Canadian Business Emergency Account (CEBA) (2023)

Highlights of the $60,000 CEBA Loan (including the $40,000 Loan which was increased to $60,000 as part of the CEBA Expansion):

• A $60,000 loan funded by the Government of Canada to help qualifying businesses cover operating costs, salaries and other non-deferred expenses that are critical to maintaining business continuity.
• Until January 20, 2022, CEBA loans were financed in the form of a USD 60,000 revolving credit line through RBC^®A line of credit for small businesses™.
• After January 20, 2022, any outstanding balance of the $60,000 revolving credit line became a non-revolving loan.
• If $40,000 of the $60,000 loan is repaid by December 31, 2023, the $20,000 loan forgiveness will apply.
• Interest does not apply before January 1, 2024.
• From January 1, 2024, interest will be charged on the loan balance 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) has a maturity date and is payable on December 31, 2025.

For details on the Canadian Government's CEBA terms and conditions,click here.

Key Features of the $40,000 CEBA Loan:

• A $40,000 loan funded by the Government of Canada to help eligible businesses cover operating costs, salaries and other non-deferred expenses necessary to maintain business continuity.
• Until January 20, 2022, CEBA loans were financed in the form of a USD 40,000 revolving credit line through RBC^®A line of credit for small businesses™.
• After January 20, 2022, any outstanding balance of the $40,000 revolving credit line became a non-revolving loan.
• The CEBA loan forgiveness amount is based on the maximum balance of the RBC Small Business Line of Credit at any time from the account opening date to January 20, 2022.
• The 25% loan forgiveness will apply if 75% of the maximum loan balance is repaid by December 31, 2023.
• To qualify for the maximum redemption of $10,000, the maximum balance of the RBC Small Business Line of Credit must be $40,000 at any time from the account opening date to January 20, 2022.
• Interest does not apply before January 1, 2024.
• From January 1, 2024, interest will be charged on the term loan balance 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) has a maturity date and is payable on December 31, 2025.

For details on the Canadian Government's CEBA terms and conditions,click here.

For organizations with total earnings (wages) paid to employees in calendar year 2019 over $20,000 and less than $1,500,000:

• The organization must be an active business, i.e. a sole proprietorship, partnership, or Canadian-controlled private corporation that had operations in Canada on March 1, 2020;
• The organization must have an active RBC Business billing or operating account;
• The organization must be a Canadian operating company established on March 1, 2020;
• The organization must have an active CRA business number (BN) with a registration date of March 1, 2020 or earlier;
• The organization must not have RBC accounts or loans past due 90 days or more as of October 31, 2020;
• The organization cannot benefit from or apply for support under the COVID Initiative for Indigenous SMEs or the Regional Relief and Reconstruction Fund earlier.

The owner or authorized person must certify this on behalf of the organizationALL statements contained in the certificate available via this linkare true and correct as required by the Government of Canada.

Certification: Organizations with total employment income of more than $20,000 and less than $1,500,000 in calendar year 2019

For organizations with total employment income (wages) paid to employees in calendar year 2019 of $20,000 or less and non-deferred eligible expenses in 2020 (subject to adjustment for support or grants under other response programs government of Canada COVID pandemic) exceed $40,000 and less than $1,500,000:

• The organization must be an active business, i.e. a sole proprietorship, partnership, or Canadian-controlled private corporation that had operations in Canada on March 1, 2020;
• The organization must have an active RBC Business billing or operating account;
• The organization must be a Canadian operating company established on March 1, 2020;
• The organization must have an active CRA Business Number (BN) with an effective registration date no later than March 1, 2020.
• The organization must not have RBC accounts or loans past due 90 days or more as of October 31, 2020;
• The organization must file a tax return with a credit rating agency for the tax year ending in 2019 or, if the 2019 tax return has not yet been filed, for 2018.
• The organization must not have previously received a CEBA loan and may not apply for a CEBA loan from any other financial institution;
• The organization cannot benefit from or apply for support under the COVID Initiative for Indigenous SMEs or the Regional Relief and Reconstruction Fund earlier; AND
• The organization must have eligible non-deferred estimated expenses, less the amount of benefits the organization has received or expects to receive in 2020 in the form of support or grants from any other Canadian government Covid-19 response program ranging from $40 000 to 1,500,000 dollars.

