Canada Emergency Business Account

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Canada Emergency Business Account

The Canada Emergency Business Account (CEBA) was introduced by the Government of Canada in cooperation with Export Development Canada to help Canadian Businesses obtain financing during the COVID-19 pandemic.

This program provides interest-free loans of up to $40,000 to small businesses and not-for-profits to help cover operating costs when impacted economically by the COVID-19 virus. Business owners will soon be able to apply to this fund via SASCU.

CEBA can help pay for costs such as payroll, rent, utilities, insurance, property tax, or debt service.

Key points:

  • Eligibility:
    • Canadian employers with $20,000 to $1.5 million in total payroll in 2019
    • operating as of March 1, 2020.
    • intends to continue to operate or to resume operations
    • has not previously used the Program and will not apply for support under the program at any other financial institution.
  • If the loan is repaid by December 31, 2022, 25 per cent (up to $10,000) will be forgiven.
  • If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5 per cent interest.

See the Government of Canada website for the latest program details.

Application to CEBA will be available via SASCU April 30, 2020. 

Please review the FAQs before applying.

Apply now




FAQ

See the Government of Canada website for the latest program details.

How do I apply for this program?

As a SASCU business member, you may apply via online banking:

  1. Log into online banking
  2. Click "Account Services"
  3. Select "Canada Emergency Business Account application"
Apply now

If you do not have online banking, contact SASCU Commercial Centre at 250.833.1301.

What information will I need to complete the application?


Ensure you are eligible for the program by reviewing Government of Canada website.

You will need this information handy to complete the application:

  • Business name
  • Employer Account Numbernas reported at the top of your T4 Summary
  • Employment income (Box 14, 2019 T4 Summary T4 Summary remuneration paid)


Can I go apply for the program at any bank or other credit union?

This loan must be taken out through your primary financial institution.

How do I qualify?

All credit-worthy businesses with viable business models whose activities fall within the mandate are eligible to benefit from CEBA. Businesses must also be registered in Canada and will need to prove that between $20,000 to $1.5 million was paid out in total payroll in 2019.

What are the details of the loan?

CEBA will provide interest-free loans of up to $40,000 to eligible businesses. To qualify, businesses will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000). The CEBA will be implemented by eligible financial institutions in cooperation with Export Development Canada and the Department of Finance.

How long until I can access this program?

The Ministry of Finance together with EDC are working together with your credit union to put the necessary processes in place to ensure all eligible small business members at all of Canada’s credit unions can access the funding. Currently this is expected to happen in the next week or so.

What can I do in the meantime?

If you are an eligible small business, you should reach out to your credit union where you have your banking business to let them know you plan to apply for the CEBA. Credit unions will begin gathering the details necessary to qualify you for the funding.

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

After your credit union has been onboarded to the program and you have completed the application once it is ready, your application will be assessed and money will be deposited in your account, likely within 2- 4 business days.

How is the loan distributed?

The loan will be deposited in your account after the loan is approved.

What is the interest rate on the loan?

The $40,000 loan is interest-free and no principle payments will be required until December 31, 2022. $10,000 is eligible for complete forgiveness if $30,000 is fully repaid before December 31, 2022.

Who can I contact for more information?

You can reach out to SASCU Commercial Centre  at 250.833.1301 for more information on this program and other supports available. Also, visit the Government of Canada website for the latest details of the program.