To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada has launched the new Canada Emergency Business Account (CEBA), which has been implemented by eligible financial institutions.
This $55 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus.
Perfect for supporting curling clubs!
The CEBA will allow curling clubs to cover their non-deferrable expenses (such as payroll, rent, utilities, insurance, property tax and regularly scheduled debt service) during this period of financial and operational uncertainty. More importantly, the vast majority of curling clubs qualify to receive CEBA funds because their yearly expenditures amount to totals higher than $40,000 a year.
Curling clubs have nothing to lose: the $40,000 loan offers substantial support for the coming months, should it come to that. Moreover, if the total loan amount is reimbursed by December 31st, 2022, following the mandated guidelines, you will benefit from loan forgiveness of 25%, meaning you may be able to keep up to $10,000 of the original loan amount.
Curling Québec strongly encourages all club administrations to seek out additional information through your banking institution as soon as possible to confirm your organization’s eligibility (you may also refer to the Government of Canada’s website) and begin the application process. Over 200 financial institutions are implementing the CEBA: you will likely be able to register with your preferred bank without complications.
- CEBA is an interest-free loan of up to $40,000 that businesses and non-profits can register for directly through their bank. The federal government guarantees the loan.
- To be eligible, the Borrower must have paid between $20,000 and $1,5 million in salaries or; must have non-deferrable expenses between $40,000 and $1,5 million. The latter condition is of particular interest for curling clubs.
- The loan is reimbursable by December 31, 2022; if the deadline is met, there will be a 25% loan forgiveness, up to $10,000. It will be necessary, therefore, to reimburse $30,000 before the said date for the loan to be considered paid in full.
All details are available online here: https://ceba-cuec.ca/
Your preferred financial institution will also provide you with additional information.