Canada Emergency Business Account
On April 16th, the Prime Minister, Justin Trudeau, announced an expansion to the Canada Emergency Bank Account (CEBA).
Now businesses that had payroll in 2019, as evidenced by their T4 Summary remittance, of between $20,000 and $1,500,000, are eligible for the $40,000 loan program at 0% interest. This new range replaces the prior range of $50,000 to $1,000,000.
Since the launch of CEBA, more than 195,000 loans have been approved by financial institutions, which represents approximately $7.5 billion in credit made available to small and medium sized businesses.
Canada Emergency Commercial Rent Assistance
Additionally, the PM announced that the government intends to introduce the Canada Emergency Commercial Rent Assistance program (CECRA) for small business.
This program will seek to provide loans, including forgivable loans, to commercial property owners who in turn will lower or forgo rent of small businesses for the months of April (retroactive), May and June. More details on this program will follow in the upcoming days or weeks.
If you are a commercial tenant, we would suggest that you ask your landlord whether they will be applying for this program, so that you can benefit from its intent.
For a free full summary of the government's COVID response, please click on the link below.
This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA tax advisor.
GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of 20, provides Audits, Reviews, and Notice to Reader financial statements, as well as corporate tax returns. We also provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.
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