Canada Emergency Business Account
CEBA has been extended to March 31, 2021.
To provide additional financial support to Canadian small businesses during this time of unprecedented economic challenge brought on by the COVID-19 pandemic, the Government of Canada, alongside its partners EDC and Canada’s financial institutions, are now offering an increase in support for eligible CEBA applicants.
As of December 4, 2020, CEBA loans for eligible businesses will increase from $40,000 to $60,000.
- The CEBA program will now provide access to an additional $20K to eligble borrowers who already received a $40,000 loan and $60,000 for new applicants to CEBA.
Applicants who have received the $40,000 CEBA loan may apply for the $20,000 expansion, which provides eligible businesses with an additional $20,000 in financing.
All applicants have until March 31, 2021, to apply for the $60,000 CEBA loan or the $20,000 expansion.
Full program information is available from the Government of Canada CEBA website.
Posted December 15, 2020
To be eligible, businesses must have been operating as a business as of March 1, 2020, must successfully open a business account at a Canadian financial institution that is participating in CEBA, and meet the other existing CEBA eligibility criteria. The deadline to apply for CEBA is March 31, 2021.
The Canada Emergency Business Account (CEBA) is also available to businesses that have been operating out of a non-business banking account.
To qualify for CEBA, all applicants must have:
- An active Canada Revenue Agency (CRA) business number with an effective date of registration on or prior to March 1, 2020;
- meet the payroll eligibility criteria; or
- demonstrate a minimum of $40,000 in eligible non-deferrable expenses, and have filed a 2018 or 2019 tax return.
To assess their eligibility for CEBA, applicants can use the pre-screening tool on the CEBA website. A handy guide on how to use the tool can be dowloaded here: CEBA Pre-Screening Tool Guide. To apply for CEBA, businesses should contact their financial institution and provide the appropriate information and documentation. Applicants may contact the CEBA Call Centre at 1-888-324-4201 to receive a status update on a completed application between Monday to Friday from 8 a.m. to 9 p.m. EST.
Already applied for CEBA?
If you have already applied for a CEBA loan and have questions, please contact the new CEBA Call Centre at 1-888-324-4201 for a status of your application. The Call Centre is open Monday to Friday from 8:00 am to 9:00 pm EST. You can apply for a CEBA grant online when you log into your business account at UCU
How do I apply for a CEBA grant?
- You must complete the CEBA application by March 31st, 2021 (scroll down to the Apply for CEBA online at UCU section below for instructions on how to do it).
- After completing the application, you must upload supporting documentation.
- We recommend that you provide your supporting documents through the application-demande.ceba-cuec.ca site as soon as you are directed to do so when filling out your application online (via your UCU online banking account).
- Supporting documentation is a critical part of the application processes and delays in providing this information can result in a delay in the pre-funding eligibility validation and funding process.
Applying for a CEBA loan
If you qualify, you will need to supply a T4 Summary and sign a loan application agreement. The minimum expected wait to get your funds once your application is submitted is 2-5 days. At the moment, we have to process applications by email with your branch, pending the imminent launch of our online channel.
What are the eligibility requirements for the CEBA?
- The Borrower is a Canadian operating business in operation as of March 1, 2020.
- The Borrower has a federal tax registration.
- The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000. For applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year:
- The Borrower has a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return.
- The Borrower has eligible non-deferrable expenses between Cdn.$40,000 and Cdn.$1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.
- The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
- The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.The Borrower acknowledges its intention to continue to operate its business or to resume operations.
- The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
What are the Eligible Non-Deferrable expense categories?
The Eligible Non-Deferrable Expense categories are the following:
- Wages and other employment expenses to independent (arm’s length) third parties;
- Rent or lease payments for real estate used for business purposes;
- Rent or lease payments for capital equipment used for business purposes;
- Payments incurred for insurance related costs;
- Payments incurred for property taxes;
- Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
- Payments for regularly scheduled debt service;
- Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.
Apply for CEBA online at UCU now!
You can now apply for the CEBA loan online through your UCU business account.
This is a very simple process. All you have to do is:
- Log into in your business account.
