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Canada Emergency Business Account & Commercial Rent Assistance


CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

May 19, 2020

The Federal government is attempting to expand eligibility for the CEBA program to include:

Sole proprietors who receive income directly from the business, perhaps with no or minimal payroll

Businesses that rely on contractors rather than employees

Family-owned corporations that pay employees through dividends rather than payroll

The eligibility criteria has been expanded for those businesses with payroll less than $20,000

To qualify the following criteria must be met:

Have a business operating account at a participating financial institution

Have a Canada Revenue Agency business number and have filed a 2018 or

2019 tax return

The business would need to have eligible non-deferrable expenses between

$40,000 and $1,500,000

Eligible non-deferrable expenses could include rent, property tax, utilities and insurance

Expenses will be subject to verification and audit by the Government of Canada

Application process to be announced within the week

To date, 600,000 CEBA loans have been made under the original rules

The Federal government is working on solutions where the business uses a personal bank account or circumstances where a tax return has not been filed such as a new business

https://pm.gc.ca/en/news/news-releases/2020/05/19/prime-minister-announces-expansion-support-workers-and-small


CANADA EMERGENCY COMMERCIAL RENT ASSISTANCE (CECRA)

May 19, 2020

Canada Mortgage and Housing Corporation has made a substantial update to their site on the CECRA including the following:

Why property owners should apply for CECRA for small businesses

They provide a numerical example of how the program works

How do I apply for CECRA for small businesses program

Staggered application days depending on the region of Canada

What you need to apply

Templates of the attestation forms, rent reduction agreement and forgivable loan agreement

List of required information that you will need to apply

Who is eligible to apply for the CECRA for small businesses program

How does the CECRA for small businesses program work

FAQs for property owners

FAQs for small business tenants

The application portal is expected to be launched in the second half of May

https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business



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