  The categories of eligible expenses that are not subject to deferral are as follows:

  • Salaries and other labor costs for independent third parties (at arm's length);
  • Fees for renting or leasing real estate used for business purposes;
  • Payments for the rental or leasing of capital goods used for business purposes;
  • Payments incurred for insurance-related costs;
  • Payments incurred for property taxes;
  • Payments made for business purposes for telephone and utilities such as gas, oil, electricity, water and Internet;
  • Periodically scheduled debt service payments;
  • Fees incurred under contracts with independent contractors and fees required to maintain any licenses, authorizations or permits necessary to conduct business for the organization;
  • Payments made for materials used to produce a product that the organization normally offers for sale; AND
  • Any other expenses listed on the Canadian Government website (https://ceba-cuec.ca/) as eligible non-deferred expenses under the CEBA program.

The following expenses are NOT considered eligible expenses that cannot be deferred: Any other payments or expenses such as prepayment/refinancing of existing debt, dividend payments, payouts, management salary increases and related party salary increases.

More details on eligible non-deferred expenses such as the period, how they are calculated and what qualifies as non-deferred expenses can be found atclick hereMore information can be found on the Canadian Government website.

Non-deferred expenses are subject to verification and audit by the Government of Canada.

The owner or authorized person must certify this on behalf of the organizationALL statements contained in the certificate available via this linkare true and correct as required by the Government of Canada.

Certification: Organizations with total employment income of $20,000 or less in calendar years 2019 and 2020, non-deferred eligible expenses (subject to adjustment for support or grants under other Canadian government COVID response programs) over 40 $000 and less than $1,500,000

For organizations that already have a CEBA loan and wish to apply for a $20,000 CEBA extension to increase the loan amount from $40,000 to $60,000:

• The organization must be an active business, i.e. a sole proprietorship, partnership, or Canadian-controlled private corporation that had operations in Canada on March 1, 2020;
• The organization must have an active RBC Business billing or operating account;
• The organization must have an active CRA business number (BN) with a registration date of March 1, 2020 or earlier;
• The organization must not have RBC accounts or loans past due 90 days or more as of October 31, 2020;
• The organization must have previously received a $40,000 CEBA loan from RBC and may not default or default on a CEBA loan;
• The organization cannot obtain or apply for a CEBA loan from any other financial institution; AND
• The organization cannot benefit from or apply for support under the COVID Initiative for Indigenous SMEs or the Regional Relief and Reconstruction Fund earlier.

The owner or authorized person must certify this on behalf of the organizationALL statements contained in the certificate available via this linkare true and correct as required by the Government of Canada.

Certification: $20,000 CEBA extension

Forgiveness and repayment of the $60,000 CEBA loan (including any $40,000 loan increased to $60,000 under the CEBA extension):

• Upon processing of the organization's approved application for registration with CEBA, funds were transferred directly from the organization's RBC Small Business Credit Line to the RBC Business Bank Account listed on the organization's registration application to reflect the $60,000 maximum balance loan amount required under Article . Canadian law. Emergency business account expansion to ensure your organization qualifies for maximum forgiveness
• Until January 20, 2022, the CEBA loan was financed in the form of a USD 60,000 revolving credit line through RBC^®A line of credit for small businesses.
• The organization may repay the loan in whole or in part at any time.
• On January 21, 2022, the outstanding balance of the $60,000 revolving credit line was converted to a non-revolving loan.
• If the organization repays $40,000 of the $60,000 loan by December 31, 2023, forgiveness of the remaining $20,000 will apply.
• Interest does not apply before January 1, 2024.

For more information on the qualifying redemption amount, please contact your RBC Relationship Manager or speak to an advisor at1-800-769-2520.

CEBA loan forgiveness information

• If the organization repays $40,000 of the $60,000 loan by December 31, 2023, forgiveness of the remaining $20,000 will apply.
• To be forgiven, the organization must repay $40,000.
• Loan forgiveness is applicable provided there has been no default in the payment of the CEBA loan.

Forgiveness and repayment of the $40,000 CEBA loan:

• Until January 20, 2022, the CEBA loan was funded through a $40,000 revolving credit line through RBC^®A line of credit for small businesses.
• The organization may repay the loan in whole or in part at any time.
• On January 21, 2022, the outstanding balance of the $40,000 revolving credit line was converted to a non-revolving loan.
• If an organization repays 75% of the maximum balance by December 31, 2023, a 25% loan forgiveness will apply.
• Interest does not apply before January 1, 2024.

