Second CEBA loan is available

CEBA / Global Korean Post

CEBA is extended with extra $20,000

 

Dec 4, 2020

Global Korean Post

 

Small businesses continue to face challenges and uncertainty during the COVID-19 pandemic and the government is providing support to ensure they can stay in business.

Since the spring, the Canada Emergency Business Account has helped almost 800,000 small businesses and not-for-profits in Canada.

 

Today, the Department of Finance Canada announced the expansion of the Canadian Emergency Business Account (CEBA).

 

Starting on Friday, December 4, 2020, eligible businesses facing financial hardship as a result of the COVID-19 pandemic are able to access a second CEBA loan of up to $20,000 – on top of the initial $40,000 that was available to small businesses.

 

Half of this additional financing, up to $10,000, will be forgivable if the loan is repaid by December 31, 2022.

 

This means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid on time.

 

As announced in the Fall Economic Statement, the application deadline for CEBA has also been extended to March 31, 2021.

 

The additional $20,000 CEBA loan may not be available at all participating financial institutions on December 4, but is expected to be available soon.

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