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

Spardell Trailer Park residents left without running water for three days

Multiple residents told The Free Press it was an ongoing, seemingly endless problem

Sparwood’s Causeway Bay Hotel reports COVID-positive guest

The hotel manager said guests who ate at the Gateway Restaurant at the same time do not need to be tested

Mugshots Cafe is revived via new ownership

The cafe was purchased from its previous owner on August 1

City of Fernie issues water upgrade updates

City changes include construction, water restrictions, and a water quality advisory

Business Beat

Kaitlyn Poirier joins ET Hair Salon

578 British Columbians currently infected with COVID-19

Seventy-eight new cases confirmed in past 24 hours

Conservation seizes fawn illegally kept captive in Vancouver Island home

A Comox Valley resident charged and fined under the Wildlife Act

Pandemic could be driving more parents to get on board with flu shot: study

University of B.C. study gauges willingness for parents to vaccinate children for influenza

Watchdog clears Okanagan RCMP in death of man after arrest over alleged stolen pizzas

The man died in hospital after having difficulty breathing and broken ribs

Have you seen Berleen? B.C. pig destined for sanctuary goes missing

Berleen was less than two weeks from travelling to Manitoba when she vanished

Health Canada says several kids hospitalized after eating edible pot products

People warned not to store cannabis products where children can find them

‘It’s not just about me’: McKenna cites need to protect politicians from threats

Police investigation was launched after someone yelled obscenities at a member of McKenna’s staff

Michigan plans dedicated road lanes for autonomous vehicles

First study of its kind in the U.S. to figure out whether existing lanes or shoulders could be used

Most Read