CEBA Program is HERE!
Date Posted: Apr 30, 2020

 

To our Local Businesses

The Government of Canada recently announced the Canada Emergency Business Account (CEBA) Benefit that will support small businesses and non-profits affected by COVID-19.  CEBA will provide interest-free loans, of up to $40,000, to help cover their operating costs during this time where revenues have been temporarily reduced.  

Who can apply?

Small businesses or not-for-profit organizations, registered in Canada, who use their Raymore Credit Union business account for daily operations.  If day-to-day transactions are not done through your Raymore Credit Union account, you must apply for this benefit through your primary financial institution. 

 

Program Details

  • $40,000 interest-free loan to help cover operating costs (payroll, non-deferral expenses)
  • $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is repaid on or before December 31, 2022
  • If the loan cannot be repaid by December 31, 2022 it can be converted into a 3-year loan with an interest rate of 5%
  • Once your loan application has been submitted and approved, the funding process may take 5 business days

 

Credit Terms

  • Loan is funded as a $40,000 term loan, 0% interest and no payments until December 31,2022
  • No interest will apply until January 1, 2023
  • Beginning January 1, 2023, interest accrues on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of the month
  • If you pay 75% of the balance of the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven
  • If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.

 

Eligibility Requirements

The eligibility requirements are as follows, per the Government of Canada’s requirements:

  • You use a business account at Raymore Credit Union for your daily business operations. The account was opened on or prior to March 1, 2020.
  • Your business has been a registered and operational business on or before March 1, 2020.
  • Your business is not a holding company
  • Your payroll expense is between $20,000 and $1.5 million. To confirm this, you will be required to provide the following information:·    

o   Employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid.

o   Employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid.

o   A copy of your 2019 T4 Summary of Remuneration Paid, if requested.

 

  • As per the requirements set out by the Government of Canada, you must agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax.
  • Employer account number, as reported at the top of your 2019 T4 Summary of Remuneration Paid.
  • Employment income reported in Box 14 of your 2019 T4 Summary of Remuneration Paid.
  • A copy of your 2019 T4 Summary of Remuneration Paid (if requested) 

 

How do I Apply?

Applications must be submitted online.  The form should take a few minutes to complete.  To submit your application please click APPLY NOW.  Once your application is submitted and approved, you should receive your funding within 5 business days. 

Please reach out to our Lending Department for further information or questions on the benefit raylending@raymorecu.com or call 1.866.612.2300

For more information on the Saskatchewan Small Business Emergency Payment Program please visit the CEBA Website  

 

 

 

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