- Go to Account Services link
- Select the Canada Emergency Business Account (CEBA) Link
After submitting your CEBA Application, please send a copy of all supporting documents to CEBA@ukrainiancu.com. We will forward the Loan Agreement for you to sign.
If you are having trouble filling out the form, or if you have any questions, please contact Lesya Babiy, Manager of Business Services firstname.lastname@example.org.
You can check the status of your CEBA Loan online at https://status-statut.ceba-cuec.ca/.
Please wait 5 to 7 business days after finalizing your application before checking the status. The CEBA loan status website will be able to address the following types of questions:
- What is the status of my application?
- Why was my application declined?
- How can I fix those errors (if applicable)?
If you have questions after checking your status online, please contact the CEBA Call Centre at 1-888-324-4201. An agent will return your call between Monday and Friday from 10:00 a.m. to 9:00 p.m. EST.
A Word of Caution to our Members
UCU will contact you directly -please do not click on or open any emails relating to the CEBA program unless you recognize the sender and are expecting an email from UCU. If you are unsure, please contact us by telephone before you click on any links, or send any confidential information. You can find contact info for your local branch here: Contact Us. We will notify you when your loan proceeds have been deposited to your UCU Business Chequing Account.”
CRA Deposit Enrollement for Businesses
At the moment the CRA Direct Deposit enrollment feature availble in our online banking system is available to individuals.
However, businesses can enroll for CRA Direct Deposit through the CRA website.
Below is some information that can be very helpful in registering your business with CRA and setting up the Direct Deposit:
1. If the you haven't registered your business for CRA page yet, the business owner could do this through the following page: CRA Direct Deposit. Click on the "Business" tab once you land on this page.
Here is a helpful video guide on how to do this: Webinar: How to Register My Business.
2. When you accesses the CRA MyBA page, you can do various tasks to address business needs.The webinar video on different functions available on that page is very beneficial for business owners to watch: Webinar: My Business Account.
3. For Direct Deposit purposes provide the following UCU information:
Routing number: 0828
Transit number: 01972
Account number: input 9 or 11 digit account number held at UCU, that the CRA Direct Deposit goes into.
Answers to frequently asked questions
What businesses and organizations qualify?
Canadian businesses in operation as of March 1, 2020 are eligible for CEBA as long as they:
- have a federal tax registration
- had a total payroll of between $20,000 and $1,500,000 in 2019
- maintain an active business chequing/operating account with the Lender (UCU), which is its primary financial institution, opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with UCU by 90 days or more as at March 1, 2020
- have not previously received CEBA support and will not apply for support under the Program at any other financial institution
- acknowledge an intention to continue to operate your business or to resume operations
- agree to participate in post-funding surveys conducted by the Government of Canada or any of its agents
What businesses and organizations do not qualify
The following entities are not eligible for the CEBA:
- government organizations or bodies, or entities owned by a government organization or body
- union, charitable, religious or fraternal organizations or entities owned by such an organization or if it is, it is a registered T2 or T3010 corporation that generates a portion of its revenue from the sales of goods or services
- entities owned by individual(s) holding political office
- entities which promote violence, incite hatred or discriminate on the basis of sex, gender, sexual orientation, race, ethnicity, religion, culture, region, education, age or mental or physical disability
What can you use CEBA funds for?
The funds from this loan are only to be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, but not limited to, payroll, rent, utilities, insurance, property taxes and regularly scheduled debt service.
The funds may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
What’s the eligibility criteria for CEBA?
- The person enrolling must have the ability and authority to bind the organization
- The organization is a Canadian operating business in operation on or before March 1, 2020
- The organization has an active business banking account with UCU which is its primary Financial Institution. This business account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with UCU by 90 days or more as at March 1, 2020
Can I enroll for CEBA at more than one Financial Institution?
No. Businesses must enroll for the Canada Emergency Business Account at their primary financial institution where they have an existing business banking account and cannot apply at more than one financial institution. Doing so may result in legal prosecution by the federal government.
What happens if there are multiple owners in my business?
