Support for businesses impacted by COVID-19

Launched on April 9, 2020, the Canada Emergency Business Account (CEBA) is one of the Government of Canada’s financial relief measures to support Canadian businesses that have been adversely affected by COVID-19. Eligible businesses that are approved by the Government of Canada get access to a loan to help pay for non-deferrable operating expenses such as rent, payroll and insurance which are critical to sustain business continuity

For more information on other business relief programs, please click here or call us at 1-888-648-3511.

Key Features

Key features of the $60,000 CEBA loan (including any $40,000 loan that has been 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 will be 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 will be converted into a non-revolving term loan.
  • If $40,000 of the $60,000 loan is repaid by December 31, 2022, then loan forgiveness of $20,000 will apply.
  • No interest applies before January 1, 2023.
  • Commencing on January 1, 2023, 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.

Key features of the $40,000 CEBA loan (for any CEBA loan recipient that does not apply or is not eligible for the CEBA expansion):

  • 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 will be 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 will be converted into a non-revolving term 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 when 75% of your maximum loan balance is repaid by December 31, 2022.
  • 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, 2023.
  • Commencing on January 1, 2023, 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 CEBA application period has closed (the deadline to apply under the CEBA program was June 30, 2021). We are unable to accept any new CEBA enrolment requests.

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 is processed, funds are 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, the outstanding balance of the CEBA loan will convert to a term loan.
  • If the organization repays $40,000 of the $60,000 loan by December 31, 2022, then loan forgiveness of the remaining $20,000 will apply.
  • No interest applies before January 1, 2023.

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, 2022, 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 of the CEBA loan will convert to a term loan.
  • If the organization repays 75% of the maximum balance by December 31, 2022, then loan forgiveness of the 25% will apply.
  • No interest applies before January 1, 2023.

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 must 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, 2022, then loan forgiveness of the 25% will apply.
  • If the outstanding balance reaches $40,000 and the organization repays $30,000 by December 31, 2022, then loan forgiveness of the remaining $10,000 will apply.
  • If the outstanding balance reaches an amount less than $40,000, then if the organization repays 75% of that balance by December 31, 2022, 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, 2022 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 CEBA application period has closed (the deadline to apply under the CEBA program was June 30, 2021). We are unable to accept any new CEBA enrolment requests.

In order to be eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan, an applicant must be an active operating business that is a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”) that was in operation in Canada on March 1, 2020. Other types of business entities are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan.

No, they are similar but not the same. Your organization's CRA Business Number is the first 9 digits of your GST/HST account number, or the first 9 digits of the Employer Account Number if your organization filed a 2019 T4 Summary of Remuneration Paid.

Your Employer Account Number is the 15-character CRA account number which is found at the top of your organization’s 2019 T4 Summary of Remuneration Paid.

If you applied for a CEBA loan in the non-deferrable expenses stream, you are required to upload documentation to the Government of Canada’s web page for verification to support the $40,000 or more of your organization’s estimated Eligible Non-Deferrable Expenses for 2020.

The Government of Canada will rely upon the accuracy and truthfulness of the information and associated documentation you provide in your application to approve or decline your enrolment request.

When uploading documents please follow the instructions and tips on the CEBA Document Upload Instruction Guide(PDF).

IMPORTANT: If you applied for a CEBA loan based in the non-deferrable expenses stream, the Government of Canada will not review your request to enrol until the documentation supporting your Eligible Non-Deferrable Expenses are uploaded into the government web page. Your request to enrol in CEBA will remain incomplete and will not be considered for funding.

The Government of Canada web page

For more information and detailed instructions on the upload process, please review the Government of Canada Document Upload Instruction Guide(PDF) and FAQ(opens to external site).

Please click here(opens to external site) to link to the Government of Canada website and upload your documents as part of the enrolment request process for the CEBA Non-Deferrable Expenses Stream.

No. Businesses cannot apply for CEBA at more than one financial institution. Doing so may result in ineligibility as well as legal prosecution by the Government of Canada.

