This CEBA loan program provides interest-free loans of up to $60,000 to small businesses and not-for-profits that have been seriously impacted by the pandemic.

If the balance of the loan has been repaid on or before December 31, 2022, 33% of the loan ($20,000) will be forgiven. 

As of October 26, 2020, eligibility for CEBA expanded by removing the previous March 1, 2020 condition for having an active business chequing/operating account. With this removal, eligible businesses can now apply after opening a business chequing/operating account with their primary financial institution. For more information about this new criteria see the section below on “About the CEBA expansion.”

As of December 4, 2020, approved CEBA applicants can now receive a $60,000 loan. CEBA applicants who have received the $40,000 CEBA loan may apply the CEBA expansion, which provides eligible businesses with an additional $20,000 of financing. 

The CEBA application process follows one of two streams: 

1. The Payroll Stream (Applicants with employment income paid in the 2019 calendar year between Cdn.$20,000 and Cdn.$1,500,000) 
2. The Non-Deferrable Expense Stream (Applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year).

Every applicant must meet the following criteria:

• Has an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
• Has an active business chequing/operating account with the Lender at the time of applying for CEBA. Note: If Borrower currently does not have a business chequing/operating account the Borrower must create one at their primary financial institution before applying for CEBA.
• Has not previously used the Canada Emergency Business Account Program (the “Program”) and will not apply for support under the Program at any other financial institution.
• Intends to continue to operate its business or to resume operations.
• If you fall into the Payroll Stream and once you have completed the application with your financial institution, the Government of Canada will assess the application and inform your financial institution of the approval or decline of the loan. If approved, your financial institution will provide the funds into your business chequing / operating account.

If you fall into the Non-Deferrable Expenses Stream you must also meet the following criteria:

• Have eligible non-deferrable expenses between Cdn. $40,000 and Cdn. $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.
• Filed an income tax return with the CRA with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018.

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

Step 1: Complete the online Pre-Screen Tool. The Pre-Screen Tool is not a CEBA application and is solely intended to provide a non-binding indication of eligibility to inform your decision of whether to apply for a loan. If you are declined at this step you can still apply for CEBA and therefore still need to complete the next two steps as identified.

Step 2: Businesses will initiate applications directly through filling out the application 

https://ceba.concentra.ca/?institutionNumber=83924

Once we receive the application, we will be in touch to activate Step 3 of the application process.

Step 3: Once we have received your application, you will then be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.

The Government of Canada will assess application information submitted with the supporting documentation and information provided in Step 3. If successful, the Government of Canada will notify us and provide funding for your CEBA loan.

Applicants with a $40,000 CEBA loan may apply for the $20,000 expansion. To apply, click here https://ceba.concentra.ca/?institutionNumber=83924

Yes, you may apply for the $20,000 expansion. To apply, click here https://ceba.concentra.ca/?institutionNumber=83924

The following terms apply to all CEBA loans (original loan and expansion loan):

Interest:

• 0% per annum interest until December 31, 2022

• 5% per annum interest starting on January 1, 2023; interest payment frequency to be determined by your financial institution

Repayments & Maturity:

• No principal repayment required before December 31, 2022

• If loan remains outstanding after December 31, 2022, only interest payments required until full principal is due on December 31, 2025

Debt Forgiveness:

• If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by December 31, 2022, the remaining principal amount will be forgiven, provided that no default under the Loan has occurred

Applicants applying for the expansion can only apply for the full $20,000. 

For existing CEBA loan, click here to apply for the expanded program https://ceba.concentra.ca/?institutionNumber=83924

If you are a new applicant click here to fill out the EDC pre-screen tool to see if you may be eligible. 

No, under the expanded program you may no longer apply for $40,000.

As long as your existing CEBA loan is with Princess Credit Union and meets the eligibility criteria, you may apply here https://ceba.concentra.ca/?institutionNumber=83924

Yes, you will need to submit a new application and attestation to the financial institution that provided you with your original CEBA loan.

You will not need to resubmit your original application, or re-upload expense documents.

To apply, click here. https://ceba.concentra.ca/?institutionNumber=83924

Choosing to cancel your application will reset adjudication timelines, adding additional processing time. An additional attestation will need to be submitted to apply for a $60,000 loan.

With respect to your existing $40,000 loan application, once you have applied, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days. 

Upon approval of your original loan application, you may then apply for an expansion and can do so by clicking here. https://ceba.concentra.ca/?institutionNumber=83924

Once you have applied, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.

If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Example 1:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2022: $30,000
Available Forgiveness: $10,000

Example 2:
Maximum Amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $15,000
Available Forgiveness: $5,000

Example 3:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2022: $25,000
Available Forgiveness: $0

If you borrowed more than $40,000 and up to $60,000:
If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed and are described here.

Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
• 25 percent on the first $40,000; plus
• 50 percent on amounts above $40,000 and up to $60,000.

For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid.

Example 4:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2022: $40,000
Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)

Example 5:
Maximum Amount Borrowed: $50,000
Amount Repaid By December 31, 2022: $35,000
Available Forgiveness: $15,000 ($40,000 x 25% + $10,000 x 50%)

Example 6:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2022: $35,000
Available Forgiveness: $0

If you fully repaid your original $40,000 loan, claimed forgiveness, and thereafter received the $20,000 expansion:
Repaying the outstanding balance of the $20,000 expansion (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 50 percent (up to $10,000).

Example 7:
Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $10,000
Available Forgiveness: $10,000

Example 8:
Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $8,000
Available Forgiveness: $0

Applicants who received a $40,000 loan must apply separately for the $20,000 CEBA expansion.

In instances where additional information is needed from you relating to your original loan application, or if post-funding validations identified a discrepancy between your original loan application and CRA records, your expansion application may be declined.

Depending on the reason for decline, you may or may not be able to remedy your application.

Depending on the reason for decline, you may or may not be able to remedy your application. You will be notified with instructions on the next steps if any action or input is required from you.

The deadline to apply for the $20,000 expansion at your financial institution is June 30, 2021.

Once you have applied if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.