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Information about the Canada Emergency Business Account

Learn more about the government’s Canada Emergency Business Account – an interest-free loan of up to $40,000 to qualifying businesses

April 24, 2020   4 min read

If your small or not-for-profit business is facing financial challenges due to COVID 19, there’s help available. Recently, the government announced the Canada Emergency Business Account (CEBA) - support for businesses to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID 19 virus.

The federal government has launched the CEBA to help eligible businesses cover operating costs that can’t be deferred, such as payroll, rent, utilities, insurance, and property tax. The loan is up to $40,000, and our eligible business members can easily apply through Coastal Community’s website. 


Here’s the main details:

  • The program offers a government guaranteed loan up to $40,000,  interest-free until December 31, 2022
  • loan is to help you pay for operating costs that you’re not able to defer as a result of the impact of COVID-19
  • You are not required to make principal payments until December 31, 2022
  • Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Keep in mind: If you have not repaid the loan by December 31, 2022, the remaining balance will be converted to a 3-year term loan with an annual interest rate of 5% per annum, effective January 1, 2023. You must repay the full balance by no later than December 31, 2025.

For more details, visit

Who is eligible to apply?

If you are one of our business or community partner members, here are some of the requirements to determine if you’re eligible: 

  • You are applying through your primary financial institution – please note that applying for this benefit at more than one financial institution may result in prosecution by the federal government
  • Your organization is a Canadian operating business and has been in operation as since March 1, 2020
  • You have an active operating account with us in good standing, opened on or before March 1, 2020
  • Your business paid between $25,000 to $1.5 million in total payroll according to your organization's 2019 T4 Summary of Remuneration Paid (T4SUM)
  • You agree to use the funds from the loan for non-deferrable operating expenses, as outlined in the program
  • You intend to continue to operate your business or resume operations
  • You have a federal tax registration
  • You have not previously used the Program for this business and will not apply for support under the Program at any other financial institution
  • You agree to participate in post-funding surveys conducted by the Government of Canada or any of its agent

Keep in mind: You’ll need your 15-digit CRA Business number from the top of the 2019 T4 SUM and what you reported for employment income in Box 14. If you can’t find your T4SUM, please contact the Canada Revenue Agency or your payroll provider.

Can I enroll multiple businesses?

Yes, but each business has to qualify individually. You’ll need to submit an application for each separate business. 

How do I apply?

Fill out the application found on Coastal Community’s COVID-19 information page found on their website at Alternatively, click here to go directly to the application

Once you’ve submitted your enrollment request, it will be reviewed by Coastal Community and the Government of Canada. 

What happens if I default on a CEBA loan? 

If a default occurs, at its option, the lender may demand payment of all unpaid amounts due, including without limitation all principal and interest. Events of default include: 

  • default in paying any amount due hereunder
  • default in paying any other loan outstanding
  • you fail to comply with any of the provisions of this Agreement
  • you make any false or misleading representation, including without limitation, in your application for the Loan or the information you have certified
  • you commit an act of bankruptcy or become insolvent, or
  • a receiver is appointed for your business or any part of your property

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