Feds provide more support for small businesses

Small businesses continue to face challenges and uncertainty during the COVID-19 pandemic and the government is providing support to ensure they can stay in business.

Since the spring, the Canada Emergency Business Account has helped almost 800,000 small businesses and not-for-profits in Canada. The federal government has announced the expansion of the Canadian Emergency Business Account (CEBA).

“Small businesses are the heart of Canada’s communities and the engine of our economy,” said Mary Ng, Minister of Small Business. “Our government is committed to supporting small business owners through the pandemic and beyond. Expanding CEBA loans to $60,000 will help give hard-working Canadian business owners the support they need to weather today’s challenges and build towards a brighter future.”

Starting on December 4, 2020, eligible businesses facing financial hardship as a result of the COVID-19 pandemic are able to access a second CEBA loan of up to $20,000 – on top of the initial $40,000 that was available to small businesses.

Half of this additional financing, up to $10,000, will be forgivable if the loan is repaid by December 31, 2022.

This means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid on time.

As announced in the Fall Economic Statement, the application deadline for CEBA has also been extended to March 31, 2021.

To apply, eligible businesses and not-for-profits need to contact the financial institution that provided their initial CEBA loan and provide the appropriate information and documentation.

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