Canada Emergency Business Account

The Canada Emergency Business Account (CEBA) provides qualifying Commercial Business Banking clients access to a $40,000 term loan:

• 0% interest until December 31, 2022
• No principal payments until December 31, 2022
• Principal repayments can be voluntarily made at any time without fees or penalties
• $10,000 loan forgiveness is available provided $30,000 of the initial principal amount is fully paid on or before December 31, 2022
• If loan is outstanding on January 1, 2023, 5% interest starts but no minimal principal payments required; and remaining balance to be paid in full no later than December 31, 2025

Note: As part of the application and approval process, you will be required to upload required documentation onto a secure portal for EDC to access. Once your CEBA application is approved and verified by the Government of Canada (process is expected to take up to 10 business days), your new CEBA loan will be set up and will be visible on ScotiaConnect. Within 5 days, CEBA proceeds will be deposited to your DDA account designated in the application.

If you are interested in the CEBA program, please contact your Agriculture Relationship Manager, Healthcare & Professional Specialist, Automotive Finance Relationship Manager, or Business Banking Relationship Manager to discuss further.

As part of the application and approval process, you will be required to upload required documentation onto a secure portal for EDC to access.

If you are a business with payroll less than or equal to $20,000, including businesses with no payroll in 2019, you will need to have a federal tax registration and provide:

• Your Canada Revenue Agency Business Number (BN) (9 digits)
• Your business income as reported in your 2019 tax return (or for 2018 if 2019 taxes have not been submitted)
  
• If you are a corporation, the value reported on line 400 of your latest T2
  
• If you are not incorporated, the following values reported in your T1 return for 2019 (or for 2018 is 2019 has not yet been submitted):
  

  T1 Return: Self-Employment Income	Complete if latest T1 is 2018	Complete if latest T1 is 2019
  Net business income	135	13500
  Net Professional income	137	13700
  Net Commission income	139	13900
  Net Farming income	141	14100
  Net Fishing income	143	14300

• Your total Eligible Non-Deferrable Expenses that you are obligated to pay in 2020 (as of March 1, 2020).
  
• The total of your Excluded Expenses, defined as expenses for which you have received or are expecting to receive by December 31, 2020, support or subsidies under other COVID 19 programs.

When you are approved by the Government of Canada and accept the account, you will have access to a $40,000 term loan with a 0% interest rate, no fees, and no repayments of principal until December 31, 2025.

For Commercial Banking Business Clients, CEBA will be offered as a term loan. You will be able to view your term loan through ScotiaConnect.

The interest-free period for CEBA loans ends on December 31, 2022.  A 5% annual interest rate will be applied on the outstanding balance until it is paid off in full. Monthly interest-only payments will begin in January 2023 and the full outstanding principal balance must be repaid no later than December 31, 2025. CEBA loans not paid off in full by December 31, 2022 will no longer be eligible for the $10,000 forgiveness benefit.

Per the requirements of the program, as set out by the Federal Government, clients must agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, and property tax.

Any balance owing on this account can be repaid at any time. To qualify for the $10,000 loan forgiveness, 75% of the maximum outstanding balance of $40,000 must be repaid by December 31, 2022.  You will not be charged any interest charges or service fees.

$10,000 loan forgiveness is available, provided $30,000 of the initial principal amount is fully paid on or before December 31, 2022.  To be eligible for the forgiveness benefit, $30,000 of the loan balance must have been repaid between January 1, 2021 and December 31, 2022.

For businesses with payroll expenses less than or equal to $20,000 to receive the CEBA program, the following eligibility requirements must be met:

• The person applying has the ability and authority to bind the organization.
• Your organization is a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”) that was in operation on March 1, 2020.
  
• Your total employment income paid in the 2019 calendar year was less than or equal to$20,000. You will need to have a federal tax registration and provide:
  
  • Your Canada Revenue Agency Business Number (BN) (9 digits)
    
  • Your business income as reported in your 2019 tax return (or for 2018 if 2019 taxes have not been submitted)
    
  • If you are a corporation, the value reported on line 400 of your latest T2
    
  • If you are not incorporated, the following values reported on your T1 return for 2019 (or for 2018 if 2019 has not yet been submitted):
    

    T1 Return: Self-Employment Income	Complete if latest T1 is 2018	Complete if latest T1 is 2019
    Net business income	135	13500
    Net Professional income	137	13700
    Net Commission income	139	13900
    Net Farming income	141	14100
    Net Fishing income	143	14300

  • Your total Eligible Non-Deferrable Expenses (as defined below) that you were obligated to pay in 2020 (as of March 1, 2020).
    
  • The total of your Excluded Expenses, defined as expenses for which you have received or are expecting to receive by December 31, 2020, support or subsidies under other COVID 19 programs.
    

• Your Eligible Non-Deferrable Expenses MINUS your Excluded Expenses is between $40,000 and $1,500,000.
  
• You must upload documents to EDC evidencing at least $40,000 of Eligible Non-Deferrable Expenses (net of Excluded Expenses) to Government of Canada website prior to being approved for CEBA.
  
• Per the requirements of the program, as set out by the Federal Government, you agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, property tax and regularly scheduled debt service.
  
• You have an active business chequing/operating account at Scotiabank, which is your primary financial institution. Your account was opened prior to March 1, 2020, and you were not in arrears on existing borrowing products, if applicable, with Scotiabank by 90 days or more as at March 1, 2020.
  
• You are not applying for this program at any other financial institution. You understand that applying for support under the Program at more than one financial institution may result in ineligibility under the Program, default under the facility in respect of which this attestation is being provided, prosecution or other enforcement measures available at law or otherwise.
  
• You agree to participate in post-funding surveys conducted by the Federal Government or any of its agents.
  
• You intend to continue to operate your business or to resume operations.
  
• You authorize Export Development Canada, as your representative with the Canada Revenue Agency, to access any required payroll information for the purpose of verifying eligibility.
  

Please note the following businesses are not eligible for CEBA program:

• Government organizations or bodies, or entities owned by a government organization or body.
• Unions, charitable, religious or fraternal organizations or entity owned by such an organization or if it is, it is a registered organization that has filed its T2 return or T3010 return and that generates a portion of its revenue from the sales of goods or services.
  
• Entities owned by any federal Member of Parliament or senator. 
• Entities that promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnicity, religion, culture, region, education, age or mental or physical disability, contrary to applicable laws.

If your business is not able to meet the specific qualification criteria defined by the Federal Government, unfortunately you will not be eligible for this program.  

For additional program details and clarity on eligibility criteria, please visit www.CEBA-CUEC.ca.

Per the requirements of the program, as set out by the Government of Canada, Eligible Non-Deferrable Expenses include:

1. wages and other employment expenses to independent (arm’s length) third parties
2. rent or lease payments for real estate used for business purposes
3. rent or lease payments for capital equipment used for business purposes
4. payments incurred for insurance related costs
5. payments incurred for property taxes
6. payments incurred for business purposes for telephone and utilities in the form of gas,
7. oil, electricity, water and internet
8. payments for regularly scheduled debt service
9. payments incurred under agreements with independent contractors and fees required
10. in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower; and
    
11. any other expense in a category other than the above as may be indicated by the Government of Canada website from time to time as being an Eligible Non-Deferrable Expense for the purpose of the Program.