Support for businesses impacted by COVID-19

Launched on April 9, 2020, the Canada Emergency Business Account (CEBA) was one of the Government of Canada’s financial relief measures to support Canadian businesses that have been adversely affected by COVID-19. The deadline to apply under the CEBA program was June 30, 2021.

Key Features

Key features of the $60,000 CEBA loan (including a $40,000 loan that was increased to $60,000 as part of the CEBA expansion):

  • A $60,000 loan funded by the Government of Canada to help eligible businesses pay for operating expenses, payroll and other non-deferrable expenses which are critical to sustain business continuity.
  • Until January 20, 2022, CEBA loans were funded as a revolving line of credit for $60,000 through the RBC® CreditLine for Small Business.
  • After January 20, 2022, any outstanding balance on the revolving $60,000 line of credit was converted into a non-revolving loan.
  • If $40,000 of the $60,000 loan is repaid by December 31, 2023, then loan forgiveness of $20,000 will apply.
  • No interest applies before January 1, 2024.
  • Commencing on January 1, 2024, interest will accrue on the balance of the loan at the rate of 5% per annum, payable monthly on the last day of each month.
  • The full amount of the loan (including principal and interest) is due and payable on December 31, 2025.

For details on the CEBA terms and conditions from the Government of Canada, click here.

Key features of the $40,000 CEBA loan:

  • A $40,000 loan funded by the Government of Canada to help eligible businesses pay for operating expenses, payroll and other non-deferrable expenses which are critical to sustain business continuity.
  • Until January 20, 2022, CEBA loans were funded as a revolving line of credit for $40,000 through the RBC® CreditLine for Small Business.
  • After January 20, 2022, any outstanding balance on the revolving $40,000 line of credit was converted into a non-revolving loan.
  • The CEBA loan forgiveness amount is based on the maximum balance on the RBC CreditLine for Small Business at any time between the date of account open and January 20, 2022.
  • Loan forgiveness of 25% will apply if 75% of the maximum loan balance is repaid by December 31, 2023.
  • To qualify for the maximum forgiveness of $10,000, the maximum balance on the RBC CreditLine for Small Business must have been $40,000 at any time between date of account open and January 20, 2022.
  • No interest applies before January 1, 2024.
  • Commencing on January 1, 2024, interest will accrue on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of each month.
  • The full amount of the loan (including principal and interest) is due and payable on December 31, 2025.

For details on the CEBA terms and conditions from the Government of Canada, click here.

Eligibility

The Government of Canada set the CEBA loan eligibility requirements into 2 application streams and also set eligibility requirements for the CEBA expansion. Complete CEBA program details can be found on the Government of Canada website.

The deadline to apply under the CEBA program was June 30, 2021.

For organizations with total employment income (payroll) paid to employees in the 2019 calendar year greater than $20,000 CAD and less than $1,500,000 CAD:

  • The organization must be an active operating business that is a sole proprietorship, partnership or a Canadian-controlled private corporation that was in operation in Canada on March 1, 2020;
  • The organization must have an active RBC Business chequing or operating account;
  • The organization must be a Canadian operating business in operation as of March 1, 2020;
  • The organization must have an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020;
  • The organization must not have any accounts or loans at RBC that were in arrears by 90 days or more as at October 31, 2020;
  • The organization must not have previously used and must not apply for support under the COVID Indigenous SMEs Initiative or the Regional Relief and Recovery Fund.

The owner or an authorized individual must attest on behalf of the organization that ALL of the statements in the attestation provided through this link are true and correct, as required by the Government of Canada.

Attestation: Organizations with a total employment income paid greater than $20,000 and less than $1,500,000 in the 2019 calendar year

For organizations with total employment income (payroll) paid to employees in the 2019 calendar year of $20,000 or less and 2020 Eligible Non - Deferrable Expenses (subject to adjustments for support or subsidies under other Government of Canada COVID response programs) greater than $40,000 and less than $1,500,000.:

  • The organization must be an active operating business that is a sole proprietorship, partnership or a Canadian-controlled private corporation that was in operation in Canada on March 1, 2020;
  • The organization must have an active RBC Business chequing or operating account;
  • The organization must be a Canadian operating business in operation as of March 1, 2020;
  • The organization must have an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.
  • The organization must not have any accounts or loans at RBC that were in arrears by 90 days or more as at October 31, 2020;
  • The organization must have filed an income tax return with the CRA with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018.
  • The organization must not have previously been granted a CEBA loan and must not apply for a CEBA loan at any other financial institution;
  • The organization must not have previously used and must not apply for support under the COVID Indigenous SMEs Initiative or the Regional Relief and Recovery Fund; and
  • The organization must have eligible estimated non-deferrable expenses, less the amount of benefits the organization has received or is expecting to receive in 2020 in support or subsidies under any other Government of Canada COVID-19 response programs, of between $40,000 and $1,500,000.

