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Borrowing
Your business matters are important to Earl Grey Credit Union. 

We know that successful businesses help grow successful communities. Your business really does matter!

Flexible and convenient financing is available to support or expand your business. We can provide term loans, mortgages or revolving credit loans to assist with operating expenses or the purchase of land, equipment or other capital assets.

Our lending experts are committed to providing you with quick approvals.


Canada Emergency Business Account (CEBA)

Earl Grey Credit Union small business and non-profit members may be eligible to receive an interest-free loan of up to $40,000 through the federal government’s $25 billion Canada Emergency Business Account (CEBA) that was launched earlier this year to help businesses cover operating costs during the COVID-19 crisis, where revenue could be reduced.


Repaying the balance of the loan on or before December 31, 2022, will result in loan forgiveness of 25% (up to $10,000).


We are excited to announce that we have transitioned our application process to the newly expanded Canada Emergency Business Account (CEBA).
If you’re a sole proprietor, farmer, or a business owner that uses contractors or does not have payroll, you may qualify under the expanded CEBA program.


The expanded CEBA has broadened to include owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, family-owned corporations remunerating in the form of dividends rather than payroll.


If you’re not sure if you qualify, we encourage you to discuss your application with your professional accounting partner prior to applying.

 

Please note: Once an application is made, it will take approximately 10-15 business days to receive funds. The processing time commences once your application form and all required supporting documentation are received by the Government of Canada.


APPLY FOR CEBA

 

What's the eligibility criteria?

 

  • Have an active Earl Grey Credit Union Credit Union business deposit account opened prior to March 1, 2020 and use it as your primary operating account. The account has not been in arrears on existing borrowing facilities, if applicable, by 90 days or more as at March 1, 2020.
  • Your business has been a registered and operational business since on or before March 1, 2020
  • Your total employment income paid in the 2019 calendar year was between $20,000 and $1,500,000. If you’re an applicant with $20,000 or less in total employment income paid in the 2019 calendar year:
    • You have a Canada Revenue Agency business number and have filed a 2018 or 2019 tax return.
    • You have eligible non-deferrable expenses between $40,000 and $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.
  • You haven’t previously used the Program and will not apply for support under the Program at any other financial institution.
  • You intend to continue to operate your business or to resume operations.
  • You agree to participate in any Government of Canada post-funding surveys

What’s included in the Eligible Non-Deferrable expense categories?

  • Wages and other employment expenses to independent (arm’s length) third parties;
  • Rent or lease payments for real estate used for business purposes;
  • Rent or lease payments for capital equipment used for business purposes;
  • Payments incurred for insurance related costs;
  • Payments incurred for property taxes;
  • Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
  • Payments for regularly scheduled debt service;
  • Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.

What are the details of the expanded CEBA?

There are now two CEBA application streams:


Payroll Stream:
For businesses with total employment income paid to employees in 2019 greater than $20,000 and less than $1,500,000. If you hold your primary business account with Earl Grey Credit Union, you can submit your application under the Payroll Stream using the link above. You will need your 2019 T4SUM statement and 15 digit CRA business number to apply.

 

  • Once your application has been received and processed by the government, an Earl Grey Credit Union loans officer will be in touch with you to discuss next steps. Your application will not be approved until all necessary supporting documents are received. You should expect to receive funding within 10-15 business days of approval.


Non-Deferrable Expenses Stream:
For businesses with total employment income paid to employees in 2019 of $20,000 or less and 2020 Eligible Non-Deferrable Expenses (subject to adjustments for support or subsidies under other Government of Canada COVID response programs) greater than $40,000 and less than $1,500,000.

 

  • CEBA applications under the 2020 Eligible Non-Deferrable Expenses Stream will follow a two-step process:

    Step 1:

    • If you hold your primary business account with Earl Grey Credit Union, you can initiate an application by using the link above. You will need your 9 digit CRA business number and their 2018 or 2019 income tax (most recent filed) to apply.

    Step 2:

    • Once you apply, you’ll be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.
    • You will need three main pieces of information to complete the application:
    1. The name of the financial institution where you submitted your application; and
    2. Your 9-digit business number (same number you used in your application with your financial institution); and
    3. Electronic or paper copies of Receipts / Invoices / Agreements to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.
    • Once your application has been received and processed by the government, an Earl Grey Credit Union Loans Officer will be in touch with you to discuss next steps. Your application will not be approved until all necessary supporting documents are received. You should expect to receive funding within 10-15 business days of approval.

How does the CEBA work?

  • The Canada Emergency Business Account will be funded as a term loan for an amount up to $40,000
  • No interest will apply on the loan until January 1, 2023
  • Beginning January 1, 2023, interest accrues on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of each month
  • After December 31, 2022, any outstanding balance on the term loan will be converted into a non-revolving 3-year term loan maturing on December 31, 2025, at which time the balance must be paid in full
  • If you pay 75% of the balance owing on the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your initial loan amount was $40,000 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven
  • If you do not repay 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest must be paid in full prior to December 31, 2025.

Where can I find more information?

If you want to know more about eligibility or applying, visit https://ceba-cuec.ca/