Working with financial institutions, the CEBA provides a loan of up to $40,000 to eligible businesses to assist with their immediate operating cash flow needs. To get the forgiveness the loan has to be paid back in 2021, but it will be interesting to see if the forgiveness actually works out. I applied with TD immediately after I received the invite to do so last Thursday but have not received the funds. As of December 4, 2020, enrolment requests can only be submitted for a new $60,000 CEBA loan or for a $20,000 CEBA expansion to increase the amount of your CEBA loan from $40,000 to $60,000. An attestation is also required. As an example, this is what TD Canada Trust’s agreement lists: The Borrower The CEBA loan forgiveness amount will be calculated as 25% of the LOC outstanding balance. If your bank has set up your CEBA loan so that it is a line of credit, it's very important for you to transfer the funds from the line of credit to your operating account, because the forgivable 25% is based on the maximum balance of the loan up to December 31, 2020, at least for the $40,000 loan. Approval for the $20,000 expansion will not be considered a new loan, but an addition to your existing CEBA loan. Paul Douglas, the Group Head of TD bank group for Canadian Business Banking, recently sent out the following email. income statement, profit and loss … For other new details and FAQ’s click here . The Canada Emergency Business Account (CEBA) is a $60,000 limited-time, interest-free loan for your business until December 31, 2022. On December 4, 2020, several financial institutions opened their portals to allow for applications to the additional $20,000 CEBA loan. This means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid on time. It looks like RBC and CIBC funds are flowing but not TD yet. The CEBA program eligibility criteria have been established by the Government. The CEBA is among the business support measures introduced in the Federal Government’s COVID-19 Economic Response Plan. What it means in practical terms: If you are an RBC client, and you only withdrew, for example, $28,000 out of your $40,000 CEBA line of credit in 2020, you will not be allowed to borrow the remaining $12,000 in 2021 or later years. TD Bank had to rush to put together the IT required to administer the Canada Emergency Business Account (CEBA) program. As announced in the Fall Economic Statement, the application deadline for CEBA has also been extended to March 31, 2021. https://www.purtzki.com/justfordoctors/repaying-the-40000-ceba-loan Per CEBA program requirements, enrolment requests for $40,000 CEBA loans … Eligible new CEBA applicants will automatically receive the increased $60,000 CEBA loan. Repaying $30,000 of a $40,000 CEBA loan on or before December 31, 2022 can result in loan forgiveness of $10,000 (25%). Hopefully they keep it simple, and simply recover funds through taxes on the 10K, but for those who didn't need the 40K to cover expenses (or who have access other programs and didn't need the 40K to bridge) we will see how generous the government is feeling. Caution re Type of CEBA Loan. The following document types are considered invalid as proof of 2020 Eligible Non-Deferrable Expenses for the purposes of CEBA: Financial Statements (i.e.