CEBA loan forgiveness information

• The CEBA loan forgiveness amount is based on the maximum balance of the RBC Small Business Line of Credit at any time from the account opening date to January 20, 2022.
• To qualify for maximum loan forgiveness, the organization had to pay off the outstanding balance up to $40,000 at any time no later than January 20, 2022.
• If an organization repays 75% of the maximum balance by December 31, 2023, a 25% loan forgiveness will apply.
• If the outstanding balance reaches $40,000 on or before January 20, 2022 and the organization pays $30,000 by December 31, 2023, loan forgiveness of the remaining $10,000 will apply.
• If the outstanding balance reaches less than $40,000 on or before January 20, 2022, and the organization repays 75% of that balance by December 31, 2023, loan forgiveness of the remaining 25% will apply.
• Loan forgiveness is applicable provided there has been no default in the payment of the CEBA loan.

To calculate the organization's return and redemption amounts.

• Organization refund amount = maximum balance amount x 0.75
• Organization redemption amount = maximum balance amount x 0.25

For more information on the qualifying redemption amount, please contact your RBC Relationship Manager or speak to an advisor at1-800-769-2520.

All applications for registration are reviewed and accepted by the Government of Canada and must meet the Canadian Government's eligibility criteria to qualify.

Under the terms of the CEBA program, the Government of Canada periodically checks all applications for validity. The Government of Canada has completed these checks and found that some applications submitted during the CEBA program contain incorrect data or data do not meet the program's eligibility requirements.

If you have any questions about the Government's decision or would like information related to your CEBA registration application or request for redress, please contact the Government of Canada's CEBA Call Center at1-888-324-4201for more details.

You can repay the loan in whole or in part at any time without penalty.

Loan forgiveness applies if you repay your CEBA loan balance less qualifying forgiveness by December 31, 2023.

Interest-only monthly payments are due on the last day of the beginning monthJanuary 1, 2024. No principal payments are required until the dateDecember 31, 2025when the entire loan with all accrued and unpaid interest becomes due.

You can locate your CEBA loan as follows:

• Sign in to RBC Online Banking for Business or RBC Express
• Your CEBA loan appears as a Visa CreditLine account under Credit Cards on the "My Accounts" page.
• To access your funds, please click on your Visa account number
• The CEBA account credit limit will be $60,000 for new enrollments and CEBA Upgrades. If you applied before December 4, 2020 and did not register for the CEBA extension, the limit will display as $40,000

As transfers are made from CEBA funds to RBC's escrow account, the balance will be adjusted. Please note that there are no cash advance fees for transferring CEBA funds.

CEBA loan repayments can be made at any time via the RBC mobile app or online banking. Pleaseclick herefor instructions on how to transfer funds from the company's bank account to a CEBA loan.

You can set up automatic transfers to pay off your CEBA loan over time.

When your CEBA loan balance equals the qualifying loan forgiveness amount, we will automatically apply your loan forgiveness payment and close your loan.

You can also make your CEBA Loan payment via RBC Express, RBC ATM, Telephone Banking or Branch. For more information, please contact your relationship manager or call us on the number1-800-769-2520.

To qualify for loan forgiveness, you must repay your CEBA loan up to your qualifying loan forgiveness amount by December 31, 2023.

On or before December 31, 2023, if the remaining CEBA loan balance equals the qualifying forgiveness amount, we will automatically apply the loan forgiveness amount to bring the loan balance to zero, provided there has been no default on the CEBA loan. We will then close the loan and send you a letter within 4-6 weeks to confirm that your CEBA loan has been closed.

After December 31, 2023, you will need to pay off the entire CEBA loan and reduce your loan balance to zero to close your CEBA loan.

Pleaseclick herefor details on how loan forgiveness is calculated.

For details on a specific CEBA loan forgiveness amount, please contact us at1-800-769-2520or talk to your relationship manager.

Borrowers who meet the Canadian government's eligibility criteria and are in good standing are eligible for CEBA Loan Extensions until December 31, 2023 to qualify for loan forgiveness. If you qualify for the new extended deadline, we'll let you know via email.

For details on loan repayment terms specific to your CEBA loan, please contact us at1-800-769-2520or talk to your relationship manager.

All decisions regarding CEBA loan applications are made by the Government of Canada. Decisions are final and include a statement of compliance with the CEBA eligibility criteria and pass/fail decisions. Neither RBC nor CEBA Call Center can change the eligibility criteria or appeal the decision.

If you have questions about the government's decision or would like information about your CEBA eligibility, please contact the Canadian Government's CEBA Call Center at1-888-324-4201.