CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

What is the CEBA loan?

To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada has launched the new Canada Emergency Business Account, which has been implemented by eligible financial institutions including Weyburn Credit Union.

This $25 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period when their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus. This will better position them to quickly return to providing services to their communities and creating employment.

CEBA at a glance:

  • $40,000 interest-free loan to help you cover operating costs you were not able to defer because of COVID-19.
  • $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is 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 loan with an interest rate of 5%.
  • Once your loan application has been reviewed and submitted the process for funding will take up to 7 days from completion.





How does the CEBA loan work? Expand/Collapse

  • The loan will be funded as a $40,000 term loan, 0% interest and no payments until December 31,2022.
  • No interest will apply until January 1, 2023 Beginning January 1, 2023, interest accrues on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of the month.
  • If you pay 75% of the balance of the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven.
  • If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.





Who is eligible for the Canada Emergency Business Account? Expand/Collapse

The eligibility criteria are as follows, per the Government of Canada’s requirements:

  • You are a Canadian operating company (ie. not a holding company) registered and in operation on or before March 1, 2020.
  • Your Annual payroll expense is between $20,000 and $1.5 million, as evidenced on your 2019 T4 Summary of Renumeration Paid (T4SUM).  If you cannot locate your T4SUM contact Revenue Canada for reissue.
  • A 15-digit Canada Revenue Agency Number also shown on your T4SUM.
  • Weyburn Credit Union is your primary financial institution - meaning your everyday business banking account and cash management activities are held with WCU, and opened on or before March 1, 2020.
    • If your everyday business banking account is held elsewhere, please apply for funding through the Financial Institution that holds your primary Business Operating Account.
    • Your account must be in Good Standing as an existing member.





What else can I do? Expand/Collapse

Before applying, we recommend you gather the following information:

  • Locate your 2019 T4 Summary of Remuneration Paid statement, you will need the following
    • Your employer account number, as reported at the top of your 2019 T4 Summary
    • Your employment income reported on box 14 of your 2019 T4 Summary
    • A copy of your 2019 T4 Summary of Remuneration Paid may be requested





Visit the Government of Canada CEBA site for details. If you have questions or would like more information, please reach out to us at 306.842.6641.
 

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