Canada Emergency Business Account (CEBA) Application Form

We are pleased to offer our business members access to more Government funding: Updated Dec 9

Kawartha Credit Union is pleased to offer our business members access to more Government of Canada funding through the expanded Canada Emergency Business Account (CEBA).

The CEBA Expansion Program (CEBA 5.0) will now provide access to an additional $20,000 to eligible borrowers who already received a loan of $40,000.

Up to $60,000 is available for new applicants to CEBA. Members who do not wish to take advantage of the CEBA Expansion Program will continue to have 25% forgivable subject to payment back of the remaining 75% by December 31, 2022.

March 31, 2021 is the deadline to apply for CEBA applications.

For further details, call or visit your local Kawartha branch, or call our Contact Centre at 1-855-670-0510. If you have questions after checking your application status online, contact the CEBA Call Centre at 1-888-324-4201 and an agent will return your call Monday - Friday from 10:00 am to 9:00 pm EST.

If you are applying for CEBA for the first time, click here to access the application form

If you are applying for the CEBA Expansion Program, click here to access the application form

CEBA EXPANSION PROGRAM: FREQUENTLY ASKED QUESTIONS

Question Answer
Who can apply for the $20,000 expansion? Applicants with a $40,000 CEBA loan may apply for the $20,000 expansion.
I already repaid my original CEBA loan. May I apply for the $20,000 expansion? Yes, you may apply for the $20,000 expansion at the financial institution that provided you with your original CEBA loan. Members who are currently taking advantage of the CEBA program through Kawartha have to apply to Kawartha for the additional $20,000.
What are the repayment terms for the $40,000 and $60,000 loan and the $20,000 expansion? The following terms apply to all CEBA loans (original loan and expansion loan):

Interest:

  • 0% per annum interest until December 31, 2022
  • 5% per annum interest starting on January 1, 2023; interest payment frequency to be determined by Kawartha.

Repayments & Maturity:

  • No principal repayment required before December 31, 2022
  • If loan remains outstanding after December 31, 2022, only interest payments required until full principal is due on December 31, 2025

Debt Forgiveness:

  • If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by December 31, 2022, the remaining principal amount will be forgiven, provided that no default under the Loan has occurred.
Can I apply for an amount other than $20,000 for the expansion? Applicants applying for the expansion can only apply for the full $20,000.
Can I still apply for a $40,000 loan instead of a $60,000 loan once the expansion is available at my financial institution? Once Kawartha begins to offer the $60,000 loan you may no longer apply for $40,000.
How can I apply for the $20,000 expansion? Please contact Kawartha Credit Union who provided you with your original CEBA loan to apply for the $20,000 expansion.
If my financial institution is not yet offering the $20,000 expansion, can I apply for the it elsewhere? No, you must apply for the $20,000 expansion at the financial institution that provided you with your original CEBA loan (Kawartha).
Do I need to submit a new application for the $20,000 expansion? Yes, you will need to submit a new application and attestation to the financial institution that provided you with your original CEBA loan.

You will not need to resubmit your original application, or re-upload expense documents.
I applied for a CEBA loan before the expansion was announced. Can I cancel my existing $40,000 loan application and reapply for a $60,000 loan instead? Please consult with Kawartha as cancellations may or may not be offered.

Note that choosing to cancel your application will reset adjudication timelines, adding additional processing time. An additional attestation will need to be submitted to apply for a $60,000 loan.

With respect to your existing $40,000 loan application, once you have applied at Kawartha, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days. Upon approval of your original loan application, you may then apply for an expansion with your financial institution.
How long does it take to receive a $40,000 or $60,000 CEBA loan? Once you have applied at Kawartha, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.
What are the terms of the forgiveness? If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Example 1:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2022: $30,000
Available Forgiveness: $10,000

Example 2:
Maximum Amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $15,000
Available Forgiveness: $5,000

Example 3:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2022: $25,000
Available Forgiveness: $0

If you borrowed $60,000:
If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed and are described here.

Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
  • 25 percent on the first $40,000; plus
  • 50 percent on the remaining $20,000.

For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid.

Note: some financial institutions may record your $40,000 loan and $20,000 expansion as two separate loans. For the purposes of loan forgiveness, borrowings and repayments on both loans will be aggregated.

Example 4:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2022: $40,000
Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)

Example 5:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2022: $35,000
Available Forgiveness: $0

If you fully repaid your original $40,000 loan, claimed forgiveness, and thereafter received the $20,000 expansion:
Repaying the outstanding balance of the $20,000 expansion (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 50 percent or $10,000.

Example 6:
Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $10,000
Available Forgiveness: $10,000

Example 7:
Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $8,000
Available Forgiveness: $0
Will I automatically get approved for the $20,000 expansion if I have successfully received a CEBA loan, or is there a chance I will get declined? Applicants who received a $40,000 loan must apply separately for the $20,000 CEBA expansion.

In instances where additional information is needed from you or Kawartha relating to your original loan application, or if post-funding validations identified a discrepancy between your original loan application and CRA records, your expansion application may be declined.

Depending on the reason for decline, you may or may not be able to remedy your application.
I have been declined for the $20,000 expansion, how should I proceed? Depending on the reason for decline, you may or may not be able to remedy your application. Kawartha will be notified and will instruct you on the next steps if any action or input is required from you.
What is the application deadline for the $20,000 expansion? The deadline to apply for the $20,000 expansion at Kawartha is March 31, 2021.
How long does it take to receive the $20,000 expansion? Once you have applied at Kawartha and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.


CEBA 4.0 – Updated October 28

The Government of Canada is providing continued support to small business owners and entrepreneurs to help them adapt and position their businesses for recovery. CEBA is part of their economic response plan to help businesses keep their doors open, keep their employees on payroll, protect the jobs that Canadians depend on, and recover quickly when the time comes.

