CEBA provides interest-free, partially forgivable loans up to $40,000 to small businesses that have experienced diminished revenues due to COVID-19 and who face ongoing non-deferrable costs such as payroll, rent, utilities, insurance, property tax and regularly scheduled debt service. Twenty-five per cent of the loan is forgivable if repaid by December 31, 2022.
When introduced, narrow eligibility criteria requiring a minimum payroll excluded many solo and small firms. A subsequent expansion of the program allowed businesses with a payroll less than $20,000 to access this support as long as other criteria are met, including having non-deferrable expenses in 2020 between $40,000 and $1.5 million. The scope of businesses eligible for CEBA was widened to include small owner-operated businesses that do not have a payroll, family-owned corporations that pay employees in dividends and sole proprietors. This change effectively opened up the benefit to more solo and small firms.
Learn more about eligibility for CEBA.