TORONTO, April 8, 2020 /CNW/ - Scotiabank announces the launch of its application process for the Canadian Government's new Canada Emergency Business Account (CEBA), effective April 9th, 2020. The application process will be available via the Scotia mobile banking app and Scotia online banking for Scotiabank Small Business Banking customers, and through their respective relationship managers for Scotiabank Commercial Banking customers.
"As COVID-19 impacts businesses and communities across the country, Scotiabank will continue to be here for our business banking customers. We know the stress COVID-19 has caused for many business owners across Canada, which is why Scotiabank remains committed to making sure our business banking customers can access these funds as quickly as possible," said Dan Rees, Group Head, Canadian Banking. "The Canada Emergency Business Account will provide much needed relief for Canadian small businesses to help manage and sustain their operations through this difficult time."
The CEBA is a government-guaranteed loan of $40,000, designed to help small business owners meet their immediate cash flow needs:
- 0% interest until December 31, 2022
- No principal payments until December 31, 2022
- Principal repayments can be made voluntarily at any time without fees or penalties
- $10,000 loan forgiveness is available, provided $30,000 is paid back on or before December 31, 2022
- If the balance is not paid by December 31, 2022, the remaining balance will be converted to a 3-year term loan at 5% annual interest, paid monthly, effective January 1, 2023
- The full balance must be repaid by no later than December 31, 2025
Consistent with program requirements set by the Government of Canada, customers and clients must agree to use funds from this line of credit to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, and property tax. Businesses and not-for-profits will be eligible to apply for this program from Scotiabank if they have:
- An operating company registered in Canada;
- Annual payroll of between $50,000 and $1,000,000 (based on your 2019 T4SUM Summary of Remuneration Paid); and
- Scotiabank as their primary bank. This means that the business uses a Scotiabank Business Operating Account (opened on or before March 1, 2020).
- For full eligibility criteria and further details, please visit Scotiabank.com/SmallBusinessRelief for Scotiabank Small Business customers and Scotiabank.com/CommercialRelief for Scotiabank Commercial Banking customers.
Scotiabank businesses and customers may also qualify for a variety of other support measures and are encouraged to visit Scotiabank.com for more information.
Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future," we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 100,000 employees and assets of approximately $1.2 trillion (as at January 31, 2020), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews.