Canada Emergency Business Account

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Update (Friday, July 24, 2020): The Canadian government recently announced the eligibility expansion to the Canada Emergency Business Account (CEBA) Program. Under the expansion, businesses with less than $20,000 payroll may now qualify for the program. Atlantic Credit Unions have worked tirelessly with government to prepare for this program and applications under the expanded eligibility are now available. To apply, select your credit union using the menu below.


Atlantic Credit Unions are pleased to be partnering with the Government of Canada to offer the Canada Emergency Business Account (CEBA) to help support our small businesses suffering as a result of COVID-19. Eligible businesses can apply for an interest-free term loan (up to $40,000) to cover short-term operating expenses, payroll, and other non-deferrable expenses, which are critical to sustain business continuity.

If the loan is repaid on or before December 31, 2022, 25 per cent (up to $10,000) will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven. If the loan is not repaid by December 31, 2022, the full loan balance will be converted into a three-year term loan at 5 per cent interest per annum, payable monthly on the last day of the month.

To apply, select your credit union using the menu below.


What is the CEBA program?

Up to $40,000 interest-free loan to help you cover operating costs you were not able to defer because of COVID-19

25% (up to $10,000) of the loan proceeds is eligible for complete forgiveness if loan is repaid on or before December 31, 2022

If the loan cannot be repaid by December 31, 2022 it can be converted into a 3-year loan with a fixed interest rate of 5% per annum


How does the CEBA loan work?

The loan will be funded as a term loan (up to $40,000), 0% interest and no payments until December 31, 2022.

No interest will apply until January 1, 2023.

Beginning January 1, 2023, interest accrues on the balance of the term loan at a fixed rate of 5% per annum, payable monthly on the last day of the month.

If you pay 75% of the balance of the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven.

If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.


What’s the eligibility criteria?

As set out by the Government of Canada, your business is eligible if it:

Is a Canadian operating business in operation as of March 1, 2020

Has a banking or borrowing relationship with the credit union as of March 1, 2020, and the credit union is your primary financial institution

Has a business chequing/operating account with the credit union, which was opened on or before March 31, 2020 and is in good standing

Does not have any loans with the credit union in arrears by 90 days or more as at March 1, 2020

Has a Canada Revenue Agency Business Number, and has filed tax return(s) with Canada Revenue Agency for 2019 and/or 2018

Has not previously received CEBA through the credit union or any other financial institution

Is not a non-profit organization, charity, union, or a fraternal benefit society, unless your organization earns revenue from regularly supplying property, goods and/or services

Intends to continue operating or to resume operations

Has payroll of between $20,000 and $1,500,000 for the 2019 calendar year

CEBA criteria has now been expanded to include the following:

Has eligible non-deferrable expenses in the 2020 calendar year between $40,000 and $1,500,000

Total income paid to employees in 2019 was $20,000 or less OR if the borrower declares no income was paid in 2019


How can I apply?

To apply for the program, select your credit union using the menu below.