Eligibility expanded – Canada Emergency Business Account

Sited from CIBC

We understand that many businesses – particularly owner-operated businesses – are struggling through the negative effects of COVID‑19 on their operations and we’re here to help. We’re reaching out to update you that the Canada Emergency Business Account (CEBA) is being expanded to allow more Canadian businesses and not-for-profits to access funds to cover operating costs and other non-deferrable expenses.

What has changed?

Eligibility to apply is now open to businesses with annual payroll less than $20,000 during 2019, and eligible non-deferrable expenses for 2020 projected to be between $40,000 and $1.5 million (including rent, property taxes, utilities, and insurance).

With this change, there are now two ways to apply based on your organization’s circumstances:

1.Simplified payroll-based: businesses with annual payroll between $20,000 and $1.5 million (based on the sum of all employment income reported on all employee T4s for 2019) will apply via CIBC Online Banking® for Business, using their CIBC Business Convenience Card and 15-digit Canada Revenue Agency (CRA) Payroll Number.2.*NEW* Non-deferrable expense-based: businesses with annual payroll less than $20,000 during 2019, and eligible non-deferrable expenses for 2020 projected to be between $40,000 and $1.5 million, will apply via a two-step process. First, initiate an application through CIBC Online Banking® for Business, and second, upload evidence of eligible non-deferrable expenses via the Government of Canada’s CEBA website for verification. To complete this application process, clients will need to have: 

•a 9-digit CRA Business Number; •the ability to provide verifiable business information from their most recent CRA business tax filing (2018 or 2019); and•evidence of eligible non-deferrable expenses for 2020 (e.g. commercial leases, property tax statements, utility bills) to upload to the Federal Government’s website.

Who is eligible?

Businesses and not-for-profits are eligible to apply through CIBC if they have:

•an operating company registered in Canada on or before Ma‍rch 1, 202‍0; •CIBC as their primary bank. This means that the organization uses a CIBC Business Operating Account (opened on or before Ma‍rch 1, 202‍0) for day-to-day payments and cash management activities. Otherwise, please apply through the financial institution that holds your primary Business Operating Account; •good standing as an existing borrower, meaning you were not in arrears on existing borrowing facilities with CIBC, if applicable, by 90 days or more on Ma‍rch 1, 202‍0; and•up‑to‑date business contact information, including phone number and email address.

Please note: If your business has received other Federal Government relief, depending on the amount received, you may not be eligible for CEBA.

How do I apply?

You can apply for CEBA online only. Please ensure your business is registered for CIBC Online Banking® for Business, and if it isn’t, please register here using your CIBC Business Convenience Card number or visit our Canada Emergency Business Account FAQs page for details on what to do if you don’t have a CIBC Business Convenience Card number.

All completed applications will be reviewed and verified by the Federal Government. Once approved, you will receive a confirmation email from CIBC, and the $40,000 loan will be deposited into your existing CIBC Business Operating Account. 

For full details about the Federal Government’s eligibility criteria, qualifying non-deferrable expenses (if applicable), and application process, please visit our Canada Emergency Business Account FAQs page.

Helping your business navigate through uncertain times

CIBC stands ready with the advice, solutions, and support you need to manage through these challenging times and beyond. CEBA is just one of the financial relief measures available to help you and your business. Please visit our COVID‑19 business pageregularly for the most up-to-date information on all relief measures available or speak with your CIBC Advisor.

Jane Zhao