Today, Prime Minister Trudeau announced that the federal government will expand the eligibility criteria for the Canada Emergency Business Account (CEBA) to include more small businesses.
The program will now be available to the following businesses: 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. This has the potential to help many more fitness businesses.
The CEBA provides interest-free loans of up to $40,000 to small businesses facing reduced revenues due to the COVID-19 pandemic. Twenty-five per cent of this loan is forgivable if repaid by December 31, 2022 (up to $10,000).
To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 will need:
- A business operating account at a participating financial institution.
- A Canada Revenue Agency business number.
- To have filed a 2018 or 2019 tax return.
- Eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses include costs such as rent, property taxes, utilities, and insurance.
Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions.
More details, including the launch date for applications under the new criteria, will follow in the days to come. Fitness Industry Council of Canada will continue to monitor for further details as well as pursue our lobbying efforts for the sustainability of our industry.