Canada Emergency Business Account
The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.
This program will roll out in mid-April, and interested businesses should work with their current financial institutions. *Speak with an accountant and financial institution regarding your particular business situation.
The Canada Emergency Business Account will provide qualifying business customers with access to a $40,000 line of credit:
at 0% interest until Dec 31, 2022
requires no minimum monthly principal payments until December 31, 2022
principal repayments can be made at any time
$10,000 loan forgiveness is available provided outstanding balance is fully paid on or before Dec 31, 2022.
As per the requirements of the program set out by the Government of Canada, customers and clients must agree to use funds to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, and property tax.
Government of Canada support for businesses, click here