On April 16, 2020 the Government of Canada announced changes to the Canada Emergency Business Account and introduced the Canada Emergency Commercial Rent Assistance program.
Canada Emergency Business Account (CEBA)
The CEBA allows banks and credit unions to lend up to $40,000 to qualifying small businesses and non-profit organizations. These loans are interest free until December 31, 2022. If fully repaid before this date, 25% of the loan (up to $10,000) will be forgiven.
To qualify, businesses now need to demonstrate that they paid between $20,000 and $1,500,000 in total payroll in 2019 as reported on the 2019 T4 Summary filed with CRA. Previously, the range was $40,000 to $1,000,000.
Canada Emergency Commercial Rent Assistance (CECRA)
On April 16, 2020 the Government also announced the new CECRA in order to assist small businesses in paying commercial rent for April, May and June. No specific details were released but are expected soon.
If you have any questions, please contact your Lipton advisor.
