Interest-Free COVID-19 Loans for Small Businesses – Canada Emergency Business Account

COVID-19 Updates & Resources


New Expansion Noted Below!   Applications are now open through your financial institution!

The “Canada Emergency Business Account” provides interest-free loans of up to $40,000 to qualifying small businesses, with up to $10,000 eligible for complete forgiveness. Businesses should contact their financial institution to apply for these loans as applications have been extended to October 31, 2020.


  • Organizations much be a Canadian business in operation as of March 1, 2020.
  • Organizations must have a total payroll of $20,000 to $1.5 million in 2019 as indicated on your 2019 T4 Summary of Remuneration Paid
  • For organizations with less than $20,000 in total employment income paid in 2019, they can still apply, starting June 19, if they have:
    • A business operating account at a participating financial institution;
    • A Canada Revenue Agency business number;
    • A 2018 or 2019 tax return; and
    • Eligible non-deferrable expenses of between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.
  • You must apply only once and at your primary financial institution
  • You must agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, property tax and regularly scheduled debt service
  • You intend to continue to operate your business or to resume operations
  • The program includes unions, charitable, religious or fraternal organizations or clients owned by such an organization if it is a T2 or T3010 corporation that generates a portion of its revenue from the sales of goods or services

Loan Details:

  • Loans/lines of credit will be interest free until December 31, 2022
  • No repayments are required until December 31, 2022, but can be made at any time in any amount prior
  • If businesses can repay the balance of the loan on or before December 31, 2022, the federal government will forgive 25% of it (up to $10,000).
  • If the loan is needed after December 31, 2022, it converts to a traditional loan with interest and repayment terms as per your financial institution
For more information, visit the CEBA landing page here