CEBA – Canada Emergency Business Account – Update June 2020
It was announced today that the government will start accepting new applications under the expanded eligibility guidelines for the Canada Emergency Business Account (CEBA) starting on Friday (19 June 2020). The government has expanded program eligibility to include sole proprietors and farmers.
Businesses with total employment expenses in 2019 of $20,000 or less and 2020 Eligible Non-Deferrable Expenses greater than $40,000 and less than $1,500,000 are eligible to apply under the Non-Deferrable Expense Stream using the following two-step process:
Step 1: Businesses will initially apply directly through their primary financial institution. The financial institution will then direct the applicant to Step 2 of the application process.
Step 2: Business applicants will be directed to a new CEBA website by their primary financial institution to upload supporting documentation of their 2020 Eligible Non-Deferrable Expenses and complete the application.
The Government of Canada will assess the information provided in both steps and if successful will notify the financial institution and provide funding of the CEBA loan. Once you have applied at your financial institution, uploaded all necessary supporting documents, and deemed successful by the Government of Canada, businesses should receive funding within 10-15 business days.
Each financial institution is handling the CEBA funds differently. For some, the CEBA funds are deposited directly into their bank account, for others a separate CEBA loan account for clients to draw from and transfer to their operating bank account. We encourage all clients to read the terms and conditions of the loan provided by their bank as it will indicate how the funds will be provided to each business.
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Heather Bowie, CPA, CA
Heather Bowie joined KWB in March 2019. Heather received her Bachelor of Commerce from the University of Alberta in 2003. She articled with Grant Thornton during which time she received her CA designation in 2006. Over the years, Heather received a variety of experiences including working as an online facilitator for the CA program, working in industry as well as a practice reviewer for CPA Alberta.
Heather works part-time, is married and has two girls. Away from work, Heather and her husband own an HVAC business in Sherwood Park allowing her to understand business from both the client and the accountant perspective. In her spare time Heather enjoys attending her girls sporting events and dance performances, keeping active and playing board games.