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
The new Canada Emergency Business Account (CEBA), which was announced by the Government of Canada on March 27th, 2020 will provide up to $40,000 to small businesses and not-for-profits as an interest-free loan. The intention of this loan is to help cover operating costs during a period where revenue could be reduced.
Earl Grey Credit Union continues to work with our government partners on specific details of the program and while the details are still being finalized, here is some information to help you get ready.
*Applications now open*
WHAT IS THE CEBA LOAN?
- $40,000 interest-free loan to help you cover operating costs you were not able to defer because of COVID-19
- $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is repaid on or before December 31, 2022
- If the loan cannot be repaid by December 31, 2022 it can be converted into a 3-year loan with an interest rate of 5%
- Once your loan application has been reviewed and submitted, the process for funding will take up to 7 days from completion.
HOW DOES THE CEBA LOAN WORK?
- The loan will be funded as a $40,000 term loan, 0% interest and no payments until December 31, 2022
- No interest will apply 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 the month
- If you pay 75% of the balance of the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven
- If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.
What’s the eligibility criteria?
The eligibility criteria are as follows, per the Government of Canada’s requirements:
- Have an existing Earl Grey Credit Union business deposit account opened prior to March 1, 2020 and utilize it as your primary operating account
- Your business has been a registered and operational business since on or before March 1, 2020
- Your payroll expenses are between $20,000 and $1.5 million annually
- You agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax.
- You have not previously used the program and will not apply for support at any other financial institution.
- Your intention is to continue operating your business or to resume operations.
- You agree to participate in post-funding surveys conducted by the Government of Canada.
- You agree that the funds from this loan will only be used to pay non-deferrable operating expenses including, payroll, rent, utilities, insurance, property tax, regularly scheduled debt service and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increase in management compensation.
If you’re not sure if you qualify, we encourage you to discuss your application with your professional accounting partner prior to applying.
What information do I need to apply?
Locate your 2019 T4 Summary of Remuneration Paid statement. You can contact the Canada Revenue Agency to have them re-issue your 2019 statement. We require the following information:
- Your employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid statement.
- Your employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid
A copy of your 2019 T4 Summary of Remuneration Paid may be requested