By Nizam Shajani, CPA, CA, MBA
Prime Minister Trudeau and the Department of Finance announced changes to the Canada Emergency Business Account (CERB).
The account will provide interest-free loans in the form of lines of credit of up to $40,000 to businesses with payrolls of between $20,000 and $1.5 million in the 2019 year. This is a change from the previous qualification of payroll between $50,000 and $1.0 million.
A quarter of this loan (up to $10,000) is eligible for complete forgiveness if the loan is repaid by December 31, 2022. After this date the loan will be converted to a 3-year term loan charging an interest rate of 5%.
The CERB applications opened on April 9th and businesses are able to apply via their financial institution website.
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