The Canadian Government has just launched an interest free loan program for businesses impacted by COVID-19. The Canada Emergency Business Account (CEBA) is intended to help small businesses who have been completely or partially closed due to the Pandemic. The CEBA is 100% funded by the Canadian government.
What is CEBA?
CEBA is a loan for qualifying small/medium businesses of up to $40,000 with the following conditions:
0% Interest until December 31st, 2022.
No minimum monthly principal payments required until December 31st, 2022.
Principal payments can be made at any time.
Up to $10,000 is eligible for loan forgiveness provided that the outstanding balance is re-paid on or before December 31st, 2022.
If the business is unable to pay the loan back by the deadline, it may be converted into a 3-year term loan with an interest rate of 5% per annum.
Is Your Business Eligible?
To qualify your Business or Not-for-profit for CEBA through Momentum Credit Union, the following requirements must be met:
Must have contributed between $20,000 to $1.5 million to payroll in 2019.
Must have been in good financial health prior to the COVID-19 outbreak.
Must have been operating as of March 1st, 2020.
Your business has identified Momentum Credit Union as its primary bank on or before March 1st 2020.