Canada Emergency Business Account (CEBA)
As part of COVID-19 relief measures, the Government of Canada announced a new program to support Canadian business called the Canada Emergency Benefit Account (CEBA) in cooperation with Export Development Canada (EDC).
CEBA will help eligible small businesses and not-for-profits have access to the capital they need by providing interest-free loans of up to $40,000 to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus. This access to capital will help small businesses and not-for-profits to continue providing services to their communities and keep their employees on payroll.
If the loan balance is repaid by the borrower on or before December 31, 2022, $10,000 of the $40,000 (or 25% of the value of the loan) will be forgiven.
Can I apply for the CEBA at BCU Financial?
BCU Financial is now accepting applications for the Canada Emergency Business Account.
Members interested in this program should contact their local BCU Financial Branch and enquire about the CEBA.
CEBA applications will be sent to the Government of Canada and EDC through our partners at Central 1.
Qualifying applications may take up to 5 business days to process once submitted by BCU Financial.
PLEASE NOTE THAT THE UPDATED CEBA APPLICATION FOR PHASE II, WHICH INCLUDES SOLE PROPRIETORS, IS STILL UNDER DEVELOPMENT BY THE GOVERNMENT OF CANADA AND EDC. PLEASE VISIT OUR WEBSITE FOR UPDATES.
For more detailed information, please contact your local BCU Financial Branch.
Who is eligible for the CEBA?
Canadian businesses in operation as of March 1, 2020 are eligible for CEBA with the following criteria:
Who does not qualify for the CEBA?
The following entities are not eligible for the CEBA:
What can the CEBA funds be used for?
The funds from this loan are only to be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, but not limited to, payroll, rent, utilities, insurance, property taxes and regularly scheduled debt service.
The funds may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
For more information on the Canada Emergency Benefit Account (CEBA), please click here https://ceba-cuec.ca/