    The Eligible Non - Deferrable Expense categories are the following:
    • Wages and other employment expenses to independent (arm’s length) third parties;
    • Rent or lease payments for real estate used for business purposes;
    • Rent or lease payments for capital equipment used for business purposes;
    • Payments incurred for insurance related costs;
    • Payments incurred for property taxes;
    • Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
    • Payments for regularly scheduled debt service;
    • Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the organization;
    • Payments incurred for materials consumed to produce a product ordinarily offered for sale by the organization; and
    • Any other expense as indicated on the Government of Canada web page (https://ceba-cuec.ca/) as being an eligible non-deferrable expense for the purpose of the CEBA program.

The following expenses are NOT considered eligible non-deferrable expenses: Any other payments or expenses such as prepayment / refinancing of existing debt, payments of dividends, distributions, increases in management compensation and increases of the compensation of related parties.

For more details on non-deferrable eligible expenses such as the time period, how to calculate and what qualifies as non-deferrable expenses, please click here to learn more at the Government of Canada’s website.

Non - Deferrable Expenses are subject to verification and audit by the Government of Canada.

The owner or an authorized individual must attest on behalf of the organization that ALL of the statements in the attestation provided through this link are true and correct, as required by the Government of Canada.

Attestation: Organizations with a total employment income paid of $20,000 or less in the 2019 calendar year and 2020 Eligible Non - Deferrable Expenses (subject to adjustments for support or subsidies under other Government of Canada COVID response programs) greater than $40,000 and less than $1,500,000

For organizations with an existing CEBA loan that want to apply for the $20,000 CEBA expansion to increase the amount of their loan from $40,000 to $60,000:

  • The organization must be an active operating business that is a sole proprietorship, partnership or a Canadian-controlled private corporation that was in operation in Canada on March 1, 2020;
  • The organization must have an active RBC Business chequing or operating account;
  • The organization must have an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020;
  • The organization must not have any accounts or loans at RBC that were in arrears by 90 days or more as at October 31, 2020;
  • The organization must have previously been granted a $40,000 CEBA loan at RBC and must not have breached the terms of and must not be in default under the CEBA loan;
  • The organization must not have obtained and must not apply for a CEBA loan at any other financial institution; and
  • The organization must not have previously used and must not apply for support under the COVID Indigenous SMEs Initiative or the Regional Relief and Recovery Fund.

The owner or an authorized individual must attest on behalf of the organization that ALL of the statements in the attestation provided through this link are true and correct, as required by the Government of Canada.

Attestation: $20,000 CEBA expansion

Information about CEBA loan forgiveness and repayment

Loan forgiveness and repayment for a $60,000 CEBA loan (including any $40,000 loan that has been increased to $60,000 as part of the CEBA expansion):

  • When the organization’s approved CEBA enrolment request was processed, funds were transferred directly from the organization’s RBC CreditLine for Small Business into the RBC Business banking account indicated on the organization’s enrolment request to reflect a maximum loan balance of $60,000, which is a requirement under the Canada Emergency Business Account expansion to ensure that the organization qualifies for maximum forgiveness
  • Until January 20, 2022, the CEBA loan will be funded as a revolving line of credit for $60,000 through the RBC® CreditLine for Small Business.
  • The organization can repay the loan in part or in full at any time.
  • On January 21, 2022, outstanding balance on the revolving $60,000 line of credit was converted into a non-revolving loan.
  • If the organization repays $40,000 of the $60,000 loan by December 31, 2023, then loan forgiveness of the remaining $20,000 will apply.
  • No interest applies before January 1, 2024.

For more information on your eligible forgiveness amount, contact your RBC relationship manager or speak with an advisor at 1-800-769-2520.

Understanding the CEBA loan forgiveness amount

  • If the organization repays $40,000 of the $60,000 loan by December 31, 2023, then loan forgiveness of the remaining $20,000 will apply.
  • The organization must repay $40,000 in order to qualify for forgiveness.
  • Loan forgiveness applies provided that no default under the CEBA loan has occurred.

Loan forgiveness and repayment for a $40,000 CEBA loan:

  • Until January 20, 2022, the CEBA loan will be funded as a revolving line of credit for $40,000 through the RBC® CreditLine for Small Business.
  • The organization can repay the loan in part or in full at any time.
  • On January 21, 2022, the outstanding balance on the revolving $40,000 line of credit was converted into a non-revolving loan
  • If the organization repays 75% of the maximum balance by December 31, 2023, then loan forgiveness of the 25% will apply.
  • No interest applies before January 1, 2024.

Understanding the CEBA loan forgiveness amount

  • The CEBA loan forgiveness amount is based on the maximum balance on the RBC CreditLine for Small Business at any time between the date of account open and January 20, 2022.
  • In order to qualify for maximum loan forgiveness, the organization needed to bring the outstanding balance to $40,000 at any point in time on or before January 20, 2022.
  • If the organization repays 75% of the maximum balance by December 31, 2023, then loan forgiveness of the 25% will apply.
  • If the outstanding balance reached $40,000 on or before January 20, 2022 and the organization repays $30,000 by December 31, 2023, then loan forgiveness of the remaining $10,000 will apply.
  • If the outstanding balance reached an amount less than $40,000 on or before January 20, 2022 then if the organization repays 75% of that balance by December 31, 2023, then loan forgiveness of the remaining 25% will apply.
  • Loan forgiveness applies provided that no default under the CEBA loan has occurred.

