Canada Emergency Business Account (CEBA)

Region: Ontario Answer # 7251

To ensure that small businesses have access to the capital they need to see them through the current economic challenges due to COVID-19, the Federal Government has implemented the Canada Emergency Business Account (CEBA). CEBA supports businesses by providing financing for expenses that cannot be avoided or deferred.

How much is the loan?

This program provides interest-free loans of up-to $60,000. For eligible businesses and not-for-profits who have already applied for the previous loan amount of $40,000, as of December 4, 2020 they could be eligible for an additional loan of $20,000.

Who qualifies?

The program offers interest-free loans to:

  • small businesses including those that do not have a payroll,
  • sole proprietors receiving income directly,
  • family-owned corporations receiving dividends rather than payroll, and
  • not-for-profit organizations.

To qualify, a borrower must:

  • open a business chequing/operating account with their primary financial institution
  • have a federal tax registration
  • have employment income paid in the 2019 calendar year, between $20,000 to $1,500,000 (in Canadian dollars). For borrowers with $20,000 or less in total employment income paid in 2019, different requirements apply:
    • the Borrower has a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return
    • the Borrower has eligible non-deferrable expenses between Cdn.$40,000 and Cdn.$1,500,000. 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
  • have not previously used the CEBA, and will not apply for support under the Program at any other financial institution.
  • acknowledge its intention to continue to operate its business or to resume operations, and
  • agree to participate in post-funding surveys conducted by the Government of Canada or any of its agents.

If loan is repaid by December 31, 2022

If a business repays the balance of the loan – on or before December 31, 2022 – 33% of the loan amount (up-to $20,000) will be forgiven, which means it will not have to be repaid.

What is the deadline to apply for CEBA?

  • The June 30, 2021 CEBA application period deadline has passed
    • New applicants can no longer apply for a $60,000 CEBA loan or the $20,000 expansion at their financial institution.
  • For applicants required to requalify under the Non-Deferrable Expense Stream:
    • The October 1, 2021 document submission deadline has now passed
    • The document resubmission deadline is October 29, 2021

The deadlines have now passed for all other CEBA applicants.

How to apply

Small businesses and not-for-profits should contact their financial institution to apply for these loans.

More info

For more detailed and up-to-date information on CEBA, visit Canada.ca. For information on other available supports for businesses and individuals, visit the Government of Canada Economic Response Plan website.

Provincial relief programs for businesses: There may also be financial relief programs and incentives for businesses available from provincial governments. For more info, visit our related links and resources for what is available where you live.

For up-to-date information on Coronavirus COVID-19, visit Health Canada, the World Health Organization, and our related links.


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