The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits to help cover their operating costs during a period where their revenues have been temporarily reduced.

UPDATE: CEBA has been extended to Oct 31 (

Who is eligible for the Canada Emergency Business Account (CEBA)?

  • Must be a Canadian operating business in operation as of March 1, 2020 (holding companies do not qualify)
  • Must have a federal tax registration
  • Must have had payroll expenses in the 2019 calendar year of between $20,000 and $1,500,000 (as reported in Box 14 of your 2019 T4SUM)

What can I use the money for?

The funds from the loan are to be used to pay for operating costs that cannot be deferred, such as:

  • payroll
  • rent
  • utilities
  • insurance
  • property tax
  • regularly scheduled debt service

It may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, or distributions and increases in management compensation.

What are the repayment details?

  • The CEBA will be funded as a revolving line of credit
  • There will be no fees or interest until December 31, 2022
  • 25% ($10,000) of the loan will be forgiven if 75% ($30,000) of the loan is fully repaid on or before December 31, 2022
  • Any outstanding balance after December 31, 2022 will be converted to a 3 year term loan until December 31, 2025
  • A 5% interest rate will apply to this outstanding balance on January 1, 2023 

How do I apply?

You must apply at your businesses' primary financial institution. This is defined as the financial institution where your business performs the majority of its day-to-day banking, including employee payroll, supplier payments, collection of receivables and other cash management activities.

Financial InstitutionApplication Link

Can I receive the loan from more than one bank?
No. You cannot be enrolled in the CEBA program at more than one financial institution.

How long does it take for the loan money to be deposited?
In most instances, funds will be deposited within approximately five to ten business days.

Are there any penalties if I repay the loan early?

No. The loan can be repaid at any time without penalty, and 25% ($10,000) of the loan will be forgiven if 75% ($30,000) of the loan is fully repaid on or before December 31, 2022.

I am a sole proprietor, can I apply?

No. The Canada Emergency Business Account is available only to businesses with employee payrolls between $20,000 and $1,500,000 in 2019.

*For additional details about this loan program, please contact your primary financial institution.


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