What expense can you use for CEBA fund?

No matter what stream you applied CEBA for most recent loan agreement has specified that the funds must be use for Eligible Non-Deferrable Expense.

The Eligible Non-Deferrable Expense categories are the following:

  • 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;

  • Payments incurred for materials consumed to produce a product ordinarily offered for sale by the Borrower.

The 40K of such expenses required to be eligible must be either in jan or Feb 2020 or be payable later where a “legal or contractual obligation existed on March 1, 2020 for the applicants to pay the expense within the remainder of 2020 and which can not be avoided or deferred beyond 2020.

Jane Zhao