Expansion to the Eligibility Criteria for the $40,000 CEBA
Today the government announced an expansion to the eligibility criteria for the $40,000 Canada Emergency Business Account (CEBA) to include many owner-operated small businesses, enabling them to access interest free loans that will help cover operating costs.
The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.
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.
Expenses will be subject to verification and audit by the Government of Canada. Applications will be available through your financial institution. More details, including the launch date for applications under the new criteria, will follow in the days to come.
The government has also extended the 75% Wage Subsidy by an additional 12 weeks to August 29, 2020.
Your HS & Partners Team