More small businesses can soon access the Canada Emergency Business Account
“Our government is providing support to small businesses, so that they can keep their doors open, keep their employees on the job, and be better positioned once the economy begins to recover. We want businesses to know that we are there for them, and that we are listening to their concerns. Based on the feedback we have received on the CEBA, we are pleased to make adjustments to the program and expand it so that it can help more small businesses.”
- Bill Morneau, Minister of Finance
“Since the beginning of this pandemic, we promised to do whatever it takes to help small businesses through this unprecedented crisis. The CEBA loan is one of the many ways we’re supporting them – and with almost 670,000 businesses across the country benefitting from this lending support, we know it’s making a real difference for people. By expanding the eligibility for this loan, even more business owners – including sole proprietors – will get the support they need to help them restart and begin to rebuild in the weeks and months to come.”
- Mary Ng, Minister of Small Business, Export Promotion and International Trade
The government will be working closely with participating financial institutions in coming days to ensure they are positioned to deliver the expanded CEBA loans on behalf of their customers, as early as June 19, 2020.
Launched on April 9, 2020, CEBA provides zero-interest, partially forgivable loans to small businesses that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes and employment costs. By assisting these businesses in servicing their non-deferrable costs, CEBA is intended to facilitate the post-COVID resumption of normal business operations.
CEBA is delivered by Export Development Canada (EDC), which is working closely with Canadian financial institutions to deliver the loans to their existing business banking customers.
When first launched, CEBA was designed to allow for rapid deployment of credit to businesses with 2019 payroll between $50,000 and $1 million. The government then expanded the eligibility parameters of the program, by increasing the payroll eligibility range to between $20,000 and $1.5 million.
Since CEBA’s launch, more than 669,000 loans have been approved, representing a total of more than $26 billion in credit disbursed.
The government is also supporting Canadian businesses through the COVID-19 outbreak with targeted new initiatives that:
- Provide a forgivable loan through the Canada Emergency Commercial Rent Assistance for small businesses to qualifying commercial property owners, who in turn give a rent reduction of at least 75% for April and May (retroactive) and June, to impacted small business tenants who have experienced at least a 70% drop in pre-COVID-19 revenues.
- Provide effective support to those eligible employers that are hardest hit by the COVID-19 pandemic through the Canada Emergency Wage Subsidy (CEWS). The CEWS applies at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week, per employee. The program is in place from March 15 to August 29, 2020. Employers of all sizes from across the economy are eligible, with certain exceptions including public sector entities.
- Allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments, as well as customs duty payments owed for imports, until June. This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses. It will help businesses so they can continue to pay their employees and their bills, and help ease cash-flow challenges across the country.
- Defer the payment of income taxes. The government is allowing all taxpayers to defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18, 2020. This relief, amounting to $55 billion in liquidity support, would apply to new balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
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Office of the Minister of Finance
Department of Finance Canada
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