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CPB Canada advocacy helps secure an extension to the Canada Emergency Business Account (CEBA)
CPB Canada has successfully advocated for an extension to the Canada Emergency Business Account (CEBA) to increase access for small businesses. Alongside other business groups, we have made leading figures aware of the need to continue providing flexible business supports to close the gap for businesses struggling with revenue loss. On October 9, the government announced the following measures:
- An expanded Canada Emergency Business Account (CEBA), which would enable businesses, and not-for-profits eligible for CEBA loans—and that continue to be seriously impacted by the pandemic—to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000. Half of this additional financing would be forgivable if repaid by December 31, 2022. Additionally, the application deadline for CEBA is being extended to December 31, 2020. Further details, including the launch date and application process will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.
- An extended deadline for CEBA to December 31, 2020. Additional details, including the launch date and application words will be announced in the coming days. Businesses applying for the loans will be required to prove they have faced income losses specifically caused by COVID-19.
CPB Canada remains focused on urging the Government of Canada to make further changes to CEBA to allow for greater access to for bookkeepers. Included among the further expansions to CEBA highlighted in our pre-budget submission is allowing sole proprietors operating a business through a personal banking account to access the program.
New Canada Emergency Rent Subsidy
CPB Canada has raised concerns with officials in recent months that the Canada Emergency Commercial Rent Assistance program was limiting for many small businesses due to the fact landlords were responsible for applications to support their tenants. Last week’s announcement also included news of a new Canada Emergency Rent Subsidy, which is set to provide easily accessible rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19. This new rent subsidy will:
- Be provided directly to tenants, while also providing support to property owners.
- Support businesses and not-for-profits to have lost revenue due to the pandemic by subsidizing a percentage of their expenses on a sliding scale, up to maximum of 65 per cent of eligible expenses until December 19, 2020.
- Organizations will also be able to make claims retroactively for the period between September 27 and October 24, 2020.
- A top-up Canada Emergency Rent Subsidy of 25 per cent will also be available on top of the 65 per cent subsidy to organizations temporarily shut down by a mandatory public health order.