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COVID-19 – Canada Emergency Business Account Changes To Qualify

COVID-19 – Canada Emergency Business Account Changes to Qualify

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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