CRA COVID-19 Update

With the most recent updates from the Canadian Government. We have obtained additional clarity on the CEBA and CERB programs. Please see below.

As these programs continue to evolve, we encourage you to visit the relevant government websites for the latest federal and provincial updates.

Canada Emergency Business Account

Who qualifies?

The government has addressed concerns from many industry associations by lowering the payroll threshold from $50,000 to $20,000. If your total payroll is between $20,000 and $1.5 million annually, you may qualify for this loan.

The following are the key features of the Canada Emergency Business Account:

  • $40,000 loan
  • Interest-free until December 31, 2022
  • No minimum monthly principal payments until December 31, 2022
  • Principal repayments can be made at any time
  • $10,000 is forgiven if the outstanding balance is fully paid on or before December 31, 2022.
  • We’re reaching out to you with the details because you can only apply for the $40,000 CEBA loan from your primary financial institution.

Key eligibility requirements:

  • Your business was in operation as of March 1, 2020
  • You have an active business account with your primary financial institution that was opened on or before March 1, 2020

How does it work?

Backed by the Government of Canada and provided by participating financial institutions, the program provides interest-free loans of up to $40,000. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000)

Learn more by visiting the CRA website by clicking here

Support for business on the CRA website

Canada Emergency Response Benefit

Who qualifies?

The CERB is available to all Canadian workers (contract workers, wage earners, self-employed) who had a minimum of $5,000 total income (either employment income or self-employment income) in 2019, or in the 12 months prior to the application, and are expected to be without income for at least 14 days in the first four-week period.

In addition, you must demonstrate that you have either:

  • lost your job due to COVID-19
  • are sick, quarantined or taking care of someone with COVID-19
  • are working parents who must stay home without pay to care for children who are at home due to school and daycare closures
  • are still employed but not earning more than $1000 per month due to your work situation being disrupted by COVID-19

Please note: Sole proprietors and self-employed individuals who would not typically be eligible for EI may also qualify.

How does it work?

Through this program, you could be eligible to earn a taxable benefit of $2000 per month for up to four months

Learn more by visiting the CRA website by clicking here