Last chance for CEBA is TODAY – August 31, 2020
As of today, the last date to apply for a Canada Emergency Business Account loan is today.
For those corporations and businesses which qualify and apply, CEBA provides a loan of up to $40,000. The loan comes from your bank, but is guaranteed by the federal government. No interest is charged until December 31, 2022. If the loan is repaid by then, 25% of the loan is forgiven (usually $10,000).
If repayment is not made by December 31, 2022, the loan begins to bear interest at 5%, and needs to be repaid over 3 years or less.
To apply, entities with more than $20,000 in payroll in 2019 or 2018 (and less than $1,500,000) need to apply stating that exact payroll amount, their business number and their bank account number (including the branch). The application is made on-line at the website of the bank or financial institution which holds your main business account.
Corporations or sole proprietorships with payroll of less than $20,000 may qualify if they reported some business income (or farm, fishery or professional income) in 2019 or 2018. Applicants need to state the exact amount of business income from their 2019 (or 2018) tax return. As a result, rental property owners with rental income, but too little payroll and no business (or similar) income, may well not qualify.
As well as business income, entities with a payroll of less than $20,000, need to be able to show at least $40,000 of 2020 expenses, which cannot be postponed until after 2020. Those expenses can be property taxes, fixed loan payments, utilities or other expenses related to the business. After the application is made to the bank, the applicant needs to upload proof of those expenses to a government website. The upload needs to be made by September 3.
Individuals or corporation who operate as property managers would generally earn business income, and should qualify for CEBA if they have the wages or other expenses to qualify.
For more information, google search CEBA and your bank or other financial institution, or contact your financial institution, immediately. Apply today or miss out.
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