OTTAWA, O.N. – Prime Minister Justin Trudeau announced, Tuesday, an expansion to the eligibility criteria for the Canada Emergency Business Account.
According to Trudeau, this expansion to the CEBA will include many owner-operated small businesses and will help small businesses protect the jobs that Canadians rely on.
“Canadians are counting on us to protect their jobs and help them pay their bills during this difficult time. By expanding the CEBA, we will be giving more businesses access to the support they need, so they can help protect workers and the jobs they rely on. Today we are helping to keep more businesses open and more Canadians working, so we are better prepared for the recovery to come.”
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The Governments says, changes to the CEBA will allow more Canadian small businesses to access interest free loans that will help cover operating costs during a period when revenues have been reduced, due to the pandemic.
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.
- 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.
This measure is part of the Government of Canada’s COVID-19 Economic Response Plan.
Since the CEBA’s launch, over 600,000 loans have been approved, representing a total of more than $24 billion in credit.