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).
As of December 2020, CEBA loans for eligible businesses will increase from $40,000 to $60,000. 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 $20,000, in addition to the original CEBA loan of $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 expansion will be available to all eligible previous and new CEBA applicants.
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.
The CEBA application process follows one of two streams:
If the loan balance is repaid by the borrower on or before December 31, 2022, $10,000 of the original $40,000 loan will be forgiven. Half of the additional $20,000 financing will also be forgivable if repaid by December 31, 2022.
We are aware that some applicants for the CEBA 5.0 $20,000 Expansion are experiencing a problem with their applications at several major financial institutions due to a technical issue with a third party. This issue is affecting some of our BCU Financial members. This was not a problem caused by BCU Financial, but with Export Development Canada (EDC) which processes all CEBA applications from all major financial institutions including credit unions. This issue has resulted in declined CEBA applications due to incorrect BIN and/or CRA numbers when the applications were submitted.
EDC has informed all financial institutions affected by this issue that the problem with the incorrect BIN and/or CRA numbers has not been resolved and, as a result, applicants who have been declined will not have the ability to reapply. We thank our members who have been affected by this issue for their understanding.
The BCU Financial Team
Click here for CEBA 5.0 FAQs
What is the CEBA Application deadline?
All applicants have until June 30, 2021, to apply for the $60K CEBA loan or the $20K loan expansion.
Can I apply for the CEBA at BCU Financial?
BCU Financial is now accepting applications for the Canada Emergency Business Account.
Members must have had an active account at BCU Financial for a minimum of three (3) months.
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 5-15 business days to process once submitted by BCU Financial.
For more detailed information, please contact your local BCU Financial Branch.
Who is eligible for the CEBA?
As of October 26, 2020, eligibility for CEBA has expanded by removing the 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.
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.
CEBA Call Centre
The CEBA Call Centre is now available for members who have inquiries about their applications.
The CEBA Call Centre is open Monday to Friday from 8:00 am to 9:00 pm EST and can be reached at 1-888-324-4201. To learn more, visit https://ceba-cuec.ca/.
For more information on the Canada Emergency Benefit Account (CEBA), please click here https://ceba-cuec.ca/