Currently, the CEBA provides interest-free loans of up to $40,000 to eligible businesses and non-profit organizations. The CEBA funds are intended to be used to pay for non-deferrable operating expenses including payroll, rent, utilities, insurance, property tax and regularly scheduled debt payments. In addition, provided that 75% of this loan is repaid on or before December 31, 2022, the business may receive loan forgiveness of 25% (i.e.: up to $10,000).

On October 9, 2020, the Federal Government announced that the deadline for CEBA applications would be extended to December 31, 2020.

The Federal Government also announced that it would expand the CEBA program to allow eligible businesses and non-profit organizations that continue to be seriously impacted by the COVID-19 pandemic, to access an additional interest- free loan of up to $20,000. Up to 50% of this additional financing would be forgivable if the balance is repaid by December 31, 2022. An attestation of the impact of COVID-19 on the business may be required to access the additional financing.

Finally, on October 26, 2020, the Federal Government announced that the CEBA will now be available to businesses that have been operating out of a non-business banking account. To be eligible, these businesses must have been operating as of March 1, 2020 and must open a business account at Canadian financial institution that is participating in CEBA, as well as meet the existing CEBA eligibility criteria.

Further details on the CEBA program expansion and application process have not yet been released. We will provide additional updates as they become available.

Please contact your Shimmerman Penn advisor for further guidance and to discuss your particular situation.