The deadline for new Canada Emergency Business Account (CEBA) applications is being extended from March 31 to June 30, 2021, government officials announced on Monday (March 22).
This extension applies to any new applications for CEBA loans of $60,000 or to new applications from businesses that have already received the $40,000 loan and intend to apply for the additional $20,000.
Launched on April 9, 2020, CEBA provides interest-free loans of up to $60,000 to small businesses, to help cover their operating costs—such as rent, utilities and insurance—during a period where their revenues have been temporarily reduced.
These loans are partially forgivable as repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of up to 33 percent (up to $20,000).
As of March 18, 2021, more than 850,000 CEBA loans have been approved, representing nearly $45 billion in credit disbursed, Ottawa says.
“By supporting Canadian businesses, Canadian jobs and Canadian families, we are not only helping our communities through difficult times; we are preventing economic scarring. This support will allow us to have a full and robust economic recovery, when the virus is fully defeated,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance. “Extending the CEBA application deadline will allow more businesses to access this support and help them manage their operating costs during these hugely difficult times.”
The extension will allow more businesses to access the support they need as Canada’s economy continues to deal with localized public health restrictions and, for a number of businesses, reduced opening hours or reduced demand for services.
Extending the application deadline to June 2021 also aligns CEBA with the timelines of other federal government support programs for business.
To apply for CEBA or to learn more about the program, businesses are encouraged to contact their primary financial institution.
Information can also be found here.
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