Each business entity may be eligible for CEBA provided that it has its own 9 digit CRA business number. Each business must individually meet the eligibility criteria and only one CEBA loan will be approved per 9 digit CRA business number.

You can access the Government of Canada’s online self-serve tool or contact the Government of Canada’s CEBA Call Centre. The self-serve tool will display the same information that is on file with the call centre and will be able to address the following types of questions:

  • What is the status of my application?
  • Why was my application declined? How can I fix those errors if applicable?
  • Why was my submitted document rejected?

To access the Government of Canada’s online self-serve tool, visit: https://status-statut.ceba-cuec.ca(opens to external site) to obtain real-time detailed information about your application status. You will need to have the following information to view the status of your application:

  • The name of the financial institution through which you applied for CEBA
  • Your 9-digit CRA business number
  • The applicable T1, T2, T2 Short, or T4 SUM used in your CEBA application

Please wait 5 to 7 business days after submitting your enrolment request and uploading any required documentation before checking your status.

Alternatively, you can contact the Government of Canada’s CEBA Call Centre at 1-888-324-4201. The CEBA Call Centre is operating as a call-back only service to manage customer wait times. No live agents will be available. You will be prompted to leave your contact details so that you can be entered in the cue for a call back from a live agent within the CEBA Call Centre’s operating hours.

Once the government has completed its verification process and let RBC know, RBC will email you to communicate the government’s decision regarding your organization’s enrolment request.

If your organization is approved by the Government of Canada, we will email you and will provide further details regarding the processing of your CEBA loan or CEBA expansion and how to access it.

If your organization is declined by the Government of Canada, RBC will email you and include the reasons provided by the Government of Canada for the decline.

If there are issues with the documentation your organization uploaded at the Government of Canada webpage, the Government of Canada will let us know and we will send you an email with the details provided.

If you have submitted an enrolment request for the Canada Emergency Business Account (CEBA) and have the following questions:

  • What is the status of my application?
  • Why was my application declined?
  • Why was my submitted document rejected?

Please contact the Government of Canada’s CEBA Call Centre at 1-888-324-4201. The CEBA Call Centre is operating as a call-back only service to manage customer wait times. No live agents will be available. Instead, you will be prompted to leave your contact details so that you can be entered in the cue for a call back from a live agent within the CEBA Call Centre’s operating hours.

NOTE: If your CEBA loan enrolment request has been declined and the reason provided relates to the inability of the Government of Canada to find or match information in the Canada Revenue Agency database with the information provided in your CEBA enrolment request, please contact the Canada Revenue Agency and not the CEBA Call Centre to discuss or rectify the issue described. The email that you receive communicating the Government of Canada’s decline of your application will include the reason provided to us by the Government of Canada for the decline.

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.

Clients with any such discrepancies will be notified and they may need to provide additional or updated information to the Government of Canada further to their request for the $20,000 CEBA expansion.

Depending on the reason for which your $20,000 expansion application was not successful, you may be able to remedy your application. If this situation applies to you, we will let you know by email. The application deadline of June 30, 2021 does not apply in this situation.

If you have any questions about the Government’s decision or would like information related to your CEBA expansion enrolment request, please contact the Government of Canada’s CEBA Call Centre at 1-888-324-4201 for additional details. The CEBA Call Centre is operating as a call-back only service to manage customer wait times. No live agents will be available. Instead, you will be prompted to leave your contact details so that you can be entered in the cue for a call back from a live agent within the CEBA Call Centre’s operating hours.

$60,000 CEBA loan

Once the government has completed its verification process, RBC will let you know by email whether or not the government has approved your organization’s enrolment.

Once you’ve met the qualification criteria outlined by the Government of Canada and your enrolment is approved, within 7 business days of government approval the $60,000 loan will be made available through the RBC Visa CreditLine for Small Business and funds will be transferred in full directly from your RBC CreditLine for Small Business into the RBC Business banking account indicated on your enrolment request to reflect a maximum loan balance of $60,000, which is a requirement under the Canada Emergency Business Account program to ensure that you qualify for maximum forgiveness.

