The Government of Canada is committed to taking immediate, significant and decisive action to help Canadians deal with the impact of the COVID-19 pandemic.
As part of their COVID-19 Economic Response Plan, they have created the Canada Emergency Business Account, which is now open for applications.
What is the Canada Emergency Business Account Loan Program?
Businesses across Canada have faced an unprecedented cash flow crisis in recent weeks thanks to closure notices and physical distancing. The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where revenues have been temporarily, yet severely reduced.
In an effort to ensure this badly needed capital flows to businesses who need it, the Government of Canada has made eligibility criteria as simple as possible. Eligible businesses must:
- Demonstrate they paid between $50,000 and $1 million in total payroll in 2019
- Hold a federal tax registration
- Be a Canadian operated business in operation as of March 1, 2020
- Use fund from the program to only pay non-deferrable operating expenses (examples include payroll, rent, utilities, insurance, property tax and regularly scheduled debt services
- Hold an active chequing/operating account with the Lender, which is its primary financial institution. The account was opened on, or prior to, March 1, 2020, and was not in arrears on existing borrowing facilities with the Lender by 90 days or more as at March 1, 2020.
Individual Lenders may have their own specific criteria to be aware of.
This government guaranteed loan of up to $40,000 is interest-free until December 31, 2022. Twenty-five per cent of the loan amount ($10,000) is eligible for forgiveness as long as the business pays back $30,000 on or before December 31, 2022. If the business cannot pay back the loan by then, it can be converted into a three-year term at an interest rate of 5 per cent.
How to Apply
Interested parties are invited to apply through their own financial institution. Find the links below to your bank/credit union for further details:
Find Out More
Small Business BC has recently launched the B.C. Business COVID-19 Support Service to host all COVID-19 content and resources in one area. You’ll be able to talk to an advisor via live chat, or speak to them over the phone.
VISIT SUPPORT SERVICE WEBSITE
Here to Help
At Small Business BC, we’ve got the resources and supports you need for your business to succeed. This November, we’re offering all webinars and Talk to an Expert Advisory sessions for FREE.
Join us on November 18th for Build. Grow. Thrive. a FREE day of education, networking and fun designed to help your business build resiliency in the face of COVID-19.
Want to grow your customer base? Add your business to our BC Marketplace and tap into a province-wide audience looking to shop local and support small businesses like yours.