As proven by the multitude of updates, extensions, and additional programs created, the Federal Government has shown its inclination to evolve its COVID-19 support for individuals and businesses as the pandemic continues to impact everyday life across the country. Continuing this trend, the Federal Government announced an extension of the Canada Emergency Business Account (CEBA) application deadline from March 31 to June 30, 2021.
CEBA represents an interest-free, partially forgivable loan of up to $60,000 for small businesses and not-for-profit organizations. These organizations must have been operational and registered on or before March 1, 2020, have an active CRA Business Number, and a business chequing/operating account. If the loan balance is repaid on or before December 31, 2022, 33% of the loan will be forgiven and represent taxable income of the business. Applications are submitted through existing financial institutions.
The deadline extension applies to any new CEBA loans of $60,000 and existing loans to businesses that are applying for the additional CEBA loan amount of $20,000. Further information about the CEBA loan can be found here. If you have any questions about the CEBA loan, how to apply, or why it may be beneficial for your business, please contact your Bateman MacKay Business Advisor.
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