Prime Minister Justin Trudeau speaks during his daily news conference on the COVID-19 pandemic outside his residence at Rideau Cottage in Ottawa, on Tuesday, May 19, 2020. THE CANADIAN PRESS/Justin Tang

Feds expand criteria for emergency loans to include family businesses, contractors

Owner-operated businesses are now eligible as well

Ottawa is expanding the small business loan program for COVID-affected companies, Prime Minister Justin Trudeau announced Tuesday (May 19).

The Canada Emergency Business Account will now accept applications from sole proprietorships and businesses that pay family members through dividends or employ contractors.

Trudeau said the expanded criteria would apply to everyone from hair salons that rent out chairs to stylists to gym owners who employ contracted changes.

The CEBA program give qualifying businesses that have been affected by COVID-19 loans of up to $40,000. The loans are interest-free and can be partially forgiven.

To qualify under the new criteria, applicants with payroll lower than $20,000 need:

  • a business operating account at a participating financial institution
  • a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return
  • eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

Trudeau said his government is looking at expanding the program to business owners who use their personal bank accounts or have yet to file a tax return because they are a new business.

In a statement, Courtenay-Alberni MP Gord Johns said while this announcement was welcome, it could be too little too late for many small businesses. The NDP MP also called for Trudeau to release more details on the Canada Emergency Commercial Rent Assistance Program, which was announced last month. The federal government said the program could be operational by mid-May.

READ MORE: Retail tenants hopeful over federal relief plan, but landlords reluctant to join

READ MORE: Businesses hard-hit by COVID-19 to get 75% in rent cost relief

READ MORE: Trudeau unveils rental assistance for small businesses, loosens loan qualifications


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusJustin Trudeau

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Campbell River Board of Education approves $72-million budget

Trustees pleased budget aligns with board’s new strategic plan

NIC leads province in transition to online biology labs

North Island College (NIC) biology faculty are among the first in the… Continue reading

Like father, like son: second generation hockey player joins Campbell River Storm

Wyatt Murray’s father, Ben Murray, played for the team in late 90s

BC Transit rate change, embarking rules shift into action June 1

Campbell River transit system getting a new day pass

Bride thankful ailing stepdad was able to walk her down the aisle

Ceremony held amidst pandemic in order to fulfill bride’s wish to have stepdad give her away

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Mirror business directory and map

If you’d like to be added to the list, shoot us an email

George Floyd asphyxiated by sustained pressure: family autopsy

Death sparked a wave of protests across the U.S. and abroad

COVID-19: B.C. commercial landlords can’t evict if they decline rent assistance

Emergency order ‘incentive’ for federal program, Carole James says

Duncan’s Queen Margaret’s School pioneers thermal imaging in school reopening

Private school is first in B.C. to use new tech post-COVID-19

Investigators probe death of CN employee at Surrey rail yard

Transportation Safety Board is investigating an ‘occurrence that took place during switching operations’

Trans Mountain starts B.C. leg of pipeline twinning project

Mostly finished in Alberta, Burnaby terminal expanding

NDP getting COVID-19 wage subsidy ‘indirectly,’ B.C. Liberal leader says

Andrew Wilkinson says he’s heard no concerns from public

Most Read