UPDATE: APRIL 30 2020
To our Small Businesses,
On March 27, The Government of Canada announced that it will be providing the Canada Emergency Business Account (CEBA) to support businesses that are affected by COVID-19. This offer will provide interest-free loans, of $40,000, to small businesses and non-profit organizations to help cover their operating costs during a period where their revenues have been temporarily reduced.
We are pleased to announce that Churchbridge Credit Union will be able to offer the CEBA support before the end of April for our existing business members. This offering will only be available through an online application process.
What is the Canada Emergency Business Account (CEBA)?
- The CEBA provides a government guaranteed loan for $40,000 to help cover operating costs that cannot be deferred, as a result of COVID-19.
- The loan will be funded as a $40,000 term loan, 0% interest and no payments until December 31, 2022.
- No interest applies until January 1, 2023.
- Any balance owing on January 1, 2023 will be converted to a 3-year term loan subject to a 5% interest charge with fixed monthly payments due the last day of each month.
- If you repay $30,000 (75% of the balance of the term loan) on or before December 31, 2022, the remaining $10,000 of your term loan will be forgiven.
- If you do not repay 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.
Who can apply?
Business members or not-for-profit members registered in Canada, who use a Churchbridge Credit Union business account for daily operating of their business.
What are the Eligibility Requirements?
The eligibility criteria are as follows, per the Government of Canada’s requirements:
- You use a business account at Churchbridge Credit Union for daily operations of your business. The account was opened on or prior to March 1, 2020.
- Your business has been a registered and operational business on or before March 1, 2020.
- The person enrolling for the Canada Emergency Business Account must have the ability and authority to bind the organization.
- Your payroll expense is between $20,000 and $1.5 million. To confirm this, you will be required to provide the following information:
- Employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid.
- Employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid.
- A copy of your 2019 T4 Summary of Remuneration Paid, if requested.
- As per the requirements set out by the Government of Canada, you must agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax.
When and how can I apply?
The Canada Emergency Business Account (CEBA) application is now available through Churchbridge Credit Union. Members can access the Online Application by clicking HERE.
If you do not have Online Banking, or require assistance with the application, please contact your Loans Officer directly, or call us at 1-877-890-2797. We are here to help.
*enrollment option may change.
What can you do to prepare for the CEBA?
Have your 2019 T4 Summary of Remuneration Paid statement available. If you do not have it, you should contact the Canada Revenue Agency. This is required for the enrollment/qualification process.