Criteria for Small Business CEBA Loan Program Expanded

The federal government has announced that eligibility criteria for the Canada Emergency Business Account (CEBA) has been expanded to include more small businesses. The program will now be available to businesses with sole proprietors, those that rely on contractors, and family-owned businesses that pay employees through dividends rather than payroll.

TRREB welcomes this announcement as we have been working with CREA in advocating for changes to CEBA that would allow more REALTORS® to access the program, along with other business groups. These changes are expected to benefit Realtors and brokerages.

To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:

•a business operating account at a participating financial institution;
•a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return; and
•eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

More details, including the launch date for applications under the new criteria, are expected in the next few days. In addition, the government will work on potential solutions to help business owners who operate through their personal bank account, as opposed to a business account, or have yet to file a tax return, such as newly created businesses.

Launched on April 9, 2020, CEBA offers interest-free, partially forgivable loans of up to $40,000 to small businesses and not-for-profits that have experienced diminished revenues due to COVID-19, but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes and employment costs. Twenty-five percent of this loan is forgivable if repaid by December 31, 2022.

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