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

Boundary non-profits now eligible for emergency funds

Local charities can apply to get grants from the $40,000 pot, managed by the Phoenix Foundation

Trial date set in Castlegar RCMP shooting death

Constable Jason Tait has elected a jury trial.

Drive-in theatre proposed for Grand Forks

City councillors will vote next month on whether to permit the use of the private property

A second wave of COVID-19 is probable, if history tells us anything

B.C.’s top doctor says that what health officials have learned this round will guide response in future

Snow expected to hit West Kootenay passes overnight on Thursday

Up to 15 cm of snow could fall on Highway 3 between Paulson summit to Kootenay Pass by Friday morning

B.C. legislature coming back June 22 as COVID-19 emergency hits record

Pandemic restrictions now longer than 2017 wildfire emergency

B.C. sees 9 new COVID-19 cases, one death as officials watch for new cases amid Phase Two

Number of confirmed active cases is at 244, with 37 people in hospital

Nanaimo senior clocked going 50 km/hr over limit says her SUV shouldn’t be impounded

RCMP say they can’t exercise discretion when it comes to excessive speeding tickets

Illicit-drug deaths up in B.C. and remain highest in Canada: chief coroner

More than 4,700 people have died of overdoses since B.C. declared a public health emergency in early 2016

CMHC sees declines in home prices, sales, starts that will linger to end of 2022

CMHC said average housing prices could fall anywhere from nine to 18 per cent in its forecast

B.C. Paralympian named to Canada’s Sports Hall of Fame

Three-time world and Paralympic gold medalist Sonja Gaudet is part of 11-member class

B.C.’s essential grocery, hardware store employees should get pandemic pay: retail group

Only B.C.’s social, health and corrections workers are eligible for top-ups

Restorative pole project underway in Edgewood

The pole was made almost 50 years ago to pay respect to local First Nations

Risk of COVID-19 low in schools, Interior Health states

Medical Health Officer reassures parents as some children and staff head back to class June 1

Most Read