Kawartha is pleased to make CEBA 4.0 available to our Commercial members. This form will allow businesses who are operating from a personal account to access the program.

CEBA Eligibility Criteria

The Federal Government recently expanded the CEBA eligibility criteria. Kawartha’s business members may be eligible if they have:

Ceba 1.0

  • a payroll over $20,000
  • a business operating account at Kawartha Credit Union; 
  • a Canada Revenue Agency business number;
Ceba 2.0

  • a payroll less than $20,000
  • a business operating account at Kawartha Credit Union; 
  • a Canada Revenue Agency business number;
  • filed a 2018 or 2019 tax return; and 
  • eligible non-deferrable expenses (such as rent, property taxes, utilities, and insurance) between $40,000 and $1.5 million.
  • been operating as a business as of March 1, 2020, must successfully open a business account at Kawartha, and meet the other existing CEBA eligibility criteria.
  • An active Canada Revenue Agency (CRA) business number with an effective date of registration on or prior to March 1, 2020; 
Ceba 4.0

  • if you operate your business through a personal account, you must have fully opened a business account (with all required documentation) to apply for the CEBA funding.
and either:

  • meet the payroll eligibility criteria; or
  • demonstrate a minimum of $40,000 in eligible non-deferrable expenses, and have filed a 2018 or 2019 tax return
  • To assess their eligibility for CEBA, applicants can use the pre-screening tool on the CEBA website. To apply for CEBA, members should contact their Kawartha and provide the appropriate information and documentation. Applicants may contact the CEBA Call Centre at 1-888-324-4201 to receive a status update on a completed application between Monday to Friday from 8 a.m. to 9 p.m. EST
Visit our updated CEBA page for information on small business opportunities.

The deadline to apply for CEBA 4.0 is December 31, 2020.

Associated links


APPLYING FOR CEBA


Our application process is simple and easy. It includes an attestation questionnaire which requires you to confirm that:

  1. You are not a government organization or body, or an entity wholly owned by a government organization or body;
  2.  You are not a non-profit organization, registered charity, union, or a fraternal benefit society or order, or an entity owned by such an organization, unless the entity is actively carrying on a business in Canada (including a related business in the case of a registered charity) that earns revenue from the regular supply of property/goods or services;
  3. You are not an entity owned by any Federal Member of Parliament or Senator;
  4. Your business does not promote violence, incite hatred or discriminate based on sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age, or mental or physical disability, contrary to applicable laws.
Once Kawartha Credit Union receives your application, you will be contacted by a Commercial Services Representative within two business days. When your application has been verified, it will take approximately 5 business days to receive funds.

If you have any questions, please email your Kawartha Credit Union Commercial Account Manager at ceba@kawarthacu.com.

Coming soon


On October 9, 2020 the government announced that it is working with Export Development Canada (EDC) and financial institutions to expand the CEBA program by providing an additional interest-free CEBA loan amount of $20,000, of which up to half will be forgivable if the balance of the loan is paid by December 31, 2022.

The government is currently developing a website that will enable you to pre-screen your eligibility for an additional $20,000 before applying. Please monitor our website for updates on the availability of this feature.

CEBA provides zero-interest loans up to $40,000 to small business and non-profit organizations that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes and wages. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Since its launch, the government has made modifications to CEBA to help even more small businesses, including:

  • increasing the payroll eligibility range from between $50,000 and $1.0 million to between $20,000 and $1.5 million;
  • making CEBA available to owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll. 

CEBA LOAN DETAILS:


  • a loan of up to $40,000 interest-free government guaranteed to help you pay for operating costs that you are not able to defer as a result of COVID-19. The loan will be interest free until December 31, 2022.
  • up to $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.
  • if the loan is not repaid by December 31, 2022, it will be converted into a 3-year term loan, bearing an interest rate of 5% per annum.
  • outstanding principal of the loan must be fully repaid by December 31, 2025.
  • Kawartha Credit Union will not process any repayment of CEBA loans until January 1, 2021.

Frequently Asked Questions About CEBA


Q: Can I enroll at more than one financial institution? I am a sole proprietor and I only have a Kawartha Credit Union personal chequing account.

A: No. Businesses must enroll for the Canada Emergency Business Account at their primary financial institution where they have an existing business banking account, and they cannot apply at more than one financial institution. The Canada Emergency Business Account is only available to businesses registered on or before March 1, 2020. Further information is available at the Government of Canada’s COVID-19 Economic Response Plan site: (https://www.canada.ca/en/department-finance/economic-response-plan.html)

Q: If I have accounts at multiple financial institutions, how do I determine where to apply?

A: Your primary financial institution is the one where your business does the majority of its day-to-day banking, including employee payroll, supplier payments, and collection of receivables. If you do not use your Kawartha Credit Union account for these functions, you need to apply at the financial institution where this business account is held.

Q: My business requires the consent of more than one director or officer to bind my organization. Can I still apply?

A: Yes. Please note the program does allow your business to complete the agreement with the consent and attestation of only one signing officer who has the authority to bind the organization.

Q: If I am currently benefiting from other government COVID-relief offerings can I apply for the CEBA?

A: Yes, businesses may apply for other programs providing they meet qualifications.

Q: What if I have multiple businesses? Can I enroll under each business for CEBA?

A: Each business entity may enroll for CEBA, providing that they individually meet the eligibility criteria. You will need to complete an application for each business.

Q: Who do I contact if I do not qualify for the loan?

A: Export Development Canada is the administrator of the government's www.CEBA-CUEC.ca (http://www.CEBA-CUEC.ca) website.

For more information please email: ceba@kawarthacu.com.