Expanded CEBA eligibility applications open Friday

On May 19, the Prime Minister announced expanded eligibility of the Canada Emergency Business Account (CEBA), which provides interest-free loans of up to $40,000 to small businesses. These changes create two CEBA application streams: 

1) Payroll stream: for businesses with total employment income paid to employees in 2019 greater than $20,000 and less than $1,500,000 (previously announced – applications are currently available under this stream. Refer to HGA’s summary of the payroll stream here.) 

2) Non-deferrable expenses stream: for businesses with total employment income paid to employees in 2019 of $20,000 or less, and 2020 Eligible Non-Deferrable Expenses (subject to certain adjustments) greater than $40,000 and less than $1,500,000. (applications available starting Friday, June 19). 


HGA Recommends: 

If your company qualifies for CEBA under the expanded eligibility requirements, contact your financial intuition to apply. You must initiate your application through the primary financial institution which holds your primary business chequing/operating account. Please note that businesses which operate out of a personal bank account are not eligible to apply for a CEBA loan. 

Under the non-deferrable expenses stream, following the initial application through your financial institution, applicants will be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application. 


Three pieces of information will be required to complete the second step of this application: 

  1. The name of the financial institution where you submitted your application,
  2. Your 9-digit business number (the same number you used in your application with your financial institution), and
  3. Electronic or paper copies of receipts/invoices/agreements to be uploaded as evidence of your 2020 eligible non-deferrable expenses.  


The following are considered eligible non-deferrable expense categories: 

  • Wages and other employment expenses to independent (arm’s length) third parties; 
  • Rent or lease payments for real estate used for business purposes; 
  • Rent or lease payments for capital equipment used for business purposes; 
  • Payments incurred for insurance related costs; 
  • Payments incurred for property taxes; 
  • Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet; 
  • Payments for regularly scheduled debt service; 
  • Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower. 

In addition, you may be asked to provide details about other government COVID response programs you have received, including the: Canada Emergency Wage Subsidy, 10% Temporary Wage Subsidy, Canada Emergency Commercial Rent Assistance, Regional Relief and Recovery Fund, etc. 

Additional details about the CEBA and FAQs can be found here. 

If you have any additional questions, please contact your HGA Advisor or Natalie Pon at npon@hgacpa.com.