Canada Emergency Business Account (CEBA) Frequently Asked Questions

What is the Canada Emergency Business Account (CEBA)? Expand/Collapse

The Government of Canada recently announced that it will be providing the Canada Emergency Business Account to support Canadian businesses that have been adversely affected by COVID-19. Eligible businesses will receive a $40,000 loan for immediate financial support to cover short-term operating expenses, payroll and other non-deferrable expenses that are critical to sustain business continuity.

What do I need to apply? Expand/Collapse

You’ll need to provide some program-specific documentation. Here’s a list of what will be required:
  • A copy of your business’ T4 Summary of Remuneration Paid (T4SUM) for the 2019 business year
  • Your tax registration number from the Canada Revenue Agency
In addition, you will be required to sign an attestation confirming that your business meets the program requirements.

Where do I find my Business Number? Expand/Collapse

The Business Number (BN) is issued by the Canada Revenue Agency. It's 15 digits long and follows a format similar to: xxxxxxxxxRPxxxx. Your BN is featured at the top of your 2019 T4 Summary of Remuneration Paid (T4SUM). It's very important to include the correct BN in your application.

Do I use my Business trade name or the legal name of my business? Expand/Collapse

You must use the exact, legal business name as per Canada Revenue Agency.

What if I haven’t submitted/received a T4 summary? Expand/Collapse

At this time, you are not eligible for the CEBA program if you do not have a 2019 T4 Summary (T4SUM). If you have not received it or have lost it, please contact the Canada Revenue Agency to have them reissue your 2019 T4 Summary of Remuneration Paid (T4SUM) .

How long will it take me to receive the money after I’ve applied? Expand/Collapse

Your application will be reviewed for eligibility and submitted to the federal government for funding. This entire process can take up to five business days from the date of your submission. Upon approval, you’ll receive a confirmation email from Kindred Credit Union or your Account Manager will contact you directly. The $40,000 loan will be deposited into your existing business account. The loan will be visible to you through Online Banking and on your monthly bank statement.

I am a sole proprietor and I use a personal account for my business. Can I still apply? Expand/Collapse

No, CEBA is only available to business members who meet the eligibility criteria.

Please visit the Government of Canada’s COVID-19 Economic Response Plan to view other programs.

https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Businesses

If I have multiple businesses, can I apply for CEBA? Expand/Collapse

Yes, each business that meets the eligibility criteria may apply for CEBA.

My business account has multiple signatories required to sign on behalf of the company. Can I still apply? Expand/Collapse

Yes, however, please be sure that only one of the authorized signors apply for the loan. We cannot accept multiple applications for the same business. Each signatory will be required to sign the loan documentation once approved.

What interest rate will I pay on the loan? Expand/Collapse

The $40,000 loan is interest-free. A quarter of the loan ($10,000) is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022. If the loan cannot be repaid by December 31, 2022, it can be converted into a 3-year term loan with an interest rate of 5%.

When will I start having to repay the loan? Expand/Collapse

A quarter of the loan ($10,000) is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022. After this date, the loan can be converted into a 3-year term loan with an interest rate of 5%.

What will my loan payments be? Expand/Collapse

The loan is interest-free until December 31, 2022. No principal repayments are required during this period unless you plan to repay $30,000, or 75% of the loan, to qualify for the $10,000 forgiveness feature.

If you choose to extend the loan beyond this date, an interest rate of 5% will apply during the extension period. We’ll provide you more information on interest payments during the extension period once the program is in place.

 
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