Loans of up to $40000 are being provided to small businesses in Canada.
Are You Eligible?
There are some criteria you must meet to be eligible for the Canada Emergency Small Business Loan. You must have had a payroll of $50,000 to $1,000,000 in 2019.
Now the loan itself does have its own terms as it would be with any type of loan. These terms are as follows:
- Total amount of loan is up to $40,000
- Up to December 31st, 2022 the loan will be interest free
- If you can pay back the loan on or before December 31st, 2022 then upto $10,000 will be forgiven on the loan
- Being unable to pay back the loan by December 31st, 2022 will have the consequence of the loan turning into a 3-year term loan with a 5% interest rate annually
How Can You Apply?
You can apply where your business mainly operates its banking from. Most big financial institutions have an online access tool for you to apply faster and easier for the loan. Some things to remember while applying are that you should have your Business number and the payroll account number and 2019 gross payroll on hand as any other information they may ask. You may also ask your local accounting firms for more information as well as this link: https://www.canada.ca/en/department-finance/news/2020/03/additional-support-for-canadian-businesses-from-the-economic-impact-of-covid-19.html
Business and Corporations whose payroll is in between $20,000 to $1,500,000 can apply for the Loan at first but later on they changed the eligibility to the loan so that more and more smaller business can still continuously operate and they Indicated that people who have $20,000 t4 or less than that can apply for the Loan as long as they have non deferrable expenses of $40,000 or more. These expenses include subcontractor fees, utilities, rent and any other things we need to continuously operate the business.
Steps to upload Documents:
To be able to upload documents after applying the Loan from whichever financial institution you must directly go to CRA under upload documents and put the invoices or receipts of the non-deferrable expenses and upload it to CRA. You must not Call the Bank for the Loan because the bank is not responsible for approving the Loan Just Call the CRA under the Business Inquiries at 1800 959 5525 and get the needed information from them.
The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Muhammad Nasrullah and Muhammad Nasrullah CPA Professional Corporation will not be held liable for any problems that arise from the usage of the information provided on this page.