If your business is
applying for CEBA and your 2019 payroll was less than $20,000, you will need to
prove your business incurred between $40,000 and $1.5 million in 2020
non-deferrable expenses in 2020.
Eligible expense categories include:
- 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 Borrower.
The following Government of Canada COVID Response Programs, if you participated in any, will cause adjustments to your total 2020 eligible non-deferrable expenses:
- Canada Emergency Wage Subsidy,
- 10% Temporary Wage Subsidy,
- Canada Emergency Commercial Rent Assistance, Regional Relief and Recovery Fund,
- Futurpreneur Canada,
- Northern Business Relief Fund,
- Fish Harvester Grant,
- relief measures for Indigenous businesses, and
- $250 million COVID-19 IRAP (Industrial Research Assistance Program) Subsidy Program
Expenses will be subject to verification and audit by the Government of Canada.