As of September 11, 2020, the Government of Canada has distributed $29.66B in Canada Emergency Business Account (CEBA) loans to eligible small businesses, including $248M just last week (Stats Below).
However, it looks like BC businesses are sleeping at the wheel when it comes to applying for a program that will net up to $10,000 in free money. To illustrate, Ontario accounts for about 36% of small businesses in Canada, however, it looks like they've claimed over 40% of the 721,781 CEBA loans issued to date. In comparison, British Columbia accounts for about 16% of small businesses in Canada but they've only claimed about 14% of CEBA loans issued to date. As always, if you have a question or think you might want to work together, please get in touch through my Home Page. Also, never miss a blog by following me on LinkedIn or Facebook.
While there are other factors to consider, I doubt that eligibility criteria or the exact make up of small businesses Ontario Vs British Columbia is the cause. Instead, I suspect some BC business owners just aren't aware or haven't bothered applying for the program. Remember: The bar to be eligible for the CEBA is super low! If you had between 1 and 30 employees working for you in 2019, I highly encourage you to check out the program because you're probably eligible. Moreover, the program has been expanded to include businesses that didn't even have a payroll in 2019 but can show that they have eligible non-deferrable expenses.
To summarize the program briefly, if your business qualifies, it can receive up to a $40,000 interest-free loan from the Government of Canada. If the loan is repaid by December 31, 2022, 25% of the loan is forgiven meaning you get to keep up to $10,000 (free money!). The deadline to apply is October 31, 2020 and in my opinion, this is an absolute no brainer; however, for whatever reason less loans are being approved to BC businesses. Change that curve and make sure you talk to your financial institution to get your application started right away.
More information on the CEBA here:
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