As of June 26, 2020, owner-operated small businesses that had been previously ineligible for the Canada Emergency Business Account (CEBA) may now apply for the program. Under the updated CEBA regime, those businesses that do not meet the original payroll requirements can apply for CEBA if they meet some additional conditions.
To qualify for the interest-free, partially forgivable loans of up to $40,000, applicants with payroll lower than $20,000 must meet the following additional conditions:
All applicants for the CEBA must apply through their financial institution. Businesses with less than $20,000 in payroll will be required to submit additional documents to the Government of Canada. These documents can consist of electronic or paper copies of receipts, invoices or agreements to support their respective non-deferrable expense total between $40,000 and $1.5 million.
Eligible non-deferrable expenses include:
Eligible non-deferrable expenses in 2020 may be adjusted if the borrower received Government of Canada COVID-19 assistance from programs including the Canada Emergency Commercial Rent Assistance (CECRA), Canada Emergency Wage Subsidy (CEWS), Temporary 10% Wage Subsidy and others.
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