CEBA will provide up to $40,000 to small businesses as an interest-free loan.

If you’re a sole proprietor, farmer, or a business owner that uses contractors or does not have payroll, you may qualify under the expanded CEBA program.

CEBA Call Centre

The Government of Canada has set up a CEBA Call Centre for those who have submitted a CEBA enrollment request and have questions. They can answer questions, such as:

  • What is the status of my application?
  • Why was my application declined?
  • Why was my submitted document rejected?

The CEBA Call Centre can be reached by calling 1.888.324.4201. They are open Monday – Friday from 8:00 am – 9:00 pm EST.

Applications now open

The CEBA application deadline has been extended to December 31, 2020. If you have already applied for a CEBA loan and have questions, please contact the CEBA Call Centre at 1-888-324-4201 for a status update on your application.

APPLY for CEBA

What's the eligibility criteria?

  • Have an Affinity Credit Union business deposit account.
    • If you operate your business out of a personal account, you will be required to open a business account in order to be eligible
  • Your business has been a registered and operational business since on or before March 1, 2020
  • Your business has a federal tax registration
  • Your total employment income paid in the 2019 calendar year was between $20,000 and $1,500,000. If you’re an applicant with $20,000 or less in total employment income paid in the 2019 calendar year:
    • You have a Canada Revenue Agency business number and have filed a 2018 or 2019 tax return.
    • You have eligible non-deferrable expenses between $40,000 and $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.
  • You haven’t previously used the Program and will not apply for support under the Program at any other financial institution.
  • You intend to continue to operate your business or to resume operations.
  • You agree to participate in any Government of Canada post-funding surveys

What’s included in the Eligible Non-Deferrable expense categories?

  • Wages and other employment expenses to independent (arm’s length) third parties;
  • Rent or lease payments for real estate used for business purposes;
  • Rent or lease payments for capital equipment used for business purposes;
  • Payments incurred for insurance related costs;
  • Payments incurred for property taxes;
  • Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
  • Payments for regularly scheduled debt service;
  • Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.

What are the details of the expanded CEBA?

There are now two CEBA application streams:

Payroll Stream:

for businesses with total employment income paid to employees in 2019 greater than $20,000 and less than $1,500,000.

  • If you hold your primary business account with Affinity, you can submit your application under the Payroll Stream using the link above. You will need your 2019 T4SUM statement and 15 digit CRA business number to apply.
  • Once your application has been received and processed by the government, an Affinity advisor will be in touch with you to discuss next steps. Your application will not be approved until all necessary supporting documents are received. You should expect to receive funding within 10-15 business days of approval.

Non-Deferrable Expenses Stream:

for businesses with 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.

  • CEBA applications under the 2020 Eligible Non-Deferrable Expenses Stream will follow a two-step process:

    Step 1:

    • If you hold your primary business account with Affinity, you can initiate an application by using the link above. You will need your 9 digit CRA business number and their 2018 or 2019 income tax (most recent filed) to apply.

    Step 2:

    • Once you apply through us, you’ll be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.
    • you will need three main pieces of information to complete the application:
      1. The name of the financial institution where you submitted your application; and
      2. Your 9-digit business number (same number you used in your application with your financial institution); and
      3. Electronic or paper copies of Receipts / Invoices / Agreements to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.
  • Once your application has been received and processed by the government, an Affinity advisor will be in touch with you to discuss next steps. Your application will not be approved until all necessary supporting documents are received. You should expect to receive funding within 10-15 business days of approval.

How does the CEBA work?

  • The Canada Emergency Business Account will be funded as a term loan for an amount up to $40,000
  • No interest will apply on the loan until January 1, 2023
  • Beginning 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
  • After December 31, 2022, any outstanding balance on the term loan will be converted into a non-revolving 3-year term loan maturing on December 31, 2025, at which time the balance must be paid in full
  • If you pay 75% of the balance owing on the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your initial loan amount was $40,000 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven
  • If you do not repay 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest must be paid in full prior to December 31, 2025.

Where can I find more information?

If you want to know more about eligibility or applying, visit ceba-cuec.ca.