The Canada Emergency Business Account (CEBA)
The government recently announced that a new application stream is being added to the CEBA Program called a Non-Deferrable Expenses Stream. Eligible small businesses that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs such as rent, property taxes, utilities and insurance will also be able to receive a loan of up to $40,000 to help cover operating costs during a period where their revenues have been temporarily reduced.
CEBA Program Update
Effective June 19, 2020 there are two CEBA application streams. A new stream has been added (‘Non-Deferrable Expenses Stream’) to include eligibility for small businesses that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs such as rent, property taxes, utilities and insurance.
An eligible small business must have total employment income paid to employees in 2019 of $20,000 or less and 2020 eligible non-deferrable expenses (subject to adjustments for support or subsidies under other Government of Canada COVID response programs) greater than $40,000 and less than $1,500,000. Expenses will be subject to verification and audit by the Government of Canada.