Only one person from the organization can agree to the legal documents in the online enrollment process for the Canada Emergency Business Account. The person enrolling your organization must have the legal authority to attest on behalf of the organization and legally bind the organization to the terms of the Canada Emergency Business Account loan agreement. For example, if more than one person is normally required to sign legal documents for your organization, whether under your internal requirements or your agreement with UCU, your organization has to ensure the proper documentation, like a resolution to waive the requirement for multiple signatories for the purpose of enrolling the organization in the Canada Emergency Business Account, it is made to legally permit a designated person to enroll and sign on behalf of the organization. If the other usual signatories for your organization agree, then the designated person can go ahead and enroll.
CEBA EXPANSION FAQS
|Who can apply for the $20,000 expansion?||Applicants with a $40,000 CEBA loan may apply for the $20,000 expansion.|
|I already repaid my original CEBA loan. May I apply for the $20,000 expansion?||Yes, you may apply for the $20,000 expansion at the financial institution that provided you with your original CEBA loan.|
|What are the repayment terms for the $40,000 and $60,000 loan and the $20,000 expansion?|
The following terms apply to all CEBA loans (original loan and expansion loan):
Repayments & Maturity:
|Can I apply for an amount other than $20,000 for the expansion?||Applicants applying for the expansion can only apply for the full $20,000.|
|Can I still apply for a $40,000 loan instead of a $60,000 loan once the expansion is available at my financial institution?||Once your financial institution begins to offer the $60,000 loan you may no longer apply for $40,000.|
|How can I apply for the $20,000 expansion?||Please contact the financial institution that provided you with your original CEBA loan to apply for the $20,000 expansion.|
|If my financial institution is not yet offering the $20,000 expansion, can I apply for the it elsewhere?||No, you must apply for the $20,000 expansion at the financial institution that provided you with your original CEBA loan.|
|Do I need to submit a new application for the $20,000 expansion?|
Yes, you will need to submit a new application and attestation to the financial institution that provided you with your original CEBA loan.
You will not need to resubmit your original application, or re-upload expense documents.
|I applied for a CEBA loan before the expansion was announced. Can I cancel my existing $40,000 loan application and reapply for a $60,000 loan instead?|
Please consult with your financial institution as cancellations may or may not be offered by your financial institution.
Note that choosing to cancel your application will reset adjudication timelines, adding additional processing time. An additional attestation will need to be submitted to apply for a $60,000 loan.
With respect to your existing $40,000 loan application, once you have applied at your primary financial institution, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days. Upon approval of your original loan application, you may then apply for an expansion with your financial institution.
|How long does it take to receive a $40,000 or $60,000 CEBA loan?|
Once you have applied at your financial institution, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.
|What are the terms of the forgiveness?|
If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Maximum Amount Borrowed: $40,000
Maximum Amount Borrowed: $20,000
Maximum Amount Borrowed: $40,000
If you borrowed more than $40,000 and up to $60,000:
If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed and are described here.
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid.
Note: some financial institutions may record your $40,000 loan and $20,000 expansion as two separate loans. For the purposes of loan forgiveness, borrowings and repayments on both loans will be aggregated.
Maximum Amount Borrowed: $60,000
Maximum Amount Borrowed: $50,000
Maximum Amount Borrowed: $60,000
If you fully repaid your original $40,000 loan, claimed forgiveness, and thereafter received the $20,000 expansion:
Repaying the outstanding balance of the $20,000 expansion (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 50 percent (up to $10,000).
Maximum amount Borrowed: $20,000
Maximum amount Borrowed: $20,000
|Will I automatically get approved for the $20,000 expansion if I have successfully received a CEBA loan, or is there a chance I will get declined?||Applicants who received a $40,000 loan must apply separately for the $20,000 CEBA expansion. In instances where additional information is needed from you or your financial institution relating to your original loan application, or if post-funding validations identified a discrepancy between your original loan application and CRA records, your expansion application may be declined. Depending on the reason for decline, you may or may not be able to remedy your application.|
|I have been declined for the $20,000 expansion, how should I proceed?||Depending on the reason for decline, you may or may not be able to remedy your application. Your financial institution will be notified and will instruct you on the next steps if any action or input is required from you.|
|What is the application deadline for the $20,000 expansion?||The deadline to apply for the $20,000 expansion at your financial institution is March 31, 2021.|
|How long does it take to receive the $20,000 expansion?||Once you have applied at your financial institution and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.|