Good news for those health care clients who weren’t previously eligible for the Canadian Emergency Business Account (CEBA).  Eligibility criteria have been expanded and you may now qualify for this interest-free, partially forgivable loan.

And more good news for those who have already received the $40,000 CEBA loan: On October 9, 2020, the government has signalled its intention to make an additional $20,000 available, subject to certain eligibility criteria.

Whether you’ve received CEBA already or are looking to apply for the first time, we’re here to help determine your eligibility. Below, we’ve summarized the key, need-to-know points.

Quick Refresher: What is CEBA?

Initially launched in April, CEBAprovided interest-free, partially forgivable loans of $40,000 to small businesses affected by COVID-19.

There were two streams to qualify; a payroll stream (for businesses having payroll in 2019 of between $20,000 and $1,500,000) and a non-deferrable expense stream (added subsequently for those businesses who did not have payroll). More about the two streams here.

So What Are The Latest Changes?

  1. CEBA is now available to unincorporated businesses operating with personal bank accounts.

Originally CEBA was only available to unincorporated businesses that had an established business bank account.  As of October 26, 2020, this program has been made available to entities that have been operating through a personal bank account.

To be eligible, businesses must have been operating since March 1, 2020, must open a business account at a Canadian financial institution that participates in the CEBA program, and meet the other existing CEBA eligibility criteria.

  1. Access to an additional $20,000 interest-free loan announced for certain entities.

On October 9, 2020, the government announced its intention to expand the Canada Emergency Business Account (CEBA), to enable businesses, eligible for CEBA loans—and that continues to be seriously impacted by the pandemic—to access a further $20,000 interest-free loan.  These funds would be in addition to the original interest-free, partially forgivable loan of $40,000. Half of this additional loan would be forgiven—up to $10,000—if repaid by December 31, 2022.  An attestation of the impact of COVID-19 on the business will be required to access this additional funding according to government releases.  

Further details, including the launch date and application process will be announced in the coming days according to the Department of Finance Canada website.

  1. Extension of CEBA deadline.

Additionally, the application deadline for CEBA has been extended from October 31, 2020 to December 31, 2020.

Refresher on How to Qualify for CEBA

To qualify for CEBA, all applicants must have:

  • An active Canada Revenue Agency (CRA) business number with an effective date of registration on or prior to March 1, 2020;

and either:

  • met the 2019 payroll eligibility criteria, or,
  • provided documentation in support of at least $40,000 of 2020 eligible non-deferrable expenses, and have filed a 2018 or 2019 income tax return with Canada Revenue Agency.

To assess your eligibility for CEBA, you can use the pre-screening tool on the CEBA website.

Wondering which application stream applies to you? You can learn the difference between the two streams here.

What’s Next?

  • For a more in-depth assessment of whether or not you are eligible for CEBA, please feel free to reach out to Jonathan Tucker at (905) 601-5659 x101 or by email at
  • Are you a Tucker Professional Corporation client and trying to understand if you qualify for CEBA? Feel free to reach out.
  • Are you a healthcare-focused financial professional? Forward this reminder to colleagues, clients and any others who may be planning to apply.
Jonathan Tucker

Jonathan Tucker