The types of loans offered for businesses are:
- CEBA (Canada Emergency Business Account)
- CEWS 75% (Canada Emergency Wage Subsidy)
- CEWS 10% (Canada Emergency Wage Subsidy)
1. Canada Emergency Business Account
This will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Small businesses and not-for-profits should contact their financial institution to apply for these loans. There is not an online application available for this.
2. CEWS 75%
This will cover up to 75% of the first $58,700 earned by an employee for up to three months. Canadian businesses will be able to receive up to CAD $847 each week — about $607 USD — per employee to help supplement each employee’s wages. The funds would be sent to businesses within a span of two to five weeks. Businesses can receive funding for up to 12 weeks as long as they can prove they have suffered losses due to COVID-19.
This is a temporary three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).