Update December 10, 2020: The Government of Canada, alongside its partners EDC and Canada’s have expanded the Canada Emergency Business Account (CEBA) loan program to provide additional financial support to those eligible Canadian small businesses and non-profits who continue to be impacted by the unprecedented economic challenge brought on by the COVID-19 pandemic.

Under this expansion, the CEBA program will now provide access to an additional $20K to eligible borrowers who already received a $40,000 loan and $60,000 for new applicants to CEBA.

If you are a business member and have an existing CEBA loan administered through our credit union, and the loan is in good standing, you may apply for the additional $20,000. For those who are eligible, $10,000 will be forgivable if repaid by December 31, 2022. For example, if you are a business who has a current loan of $40,000 and are approved for the additional funds under the new criteria of $20,000 your total loan is $60,000 and of that, $20,000 is forgivable if repaid before December 31, 2022.

For those business members who do not have an existing CEBA loan or pending application, and meet the criteria outlined by EDC, you may be eligible for a loan up to $60,000 with a total of $20,000 forgivable if repaid prior to December 31, 2022. New applicants must complete the EDC pre-screening tool here and follow the other application requirements outlined below.

The application deadline has been extended to March 31, 2021

To determine if you may meet the CEBA eligibility requirements, please use the EDC CEBA pre-screen tool.

If it is determined that you may be eligible, contact one of our Financial Services Officers using the contact information below to open a business chequing/operating account and continue the application for the CEBA loan here.

More information on the program as well as frequently asked questions are outlined below.

Donna Larder     (902)275-2093  dlarder@newrosscreditunion.ca
Sandra Brown    (902)689-2056  sbrown@newrosscreditunion.ca
Nancy Dempsey (902)689-2054  ndempsey@newrosscreditunion.ca
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The Government of Canada and Export Development Canda (EDC) have launched the Canada Emergency Business Account (CEBA) to support businesses and non-profits that have been adversely affected by COVID-19. Eligible businesses will receive a total of $60,000 loan for immediate financial support to cover short term operating expenses, payroll, and other non-deferrable expenses which are critical to sustain business continuity. 

We are accepting applications for the CEBA loan program on behalf of the Government of Canada and Export Development Canada (EDC) until March 31, 2021. To apply, please complete the following:

1. Complete a government pre-screening to see if you may be eligible for the CEBA Program. If you may be eligible, you will receive a 10-digit pre-screen number.

2. Open a business account. A business account is required to qualify for the CEBA program. Contact one of our Financial Services Officers to open your business banking account.  Please see contact information above.

3. Submit your application by clicking here.

Frequently Asked Questions:

What is the CEBA program?

This CEBA loan program provides interest-free loans of up to $60,000 to small businesses and not-for-profits that have been seriously impacted by the pandemic.

If the balance of the loan has been repaid on or before December 31, 2022, 33% of the loan ($20,000) will be forgiven.

As of October 26, 2020, eligibility for CEBA expanded by removing the previous March 1, 2020 condition for having an active business chequing/operating account. With this removal, eligible businesses can now apply after opening a business chequing/operating account with their primary financial institution. For more information about this new criteria see the section below on “About the CEBA expansion.”

As of December 4, 2020, approved CEBA applicants can now receive a $60,000 loan. CEBA applicants who have received the $40,000 CEBA loan may apply the CEBA expansion, which provides eligible businesses with an additional $20,000 of financing.

What are the eligibility requirements for the CEBA and how do I apply?

The CEBA application process follows one of two streams: (i) the Payroll Stream (Applicants with employment income paid in the 2019 calendar year between Cdn.$20,000 and Cdn.$1,500,000) or (ii) the Non-Deferrable Expense Stream (Applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year).

Every applicant must meet the following criteria:

• Has an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
• Has an active business chequing/operating account with the Lender at the time of applying for CEBA. Note: If Borrower currently does not have a business chequing/operating account the Borrower must create one at their primary financial institution before applying for CEBA.
• Has not previously used the Canada Emergency Business Account Program (the “Program”) and will not apply for support under the Program at any other financial institution.
• Intends to continue to operate its business or to resume operations.
• If you fall into the Payroll Stream and once you have completed the application with your financial institution, the Government of Canada will assess the application and inform your financial institution of the approval or decline of the loan. If approved, your financial institution will provide the funds into your business chequing / operating account.

If you fall into the Non-Deferrable Expenses Stream you must also meet the following criteria:
Have eligible non-deferrable expenses between Cdn. $40,000 and Cdn. $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.

Filed an income tax return with the CRA with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018.

CEBA applications under the 2020 Eligible Non-Deferrable Expenses Stream will follow a three-step process: 

• Step 1: Complete the online Pre-Screen Tool. The Pre-Screen Tool is not a CEBA application and is solely intended to provide a non-binding indication of eligibility to inform your decision of whether to apply for a loan. If you are declined at this step you can still apply for CEBA and therefore still need to complete the next two steps as identified.
• Step 2: Businesses will initiate applications directly through filling out the application. Once we receive the application, we will be in touch to activate Step 3 of the application process.
• Step 3: Once we’ve received your application, you will then be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.

