Cash Flow · Financial Support · Top Resources Today April 2nd, 2020

Updated: Understanding the $40,000 Canada Emergency Business Account (CEBA) loan


April 9, 2020: Many Canadian financial institutions have started taking applications for the CEBA. We’ll be compiling a list below, but please let us know via our resource submission form.

April 16, 2020: The payroll window for eligibility has been increased to $20,000 (down from $50,000) to $1.5 million (up from $1 million).

May 19, 2020: The program will be expanded to include new businesses, sole owner-operators, contractor-dependent businesses, and family businesses that pay employees by dividends, and the payroll window for eligibility has been increased from $0 to $1.5 million.


While there are not a lot of details yet about the Canada Emergency Business Account loan, Canadian businesses should start seeing details arrive over the next few weeks, to be launched in the third week of April 2020.

This is a $25b program that will be managed via Export Development Canada (EDC), but will be administered via your financial institution.

Who will qualify?

Small businesses and non-profits who paid up to $1.5 million in total payroll expense in 2019.

Updated May 19, 2020: For organizations with payroll lower than $20,000, the organization will need:

  • a business operating account at a participating financial institution;
  • a CRA business number and to have filed a 2018 or 2019 tax return; and,
  • eligible non-deferrable expenses between $40,000 and $1.5 million, which could include rent, property tax, utilities, or insurance.

How much is the loan?

The maximum loan amount will be $40,000, will be interest-free, and will be a personally-guaranteed loan.

On December 31, 2020: The line of credit turns into a five-year loan, which will be interest-free with no minimum monthly principal payments until December 31, 2022.

On January 1, 2021: If 75% (up to $30,000 for the full loan amount) of the loan is repaid by December 31, 2022, the remainder of the loan (up to $10,000) will be forgiven.

On January 1, 2023: An interest rate of 5% per annum will be applied to the loan.

How can I apply?

You will need to have the amount from Box 14 as indicated on your 2019 T4SUM form, as submitted to Canada Revenue Agency, and you will have had to have opened a business account with your financial institution before March 1, 2020.

The following banks and financial institutions have launched enrollment forms (click on the institution name for the link):

If your financial institution has not been listed here, and you’re aware of the link, please let us know right away.

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