CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

UPDATED

The Government of Canada has announced a new CEBA loan in the amount of $60,000, which will launch on November 30,2020.  CEBA has also been extended to December 31, 2020, making the program more accessible to businesses.  The updated program will also allow businesses currently using a personal account to operate their business to apply. 

In addition, CEBA applicants who have previously received a loan can apply for the $20,000 expansion by clicking here.

For more details please visit the Government of Canada site for additional information.

OVERVIEW

The Canada Emergency Business Account (CEBA) provides a $40,000 loan for eligible small businesses and not-for-profit members. This federal program is designed to help cover operating costs for organizations experiencing temporary revenue reductions.

Terms and Conditions of the Canadian Emergency Business Account:

  • The loan will be offered at 0% interest until December 31, 2022
  • $20,000 (33.33%) of the $60,000 loan is eligible for complete forgiveness if $40,000 is fully repaid on or before December 31, 2022.
  • If the loan is not repaid by December 31, 2022, an interest rate of 5% per annum will apply during the extension period. Outstanding principal of the loan must be fully repaid by December 31, 2025.

If a default occurs in any scheduled payment under this agreement, Northern Credit Union may demand payment of all unpaid amounts due, including without limitation all principal and interest. Events of default include:

  • Default in paying any amount due hereunder.
  • Default in paying any other loan.
  • Failure to comply with any of the provisions of this Agreement.
  • Making any false or misleading representation, including without limitation, in your application for the Loan or the information you have certified.
  • Commit an act of bankruptcy or become insolvent, or
  • A receiver is appointed for your business or any part of your property.

ELIGIBILITY

To apply for the $60,000 interest free CEBA loan, please click the link below.

  1. Must be a business (i.e., not a holding company) in operation before March 1, 2020.
  2. Must be a current Northern business member with an active business operating account. Northern Credit Union must be your primary financial institution and you must open a business account prior to funding your CEBA loan.
  3. You must complete the CEBA 4.0 pre-qualification, prior to completing a Northern Credit Union application, by visiting:
    https://verify-verifier.ceba-cuec.ca/
  4. If your business paid between $20,000 to $1,500,000 in total payroll:

    a. Your organization's 2019 T4 Summary of Remuneration Paid (T4SUM). If you cannot locate your T4SUM, please contact the Canada Revenue Agency or your payroll provider.

    b. Your business has a 15-digit Canada Revenue Agency Number.

    c. You agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, and property tax.

    d. You are not applying for this loan at any other financial institution.
  5. If your payroll is lower than $20,000, in addition to the above, you will need:

    i. Tax return for the year- end ending in calendar year 2019 (or if tax return for 2019 have not yet been submitted 2018; and

    ii. Proof of eligible non-deferrable expenses of between $40,000 and $1,500,000 (these expenses are defined in the application but include expenses such as rent/lease, insurance, property taxes, utilities, scheduled debt payments).

Members must complete their CEBA applications by March 31, 2021 if they wish to utilize this emergency government benefit.

Please see the CEBA website​ for information regarding application deadlines.

CEBA FREQUENTLY ASKED QUESTIONS

HOW LONG WILL IT TAKE TO PROCESS THE LOAN?

Your application will be reviewed for eligibility, after completion of the CEBA pre-qualification, and submitted to the Federal Government for approval and funding.  Upon approval, you’ll receive a confirmation email from Northern Credit Union or your Business Relationship Manager will contact you directly. The $60,000 loan will be deposited into your existing business account. The loan will be visible to you through Online Banking and on your monthly bank statement.

APPLICATION PROCESS

Step 1: Complete this online form. Once complete, click 'Submit' to send to Northern Credit Union.

Step 2: Authentication by secure message or phone call.
We will review your application and contact you by phone within two business days to verify your identity and confirm your application details.
Note: Once we authenticate you, please allow approximately 10 business days to receive the funds into your account.

Step 3: If your payroll is between $20,000 and 1,500,000 no further action is required.If your payroll is less than $20,000 or you have no employment income, you are required to digitally upload proof of non-deferrable expensed directly to the Government of Canada. Further details will be provided in the form.

Step 4: Northern Credit Union will submit the information to the government within one business day of confirming your identity and details.

Step 5:  Once approved Northern Credit Union will send you the required loan documentation to complete prior to funding. Step 6: Northern Credit Union will fund the money into your Northern Credit Union business account (current account).

HOW CAN I GET MY 2019 T4SUM SUMMARY OF REMUNERATION PAID?

Contact the Canada Revenue Agency for your 2019 T4SUM Summary of Remuneration Paid.

I AM A SOLE PROPRIETOR WHO USES A PERSONAL ACCOUNT FOR THEIR BUSINESS. CAN I STILL APPLY?

No, CEBA is only available to business members who meet the eligibility criteria.

Please visit the Government of Canada’s COVID-19 Economic Response Plan to view other programs.

https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Businesses

IF I HAVE MULTIPLE BUSINESSES CAN I APPLY FOR CEBA?

Yes, each business that meets the eligibility criteria may apply for CEBA

MY BUSINESS ACCOUNT HAS MULTIPLE SIGNATORIES REQUIRED TO SIGN ON BEHALF OF THE COMPANY. CAN I STILL APPLY?

Yes, ensure that only one of the authorized signors apply for the loan. We cannot accept multiple applications for the same business. Each signatory will be required to sign for the loan application once approved.

WHAT WILL MY LOAN PAYMENT BE?

The loan is interest-free until December 31, 2022. Also, no principal repayments are required during this period unless you are seeking to repay $40,000, or 66.66% of the loan, to qualify for the $20,000 forgiveness feature.

If you choose to extend the loan beyond this date, an interest rate of 5% will apply during the extension period. We’ll provide you more information on interest payments during the extension period once the program is in place.

WHAT HAPPENS IF I DEFAULT ON THE LOAN?

If a default occurs in any scheduled payment under this agreement, at its option the lender may demand payment of all unpaid amounts due, including without limitation all principal and interest. Events of default include:

  • default in paying any amount due hereunder
  • default in paying any other loan outstanding,
  • you fail to comply with any of the provisions of this Agreement,
  • you make any false or misleading representation, including without limitation, in your application for the Loan or the information you have supplied.
  • you commit an act of bankruptcy or become insolvent, or
  • a receiver is appointed for your business or any part of your property.