The Government of Canada will assess application information submitted with the supporting documentation and information provided in Step 3. If successful, the Government of Canada will notify us and provide funding for your CEBA loan.

Questions about the Expansion:

Who can apply for the $20,000 expansion?

Applicants with a $40,000 CEBA loan may apply for the $20,000 expansion. To apply, click here.

I already repaid my original CEBA loan. May I apply for the $20,000 expansion?

Yes, you may apply for the $20,000 expansion. To apply, click here.

What are the repayment terms for the $40,000 and $60,000 loan and the $20,000 expansion?

The following terms apply to all CEBA loans (original loan and expansion loan):

Interest:

• 0% per annum interest until December 31, 2022
• 5% per annum interest starting on January 1, 2023; interest payment frequency to be determined by your financial institution

Repayments & Maturity:

• No principal repayment required before December 31, 2022
• If loan remains outstanding after December 31, 2022, only interest payments required until full principal is due on December 31, 2025

Debt Forgiveness:

• If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by December 31, 2022, the remaining principal amount will be forgiven, provided that no default under the Loan has occurred

Can I apply for an amount other than $20,000 for the expansion?

Applicants applying for the expansion can only apply for the full $20,000. If you’re a new applicant click here to fill out the EDC pre-screen tool to see if you may be eligible. For existing CEBA loan, click here to apply for the expanded program.

Can I still apply for a $40,000 loan instead of a $60,000 loan once the expansion is available at my financial institution?

No, under the expanded program you may no longer apply for $40,000.

How can I apply for the $20,000 expansion?

As long as your existing CEBA loan is with New Ross Credit Union and meets the eligibility criteria, you may apply here.

Do I need to submit a new application for the $20,000 expansion?

Yes, you will need to submit a new application and attestation to the financial institution that provided you with your original CEBA loan.

You will not need to resubmit your original application, or re-upload expense documents.

To apply, click here.

I applied for a CEBA loan before the expansion was announced. Can I cancel my existing $40,000 loan application and reapply for a $60,000 loan instead?

Please reach out to one of our Financial Services Officers directly for more information. Please see their contact information below.  Note that choosing to cancel your application will reset adjudication timelines, adding additional processing time. An additional attestation will need to be submitted to apply for a $60,000 loan.

With respect to your existing $40,000 loan application, once you have applied, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.

Upon approval of your original loan application, you may then apply for an expansion and can do so by clicking here.

How long does it take to receive a $40,000 or $60,000 CEBA loan?

Once you have applied, uploaded all necessary supporting documents (if applicable), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.

What are the terms of the forgiveness?

If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Example 1:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2022: $30,000
Available Forgiveness: $10,000

Example 2:
Maximum Amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $15,000
Available Forgiveness: $5,000

Example 3:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2022: $25,000
Available Forgiveness: $0

If you borrowed more than $40,000 and up to $60,000:
If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed and are described here.

Repaying 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.

Example 4:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2022: $40,000
Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)

Example 5:
Maximum Amount Borrowed: $50,000
Amount Repaid By December 31, 2022: $35,000
Available Forgiveness: $15,000 ($40,000 x 25% + $10,000 x 50%)

Example 6:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2022: $35,000
Available Forgiveness: $0

If you fully repaid your original $40,000 loan, claimed forgiveness, and thereafter received the $20,000 expansion:
Repaying the outstanding balance of the $20,000 expansion (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 50 percent (up to $10,000).

Example 7: Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $10,000
Available Forgiveness: $10,000

Example 8:
Maximum amount Borrowed: $20,000
Amount Repaid By December 31, 2022: $8,000
Available Forgiveness: $0

Will I automatically get approved for the $20,000 expansion if I have successfully received a CEBA loan, or is there a chance I will get declined?

Applicants who received a $40,000 loan must apply separately for the $20,000 CEBA expansion.

In instances where additional information is needed from you relating to your original loan application, or if post-funding validations identified a discrepancy between your original loan application and CRA records, your expansion application may be declined.

Depending on the reason for decline, you may or may not be able to remedy your application.

I have been declined for the $20,000 expansion, how should I proceed?

Depending on the reason for decline, you may or may not be able to remedy your application. You will be notified with instructions on the next steps if any action or input is required from you.

What is the application deadline for the $20,000 expansion?

The deadline to apply for the $20,000 expansion at your financial institution is March 31, 2021.

How long does it take to receive the $20,000 expansion?

Once you have applied if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.

For more information on the CEBA Program, visit the Government of Canada website.

If you have further questions, please connect with your Commercial Lending Representative directly at:
Donna Larder     (902)275-2093  dlarder@newrosscreditunion.ca
Sandra Brown    (902)689-2056  sbrown@newrosscreditunion.ca
Nancy Dempsey (902)689-2054  ndempsey@newrosscreditunion.ca

Note: Please be advised that by clicking on the link below you will be taken to an external site.

Online Application – Apply Now


Please note, due to the high volume of applications, it may take us a little longer to contact you once your form has been submitted.  Our committment is to get back to you within 1 business day.