Announced in late October, the Canada Emergency Business Account (CEBA) loans now have an increased limit of $60,000 and applications for a new or increased loan amount are now available. Companies who have already received the initial $40,000 loan have access to an additional loan amount of $20,000, $10,000 of which will be forgivable if repaid by December 31, 2022. Companies who have not received a CEBA loan can receive the full $60,000, of which, up to $20,000 will be forgiven if the remainder is paid on or before December 31, 2022. Business owners must be aware that the full amount of the forgiven amount of the loan will represent taxable income of the business.
Eligibility requirements have also broadened as the previous condition of having an active business chequing/operating account has been removed. All applicants have until March 31, 2021, to apply for the additional funds. Full details along with a Q&A are available on the Government of Canada website and businesses apply through their existing financial institution. If you have any questions concerning CEBA or any other COVID-19 Federal Support Program, please reach out to your Bateman MacKay Business Advisor.
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