Advocacy Win – BBOT Applauds Changes to Canada Emergency Business Account Loan Program
Following ongoing advocacy with the federal government, the Burnaby Board of Trade (BBOT) is pleased to see major changes announced for the Canada Emergency Business Account (CEBA) to allow for businesses with little to no traditional T4 payroll to utilize the program. The CEBA program provides interest-free loans to businesses negatively impacted by the COVID-19 pandemic and related restrictions, and the BBOT had been advocating directly with the federal government to open the program up to more businesses, sole proprietorships with no workers, businesses with contractor employees, or small businesses who pay their owners through dividends, all of who had been shut-out.
The changes announced to the CEBA will allow the program to be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll. CEBA is open to businesses between $20,000 and $1.5 million in payroll in 2019, and with the new changes, applicants with payroll lower than $20,000 can apply if they have:
- a business operating account at a participating financial institution
- a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
- eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.
More details, including the launch date for applications under the new criteria, will follow in the days to come. The Burnaby Board of Trade will continue to advocate for the interests of our business community, including on this program which still needs to address the eligibility of new businesses or the needs of those over the $1.5 million payroll ceiling.