If your bank has set up your CEBA loan so that it is a line of credit, it is very important for you to transfer the money from the line of credit to your operating account, since the 25% of financing is based on the maximum loan balance until December 31, 2020, at least for the $40,000 loan. See caution with respect to CEBA accounts created as LOC accounts – you can`t get the $10,000 credit you had planned. It appears that RBC created the CEBA loan as a visa, which would have the same result. This program provides interest-free loans of up to $60,000 to small businesses and not-for-profit businesses to cover their operating costs at a time when their revenues have been temporarily reduced due to the economic benefits of the COVID 19 virus. This will allow them to quickly find services for their communities and create jobs. Maximum loan amount: $60,000, with 20k USD of 60k icy. If the government really wants to help businesses, these loans and rental aid must be provided. I doubt very much that companies will be able to generate cash flow to not only recover their loans, but also repay them. The Co-Lending program partners BDC with TD to provide long-term loans to small and medium-sized businesses to help meet operating cash flow needs.
On October 9, 2020, the Canadian government announced increased support for small businesses and non-profit organizations eligible for CEBA loans – which remain severely affected by the pandemic – by providing $20,000 in additional funding to current CEBA recipients and $60,000 for new applicants. This means that with an existing CEBA $40,000 loan, customers can now apply for the CEBA extension to the tune of $20,000. New eligible CEBA applicants now automatically receive the increased $60,000. The federal government`s expanded ceba program provides $20,000 in additional funding for current CEBA recipients and $60,000 for eligible new applicants. We recommend that new applicants for the $60,000 loan $US use the government`s CEBA pre-screen tool before completing an online application to determine if you are likely to qualify. Approved CEBA loan applications are funded within 12 to 15 business days of application submission and the presentation of the necessary supporting documents. To apply for the CEBA loan via TD, customers must have an active commercial chequing account with TD as of March 1, 2020 and 2019. A full list of entry conditions, terms of sale will be available online tomorrow at www.td.com/businessrelief. Until December 31, 2022, licensed and non-profit businesses will receive up to $60,000 at 0% interest. The balance is then converted into a 3-year loan with an interest rate of 5% per year. The repayment of $30,000 of a $40,000 CEBA loan through December 31, 2022 results in a $10,000 loan. The repayment of $40,000 of a $60,000 CEBA loan on the same date results in a $20,000 loan.
To qualify for the $20,000 CEBA extension loan, you must have been approved and financed for the $40,000 ceba loan and be considered “good” (in other words, your existing loan is not in default, you have not experienced a recruitment event such as bankruptcy, and you continue to hold a current and valid business account at ATB). Existing recipients of the $40,000 CEBA loan can apply online for the $20,000 CEBA extension until March 31, 2021. Approval of the $20,000 extension is not considered a new loan, but a supplement to your existing CEBA loan. New eligible CEBA applicants will automatically receive the increased loan of $60,000 from CEBA. The CEBA extension provides more support to the recipients of the $40,000 loan. Use the online application to apply for the extra $20,000 – the process is quick and easy.