Daily Business Banking

Canada Emergency Business Account (CEBA)

Businesses are crucial to local communities. That’s why PenFinancial and the Canadian government are working to support businesses during this difficult time. As part of that support, you can access the Canada Emergency Business Account (CEBA) program.

The Canada Emergency Business Account will provide a $40,000 loan:

  • at 0% interest until December 31, 2022
  • that requires no minimum monthly principal payments until December 31, 2022
  • that allows principal repayments at any time
  • with $10,000 loan forgiveness available when the outstanding balance is fully paid on or before December 31, 2022.

Please refer to https://ceba-cuec.ca/ for more information about the program including eligibility requirements.

Funding is anticipated to occur 4 to 6 business days following the completion of the Credit Agreement. 

PenFinancial is committed to ensuring that all qualifying businesses have an opportunity to participate in the CEBA program. During this busy period, a high volume of applications is anticipated and our response times may be delayed. We’re sorry! In order to speed up the process for all parties, please refer to the PenFinancial website and appropriate government websites prior to reaching out with any questions. Your patience is appreciated.

 

Applying for CEBA is Simple

Want to apply for the CEBA? Confirm you’re eligible by checking the CEBA criteria. Also, be sure that your primary business bank account was opened at PenFinancial prior to March 1, 2020 and that you’re maintaining that account. Then follow these steps:

STEP 1 >  Log in to Online Banking (either Member Direct or Member Direct Small Business)

STEP 2 >  Click on Account Services

STEP 3 >  Click on Canada Emergency Business Account (CEBA)

STEP 4 > Follow the prompts to complete and submit your CEBA application

Once you've completed your application, you will receive a credit agreement by email through our e-sign platform within 24 to 48 hours from “OneSpan Sign”.  The email will guide you through the process of reviewing, executing, and submitting the electronic credit agreement.

CEBA Program Updates

 
Update: September 3rd, 2020

The Government of Canada has announced the application deadline has been extended to October 31, 2020.

 

Update: July 3rd, 2020

Our CEBA 3.0 service provider, Central1 Credit Union advised that we can expect to launch CEBA 3.0 on July 16th or 17th.  Additional delays may be possible.  CEBA 3.0 is more complex than past versions of the program, necessitating additional IT work and other preparations.

PenFinancial is committed to offering this program and we will ensure that it is made available to our Members as quickly as possible.

 

Update: June 22nd, 2020

Finance Canada and Export Development Canada (EDC) continue to work very hard to operationalize the latest version of the Canada Emergency Business Account (CEBA) program.  Unfortunately, implementation has been delayed across all financial institutions.  While the dates are not firm, PenFinancial Credit Union is now expecting to launch CEBA 3.0 during the week of June 29th – July 3rd.

We encourage members to stay informed by periodically checking our website for the most recent updates.

 

Update: June 16th, 2020

Finance Canada and Export Development Canada (EDC) have now released the formal requirements for CEBA 3.0.  In addition to the original program terms and conditions, applicants with annual payroll lower than $20,000 may now apply, subject to the following:

  • A business operating account at a participating financial institution;
  • A Canada Revenue Agency business number;
  • A 2018 or 2019 tax return; and
  • Eligible non-deferrable expenses of between $40,000 and $1.5 million.

Full details can be found on the program’s website.

PenFinancial is now targeting a launch date during the week of June 22 – June 26th.  Stay tuned to our website for additional updates when they become available.

 

UPDATE: June 3RD, 2020

Finance Canada has committed to releasing the formal expanded CEBA eligibility between June 8th – 12th.  The expanded eligibility will include the following:

  • Sole proprietors receiving income directly from their businesses
  • Businesses that rely on contractors
  • Family-owned corporations that pay employees by dividends instead of payroll
  • New businesses that have not yet filed a tax return
  • Businesses operated out of personal bank accounts

PenFinancial will do everything possible to ensure this expanded program is available to our membership as quickly as possible.  Our initial target release date is June 19th, however, delays may be possible.  Check out our website updates as more information becomes available.

 

UPDATE: May 25th, 2020

In light of the Government of Canada’sannouncement that it has expanded the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses, we would like to reassure you that we are aware of the change and will keep you informed of further details regarding the expansion and its implementation timing once we receive them from the EDC and the Department of Finance.

Once the Government of Canada finalizes its requirements, we will incorporate those changes as quickly as possible to our existing CEBA application form. The website will be updated to advise the steps to apply for the program under the expanded criteria.

The Government’s decision means that this $40,000 interest-free loan program is now open to more businesses, particularly some of the smallest businesses which had previously been excluded because they couldn't demonstrate a 2019 $20,000 payroll.

The program will be made available to sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.