December 7, 2020
Last week Friday the Canadian government announced that the $20,000 top up to the Canadian Emergency Business Account (CEBA), initially announced on October 9, 2020, would be available to businesses starting on Friday, December 4th. If you recall, the CEBA loans are loans of up to $40,000 for eligible businesses, of which up to $10,000 is forgivable if the loan is repaid by December 31, 2022. The extension to the CEBA is for an additional loan of up to $20,000 on top of the original $40,000, and half of this additional funding (up to $10,000) will also be forgivable if the loan is repaid by December 31, 2022. What this means is that businesses who access the full $60,000 loan amounts available through the CEBA can have $20,000 of these loans forgiven if the balance of the loans is paid by December 31, 2022.
The CEBA is administered by Export Development Canada, and the loans themselves are delivered through financial institutions. In order to apply for this extension, businesses need to contact the financial institution through which they received their initial CEBA loan.
The application deadline for the CEBA has also been extended to March 31, 2021.
The eligibility requirements for the CEBA extension remain the same as those that were in place for the initial CEBA loan. For more information on the CEBA, the extension, eligibility and exclusions, please click here.
The information contained in this communication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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