Prime Minister Justin Trudeau announced on Tuesday an expansion to the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses.
The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll, said the government.
To qualify under the expanded eligibility criteria, the government said applicants with payroll lower than $20,000 would 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.
“Canadians are counting on us to protect their jobs and help them pay their bills during this difficult time. By expanding the CEBA, we will be giving more businesses access to the support they need, so they can help protect workers and the jobs they rely on. Today we are helping to keep more businesses open and more Canadians working, so we are better prepared for the recovery to come,” said Trudeau.
The government said expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions. More details, including the launch date for applications under the new criteria, will follow in the days to come. To date, over 600,000 small businesses have accessed the CEBA, and the government will work on potential solutions to help business owners and entrepreneurs who operate through their personal bank account, as opposed to a business account, or have yet to file a tax return, such as newly created businesses, it added.
“Our government has been taking action since the start of this crisis to support the small businesses that define our Main Streets and provide jobs that Canadians rely on. We have been listening to you throughout this, and will continue to, to make sure we’re delivering the support Canadian businesses need to get through this tough time and be well positioned for success once the recovery begins,” said Minister of Finance Bill Morneau.