Canada Emergency Business Account (CEBA)

Prospera Credit Union is committed to supporting our business members through this difficult time. We are pleased to announce that we are now accepting applications for the federal government’s Canada Emergency Business Account (CEBA).

CEBA is a government-guaranteed loan of up to $60,000, interest-free until December 31, 2022, for qualifying businesses and non-profits that have been affected by COVID-19 to help them cover non-deferrable operating costs.

Program criteria:

• The loan will remain interest-free until December 31, 2022.
• Loan forgiveness will be as follows:
• If you borrowed $40,000 or less, if at least 75% of the loan is repaid by December 31, 2022, the remaining 25 per cent (up to $10,000) may be forgiven.
• If you borrowed more than $40,000 and up to $60,000 and repay the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
• 25 percent on the first $40,000; plus
• 50 percent on amounts above $40,000 and up to $60,000.For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid. For more examples, please refer to the FAQs under “What are the terms of forgiveness?”.
• If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5 per cent interest.

Program eligibility:

• As of October 26, 2020, businesses eligible for CEBA now include:
• Owner-operated small businesses that do not have a payroll;
• Sole proprietors receiving business income directly;
• Family-owned corporations remunerating in the form of dividends rather than payroll.
• Must have an existing business account in good standing at Prospera Credit Union at time of application.
• Must be a Canadian business in operation as of March 1, 2020.
• is not a union, charitable, religious or fraternal organization or entity owned by such an organization or if it is, it is a registered organization that has filed its T2 return or T3010 return and that generates a portion of its revenue from the sales of goods or services;
• is not an entity owned by any Federal Member of Parliament or Senator; and
• it does not promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age or mental or physical disability, contrary to applicable laws.
• Must have a federal tax registration and a CRA Business Number (BN).
• Must have filed tax return(s) with CRA for 2019 and/or 2018
• The eligibility criteria has expanded and there will be two CEBA qualification routes:
• Via Payroll:
  Total employment income paid in the 2019 calendar year must be between Cdn. $20,000 and Cdn.$1,500,000, as being the sum of all employment income paid reported in box 14 of its 2019 T4SUM statement and all employment income reported in box 71 of T4 statements issued to all of its employees for 2019.
• For additional clarity, where a Qualifying Borrower has more than one CRA Payroll Program Account, and therefore more than one T4SUM statement, it is the sum of the employment income paid reported in box 14 of all of the Qualifying Borrower’s 2019 T4SUM statements that is compared against the range of between Cdn.$20,000 and Cdn.$1,500,000.
• Via Non-Deferrable Expenses:
  If your 2019 total employment income paid is less than $20,000, you must have eligible non-deferrable expenses for 2020 between $40,000 and $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities and insurance. You will need to provide supporting documentation of bills / invoices / agreements that prove greater than $40,000 in 2020 Eligible Non-Deferrable Expenses by uploading to the EDC portal during the application.
• To qualify and apply for CEBA you will need one of two Business Numbers (BN):
• Via Payroll: Must have a 15-digit Canada Revenue Agency Business Number (BN), as reported at the top of your 2019 T4 summary of Remuneration Paid (T4SUM).
• Via Non-Deferrable Expenses: Must have a 9-digit Canada Revenue Agency Business Number (BN) normally used to identify your business.
• You must not have applied for CEBA at another financial institution. Applying for this benefit at more than one financial institution may result in prosecution by the federal government.
• Per requirements of the program, as set out by the federal government, funds from the loan must be used to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, property tax and regularly scheduled debt service.
• Any person applying for the CEBA loan on behalf of an organization must have the authority to attest on behalf of that organization and bind the organization to the terms of the CEBA loan agreement.

How to apply (Desktop Only)

We are accepting applications through Business Online Banking. Click here to apply for a new CEBA loan. If you are looking to apply for the $20,000 expansion, click here. A Prospera business account is required to submit your application.

1. Login to Business Online Banking
2. Click on account services (left side navigation)
3. Click on Apply for the Canada Emergency Business Account
4. Fill out the form and Submit

What to expect after submitting application

1. An employee will contact you regarding your application once submitted
2. Qualifying applications will be required to electronically sign loan documentation and attestation
3. The entire process from application to processing to funding can take between 10 to 15 business days

Frequently Asked Questions

Contact Us

Please contact us directly for any questions or concerns:

Contact us online

Call 604-517-0100 or toll-free at 1-877-506-0100.

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