CEBA Loans

Helping businesses through financial uncertainty


What is the Canada Emergency Business Account?


On March 27, 2020 the federal government announced additional measures to support businesses and not-for-profits. VPCU has been consulting with the government on these measures, designing them specifically to help small and medium sized employers with their most pressing needs and position our economy to recover.


The Canada Emergency Business Account details are as follows:

  • A $40,000 interest-free (until December 31, 2022), government guaranteed loan to help you pay for operating costs that you’re not able to defer as a result of COVID 19.
  • $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 is not repaid by December 31, 2022, it will be extended for an additional 3-year term bearing an interest rate of 5% per annum.
  • Loan can be repaid between December 1, 2022 to December 31, 2022.
  • All CEBA loan applications must be submitted to VPCU by October 31, 2020. 

*UPDATE AS OF JULY 24, 2020*
The updated CEBA 3.0 Program has now been activated. ​Members may now submit their applications once again to VPCU. Please review below for more details.

What is the eligibility for CEBA?
(Updated requirements as of July 24th, 2020)

We have listed some of the eligibility criteria below, per the Government of Canada’s requirements. For a full list of eligibility criteria, please refer to the CEBA application. 

  1. The Borrower is a Canadian operating business in operation as of March 1, 2020.
  2. The Borrower has a federal tax registration.
  3. The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000. For applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year:
    • The Borrower has a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return.
    • The Borrower has eligible non-deferrable expenses between Cdn.$40,000 and Cdn.$1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.
  4. The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
  5. The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
  6. The Borrower acknowledges its intention to continue to operate its business or to resume operations.
  7. The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.


I have accounts at multiple financial institutions. How do I determine where to apply?

Your business’ primary financial institution is the one where your business does the majority of its day-to-day banking, including employee payroll, supplier payments, and collection of receivables using a VPCU Business Operating Account. If VPCU is not where your business conducts its day-to-day banking, please apply through the financial institution that holds your primary Business Operating Account.


Are any Borrowers excluded from the CEBA?

Per the requirements of the Program, as set out by the Government of Canada, the Borrower confirms that:

  1. It is not a government organization or body, or an entity wholly owned by a government organization or body;
  2. It is not a non-profit organization, registered charity, union, or a fraternal benefit society or order, or an entity owned by such an organization, unless the entity is actively carrying on a business in Canada (including a related business in the case of a registered charity) that earns revenue from the regular supply of property/goods or services;
  3. It is not an entity owned by any Federal Member of Parliament or Senator;
  4. It does not promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age, or mental or physical disability, contrary to applicable laws.

The federal government has announced a number of relief measures to provide Canadians with support in addition to the CEBA program. Further information is available at the Government of Canada’s COVID-19 Economic Response Plan Site.


What do I need to apply?

Locate your 2019 T4 Summary of Remuneration Paid statement. You can also contact the Canada Revenue Agency to have them re-issue your 2019 statement. If you haven’t submitted a T4 summary you would be ineligible for this program.

When and How can I apply?

To ensure fair and efficient access to all eligible VPCU business members, all applications must be submitted by filling out our CEBA loan form. The form can be downloaded to your computer by CLICKING HERE. Once you've filled out your form please save it to your computer first, then email it to us at In addition, please email/mail/fax us two pieces of identification as well. Depending on the business account type, we may need one or two of the business owners or directors to sign off on the CEBA application form and provide the identification requirements. Once we have received these items, we will prepare some documentation for you to sign via our Docusign e-signature service. 

Next, please complete the required business tax documentation filing by going to the website link below. You will need your CRA Business Login ID to register accordingly and you will be asked to upload your business tax documents. If you have any question as to which documents are required to be uploaded, please contact CEBA Program Hotline at 1-888-324-4201. Once the documentation has been uploaded and the registration process has been completed, please email to advise accordingly. 

Lastly, please ensure your B.C. Corporate Registry filings are up to date. Company accountants are typically tasked with this filing on behalf of the company on an annual basis. The website to file the annual registry filings is listed below:

Who do I contact if I do not qualify for the loan or if I am declined?

VPCU is administering the Canada Emergency Business Account loan program on behalf of the Federal Government. If you have questions about your organization’s eligibility based on their qualification criteria, please visit the Federal Government’s support Site.


Loan details

How long will it take for the funds to show up in my account?

Your application will be reviewed for eligibility and submitted to the Federal Government for funding. Upon approval, you’ll receive a confirmation email from VPCU, and the $40,000 loan will be deposited into your existing VPCU Business Operating Account. The federal government has advised that funding is estimated to occur between 10 to 15 business days after VPCU has verified and submitted all the pertinent documents through the CEBA loan application portal. 


What interest rate will I pay on the loan?

The $40,000 loan is interest-free during the deferral period. A quarter of the loan ($10,000) is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022. If the loan cannot be repaid by December 31, 2022, it will be converted into a 3-year term loan at an interest rate of 5.00%.


When will I start having to repay the loan?

A quarter of the loan ($10,000) is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022. After this date, the loan can be converted into a 3-year term loan charging an interest rate of 5%. Your first scheduled monthly payment would be due by January 31, 2023.


What will my loan payments be?

The loan is interest-free until December 31, 2022. Furthermore, no principal repayments are required during this period (unless you are seeking to repay 75% to qualify for the 25% forgiveness feature). 

If you choose to extend the loan beyond this date, interest of 5.00% applies during the extension period. We will provide you with more information on interest payments during the extension period once the program is in place. For the purposes of budgeting, a $40,000 loan at a fixed rate of 5% would result in a monthly loan payment of approximately $1200. 


Financial assistance options

My business needs more than what is available through the Canada Emergency Business Account. What are my other options?

If your business is experiencing hardship due to COVID-19, you may be eligible to qualify for additional relief measures. On a case-by-case basis, we will work with our members to find solutions to help address financial hardships caused by COVID-19. To find out more please reach out to your VPCU loans department via email at or phone us at 604 683 2434.


For additional help from B.C. Business Covid 19 Support Services please visit their official webpage by clicking here!