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.


What is the eligibility for CEBA?

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 as reported in Box 14 of the Borrower’s 2019 T4SUM.
  4. The funds from the loan are to be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
  5. The Borrower has an active business chequing/operating account with a primary Financial Institution (FI). This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the FI by 90 days or more as at March 1, 2020.
  6. The Borrower has not previously used the Program and will not apply for support under the Program at more than one financial institution.
  7. Per the requirements of the Program, as set out by the Government of Canada, the Borrower:
  • Is not a government organization or body, or an entity owned by a government organization or body;
  • is not a union, charitable, religious or fraternal organization or entity owned by such an organization. Or if it is, it is a registered T2 or T3010 corporation that generates a portion of its revenue from the sales of goods or services;
  • is not an entity owned by individual(s) holding political office; and
  • it does not promote violence, incite hatred or discriminate on the basis of race, national or ethnic origin, color, religion, sex, age or mental or physical disability.


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.


I run my sole proprietor business using a VPCU personal account. Can I still apply?

No. The Canada Emergency Business Account is available only to business clients with employee payrolls between $50,000 and $1 million in 2019. Use of a personal VPCU account is not permitted when operating in the name of a business. The federal government has announced a number of relief measures to support individuals as sole proprietors. 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. 

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. We estimate that it will take approximately one week to process the loan funding once all documents have been verified and submitted.


What interest rate will I pay on the loan?

The $40,000 loan is interest-free. 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 can 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!