You can repay the loan in part or in full at any time by transferring funds directly from your RBC Business banking account to your RBC CreditLine for Small Business through RBC Online Banking for Business.

A credit card will not be issued. Your RBC CreditLine for Small Business account will appear in your list of accounts on your RBC Online Banking for Business or RBC Express profile Your e-statement will be delivered to your RBC Online Banking for Business for viewing.

$20,000 CEBA expansion

Once the government has completed its verification process, RBC will let you know by email whether or not the government has approved your organization’s enrolment.

Once you’ve met the qualification criteria outlined by the Government of Canada and your enrolment is approved, within 7 business days of government approval the amount of your loan will be increased from $40,000 to $60,000 and funds will be transferred directly from your existing RB CreditLine for Small Business into the RBC Business banking account indicated on your enrolment request to reflect a maximum loan balance of $60,000, which is a requirement under the Canada Emergency Business Account program to ensure that you qualify for maximum forgiveness. The amount of the transfer will be equal to $60,000 less the balance on your RBC CreditLine for Small Business on the day of the transfer. This will bring your outstanding loan balance to $60,000.

You can repay the loan in part or in full at any time by transferring funds directly from your RBC Business banking account to your RBC Visa CreditLine for Small Business through RBC Online Banking for Business.

As a reminder, a credit card was not issued and your RBC CreditLine for Small Business account appears in your list of accounts on your RBC Online Banking for Business or RBC Express profile. Your e-statement will be delivered to your RBC Online Banking for Business for viewing.

As a result of the– CEBA program changes, RBC will automatically transfer funds from your RBC CreditLine for Small Business to your selected RBC Business banking account to simplify the client experience and provide more immediate access to critical funds. The automatic transfer of funds also ensures that the full amount of the CEBA loan will be used in the forgiveness calculation.

This will occur if the balance on your RBC CreditLine for Small Business was less than $40,000 on the day of the transfer. Under the CEBA expansion, the amount of the transfer will be equal to $60,000 less the balance on your RBC CreditLine for Small Business on the day of the transfer to bring your outstanding loan balance to $60,000 which is a requirement under the CEBA Expansion program to ensure that maximum loan forgiveness is received.

The loan can be repaid in part or in full at any time by transferring funds directly from your RBC business banking account to the existing RBC CreditLine for Small Business.

Please click here for more details on repayment and loan forgiveness.

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. Additional government relief measures offered through the Business Development Bank of Canada (BDC) and the Export Development Canada (EDC) can be found here.

RBC is also offering a number of temporary relief solutions that may help business clients affected by COVID-19, please click here for further details.

Yes. Please review the Government of Canada's Relief for Business to determine which programs you may be eligible for.

If you require more funding than offered by CEBA, please speak with your RBC Account Manager or call RBC Telephone Banking to explore other RBC solutions to support your additional financing needs. Details on additional government initiatives to support businesses, including the Business Development Bank of Canada (BDC) Co-Lending Facility and the Export Development Canada (EDC) Business Credit Availability Program continue to be released. Check the Government of Canada website regularly for the latest 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, 2023. Commencing on January 1, 2023, 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.

You may repay the loan in part or in full at any time without penalty. Monthly interest only payments are required on the last day of the month commencing January 1, 2023. No principal repayments are required until December 31, 2025 when the entire loan and all accrued and unpaid interest becomes due and payable.

No. When you enrol for CEBA, a credit card is not issued.

No, there are no cash advance fees to transfer your CEBA funds into your RBC Business Deposit Account.

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 account under Credit Cards on your ‘My Accounts’ page
  • To access the funds, click on the Visa account number
  • The credit limit of the Visa 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

Please note: No credit card plastic will be issued.

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.