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

Four staff members at the Okanagan Men’s Centre have tested positive for COVID-19 since Oct. 23, 2020. (Adult and Teen Challenge OMC photo)
Four positive COVID-19 cases at Okanagan Men’s Centre

Those affected are staff and have been in isolation since Oct. 23

Dr. Trina Larsen Soles recommends cotton face coverings, as they are the most effective. (Claire Palmer photo)
Golden’s physicians warn of second wave

It is now expected that everyone wear a mask while indoors in public places

The Physicians of Golden are recommending to follow BC Centre for Disease Control guidelines this weekend and to have a safe Halloween celebration. (Physicians of Golden photo)
Physicians of Golden back up BC CDC Halloween guidelines

There’s a couple tips for how to safely celebrate Halloween at home

The intersection of Highway 95 and Park Drive is currently under construction as a part of this project. (Claire Palmer photo)
Traffic pattern changes and construction on Highway 95 in Golden

The work is a part of preliminary work for the final phase of the Kicking Horse Canyon Project

Kicking Horse Mountain Resort will be looking to crack the Top 10 Ski Resorts list by USA Today for the second straight year. (Claire Palmer photo)
Kicking Horse tapped as one of North America’s favourite ski resorts

The resort finished in tenth in the same poll last year

Sooke’s Paul Larouche, aka PioneerPauly on YouTube, uses a metal detector in hopes to find gold flakes along his claim of the Sooke River. (Aaron Guillen/News Staff)
VIDEO: Island man finds niche audience by gold-panning on YouTube

Paul Larouche, 29, with over 215,000 subscribers, opens up about his journey

Superintendent of the Kelowna RCMP, Kara Triance. (Capital News file)
Non-violent crime, small population contributes to Kelowna’s crime rate spike, says RCMP

Kelowna RCMP is assuring the public the city is a safe place

RCMP. (Phil McLachlan - Black Press Media)
Crime up 31 per cent in Vernon in 2019: Statistics Canada

Increase includes a 45 per cent rise in violent Criminal Code violations

A study by SlotsOnlineCanada notes there is at least 88 hours of top-rated horror movies for Canadians to consume this Halloween. (Unsplash)
Spooks and Chill study reveals Canada’s favourite horror flicks

88 hours of top-rated horror movies can fill COVID-19 Halloween

A Tuesday Oct. 27, 2020 apartment fire in Penticton killed two and displaced dozens more. (Brennan Phillips - Western News)
Fatal Penticton apartment fire deemed accidental

The blaze gutted an apartment building on Tuesday morning, killing two people and displacing dozens

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. THE CANADIAN PRESS/Paul Chiasson
Interior Health reports seven more COVID-19 cases

Eighty-nine cases remain active, none of whom are currently hospitalized

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Burnaby RCMP responded to a dine-and-dash suspect who fell through a ceiling in March 2020. (RCMP handout)
VIDEO: Suspected dine-and-dasher falls through ceiling of Burnaby restaurant

A woman believed to be dashing on her restaurant bill fell through the kitchen ceiling

This Photoshopped version of the crosswalks near the entrance to the Salmon Arm Arts Centre on Hudson Avenue show what is proposed to help create safety for and show inclusivity to the LGBTQ2S+ community. (Salmon Arm Arts Centre image)
Tri-rainbow crosswalk and Progress flag requested to help make Salmon Arm safe

Council will consider budget requests to help make city inclusive to LBGTQ2S+ community

Most Read