Canada Emergency Business Account loans: financial relief for small businesses

Making decisions easier and lives better is at the heart of everything we do. If your small business or not-for-profit has lost revenue due to COVID-19, you can apply for an interest-free loan of up to $40,000 with the Canada Emergency Business Account (CEBA).

The loan is designed to help businesses cover their operating costs during these challenging times.

How the loans will work

Businesses and not-for-profits can apply for interest-free loans up to $40,000 from their primary bank, and will have two different repayment options:

  1. If a business repays 75% of their loan by December 31, 2022, the remaining 25% of the loan (up to $10,000) will be forgiven.
  2. If a business can’t repay 75% of the loan by December 31, 2022, the remaining balance will be converted to a 3-year loan with an annual interest rate of 5%.

The loan can only be used to pay non-deferable operating expenses, including payroll, rent, utilities, insurance, property tax, and regularly scheduled debt payments, and can’t be used for expenses such as prepayment/refinancing of existing debt, dividend payments, distributions, or increases in management compensation.

The CEBA loans will be issued and administered by Manulife Bank, at the request of and on behalf of Export Development Canada (EDC). 

Eligibility requirements

To apply for a CEBA loan with us, Manulife Bank must be the primary bank for your business activities. Typically, this means the majority of your business financial transactions go through your Manulife Bank account, including payroll, bills, etc. If your primary operating account is with another bank, you should apply for a CEBA loan through that bank.

Your business or not-for-profit must also satisfy these requirements:

  • Must be a Canadian business in operation as of March 1, 2020.
  • Must have a federal tax registration.
  • Must have paid between CAD $20,000 and $1,500,000 in total employment income during 2019, OR
  • If the applicant paid less than CAD $20,000 in total employment income in the 2019 calendar year, they must:
    • Have a Canada Revenue Agency business number and filed a 2018 or 2019 tax return, and
    • Have eligible non-deferrable expenses between CAD $40,000 and $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.
  • Must have an active business chequing/operating account with its primary bank, opened by March 1, 2020, and wasn’t in arrears on existing borrowing facilities with their primary bank by 90 days or more as at March 1, 2020.
    • Note: your primary business bank account must be a designated bank account, not a personal bank account.
  • The business hasn’t previously used the program and won’t apply for support under the program at any other financial institution.
  • The business intends to continue to operate its business or to resume operations.
  • The business agrees to participate in post-funding surveys conducted by the Government of Canada or its agents.

If you have multiple businesses that don't individually meet the eligibility requirements individually but do meet the requirements when combined, you can apply for a CEBA loan. For example, if you own two businesses, and business A paid CAD $10,000 in total employment income in 2019, and Business B also paid CAD $10,000 in total employment income in 2019, you can apply for a CEBA loan with either business. However, you can only apply for one CEBA loan, and you should apply at the bank where you hold the primary bank account for the business you're applying with.

Qualification requirements and program details may change. While we will try to keep the latest information on this page, visit the Government of Canada's CEBA site for the most current information.

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