Examples of CEBA loan repayment and forgiveness amounts

Examples of CEBA loan repayment and forgiveness amounts
Maximum Balance on or before Jan 20, 2022 Amount Repaid on or before Dec 31, 2023 Forgiveness Amount (Don’t have to repay)
Company A $40,000 $30,000 (75%) $10,000 (25%)
Company B $20,000 $15,000 (75%) $5,000 (25%)
Company C $0 (never used funds) $0 $0

To calculate the organization’s repayment and forgiveness amounts

  • The organization’s repayment amount = the maximum balance amount x 0.75
  • The organization’s forgiveness amount = the maximum balance amount x 0.25

For more information on your eligible forgiveness amount, contact your RBC relationship manager or speak with an advisor at 1-800-769-2520.

Frequently Asked Questions

Canada Emergency Business Account (CEBA)

No,the deadline to apply under the CEBA Program was June 30, 2021.

Businesses were not permitted to apply for CEBA at more than one financial institution. Having a CEBA loan at more than one bank may result in ineligibility for your CEBA loan as well as legal prosecution by the Government of Canada.

Each business needed to individually meet the eligibility criteria and only one CEBA loan is permitted per 9 digit CRA Business Number.

All enrolment requests are reviewed and decisioned by the Government of Canada and must meet the Government of Canada’s eligibility criteria in order to qualify.

Pursuant the terms of the CEBA program, all applications are reviewed for accuracy from time to time by the Government of Canada. The Government of Canada has completed these verifications and some applications submitted over the course of the CEBA program have been found to have incorrect data or data that was outside of program eligibility requirements.

If you have any questions about the Government’s decision or would like information related to your CEBA enrolment request or remediation request, please contact the Government of Canada’s CEBA Call Centre at 1-888-324-4201 for additional details.

There are a number of other relief measures that are being provided by the Government of Canada through its Canada’s COVID-19 Economic Response Plan to help support individuals and businesses. Please click here for further details.

Loan Terms and Accessing Your Loan

To access the Terms and Conditions for the CEBA loan, please click here.

No interest applies until January 1, 2024. Commencing on January 1, 2024, interest will accrue on the balance of the loan at the rate of 5% per annum, payable monthly on the last day of each month.

You may repay the loan in part or in full at any time without penalty.

Loan forgiveness applies if you repay the CEBA loan balance minus the eligible forgiveness by December 31, 2023.

Monthly interest only payments are required on the last day of the month commencing January 1, 2024. No principal repayments are required until December 31, 2025 when the entire loan and all accrued and unpaid interest becomes due and payable.

You can locate your CEBA loan as follows:

  • Log in to RBC Online Banking for Business or RBC Express
  • Your CEBA loan is listed as a Visa CreditLine account under Credit Cards on your ‘My Accounts’ page
  • To access the funds, click on the Visa account number
  • The credit limit of the CEBA account will be $60,000 for new and CEBA Expansion enrolments. If you applied before December 4, 2020 and did not enrol into the CEBA Expansion, the limit will appear as $40,000

As transfers from your CEBA funds into your RBC Business Deposit Account are made, the balance will adjust. Please note that there are no cash advance fees to transfer your CEBA funds.

Loan Repayment and Forgiveness

Payments to your CEBA loan can be made at any time through the RBC mobile app or online banking for business. Please click here for instructions on how to transfer funds from your business bank account to your CEBA loan.

You can set up an automatic transfers to repay your CEBA loan over time.

Once the balance of your CEBA loan equals your eligible loan forgiveness amount, we will automatically apply your loan forgiveness payment and close your loan.

You can also make payments to your CEBA loan through RBC Express, an RBC ATM, telephone banking or branch. For more information, please contact your relationship manager or call us at 1-800-769-2520.

In order to qualify for loan forgiveness, you need to repay your CEBA loan down to your eligible loan forgiveness amount on or before December 31, 2023.

On or before December 31, 2023, if the outstanding balance remaining on your CEBA loan equals your eligible forgiveness amount, then we will automatically apply your loan forgiveness amount to bring the loan balance to zero provided that no default under the CEBA loan has occurred. We will then close the loan and send you a letter by mail within 4-6 weeks to confirm that your CEBA loan has been closed.

After December 31, 2023, you will need to repay your CEBA loan in full and bring the loan balance to zero in order to close your CEBA loan.

Please click here for details on how loan forgiveness is calculated.

For details on loan forgiveness amount specific to your CEBA loan, please contact us at 1-800-769-2520 or speak with your relationship manager.