Ottawa Extends Eligibility For Emergency Small Business Loans
OTTAWA — The federal government has expanded eligibility for its emergency small-business loan program.
Prime Minister Justin Trudeau accounted today that more businesses can now get loans through the Canada Emergency Business Account (CEBA).
The CEBA gives interest-free loans to small businesses and not-for-profit organizations to help cover their operating costs affected by Covid-19.
The loans are offered through private banks and credit unions and can be for a maximum of $40,000.
As his daily press briefing, Trudeau explained that requirements for CEBA loans have been loosened to allow more types of small businesses to apply. Newly eligible businesses include:
- Businesses run by a sole owner/operator
- Businesses that rely on contractors, and
- Family-owned businesses that pay employees through dividends
Hair salon owners with stylists who rent chairs, local physiotherapists, and independent gym owners with contracted trainers all fit into those new categories.
“Businesses like yours are the backbone of our economy and the backbones of our communities,” Trudeau said, adding that more details on when these businesses can apply for CEBA loans will come soon.
Trudeau said the federal government is also looking at how it can help other businesses that have been overlooked by Covid-19 relief programs.
He said help may soon be on the way for entrepreneurs who run businesses through their own personal bank accounts and newly created businesses that haven’t yet filed tax returns.
Canada/U.S. Border Remains Closed
Trudeau also announced today a 30-day extension of the partial border closure between the United States and Canada.
The border between the two countries has been closed to “non-essential travel” since late March, while commercial traffic and essential workers have continued to cross.
“This is an important decision that will protect people on both sides of the border,” Trudeau said.
He added that the border remains a “vulnerable point” in the spread of Covid-19 and that the decision to extend the closure was made after “lengthy discussions” with the provinces.
The agreement between the U.S. and Canada that lead to the border closure has already been extended once. It had been set to expire on May 21 but will now continue until at least June 20.
Trudeau did not say if there are plans to keep the agreement past that date.
“The situation is changing rapidly and we’re adjusting constantly… to get that balance right between keeping people safe and that return to normalcy and economic activity people desire,” he said.