This program is for loans to certain qualified small businesses (either incorporated or as a proprietorship) and non-profit organizations that have a business number. The CEBA is:

1. Interest-free loan of up to $40,000 for qualifying small businesses and non-profits.
2. If the full $40,000 is borrowed, $10,000 of the loan (25% of the base loan) is eligible for forgiveness if $30,000 (or 75% of the balance) is fully repaid on or before December 31, 2022. If not repaid at that time, 5% interest starts but there are no minimal principal payments required. The remaining balance must be paid by December 31, 2025.
3. No principal payments until December 31, 2022.
4. If you have payroll from $0 to $20,000 and are incorporated, you need to have Active Business Income in your last corporate T2 tax return (see below for details).
5. If you have payroll of $20,000 to $1,499,999, then you need to provide certain payroll information (see below for details).

Eligibility for Businesses with No Payroll or Payroll Less than or Equal to $20,000 in 2019

• The person applying has the ability and authority to bind the organization.
• Your organization is a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”) that was in operation on March 1, 2020.
• Your total employment income paid in the 2019 calendar year was less than or equal to $20,000. You will need to have a federal tax registration and provide:
  • Your Canada Revenue Agency Business Number (BN) (9 digits)
  • Your business income as reported in your 2019 tax return (or for 2018 if 2019 taxes have not been submitted)
  • If you are a corporation, the value reported on line 400 of your latest T2 which is an amount for Active Business Income (ABI) eligible for the Small Business Deduction (SBD). If there is no ABI eligible for the SBD, the corporation is not eligible.
  • If you are not incorporated, the following values reported in your T1 return for 2019 (or for 2018 is 2019 has not yet been submitted):

T1 Return: Self-Employment Income	Complete if latest T1 is 2018	Complete if latest T1 is 2019
Net business income	135	13500
Net Professional income	137	13700
Net Commission income	139	13900
Net Farming income	141	14100
Net Fishing income	143	14300

• • Your total Eligible Non-Deferrable Expenses (as defined below) that you were obligated to pay in 2020 (as of March 1, 2020).
  • The total of your Excluded Expenses, defined as expenses for which you have received or are expecting to receive by December 31, 2020, support or subsidies under other COVID 19 programs

• Your Eligible Non-Deferrable Expenses MINUS your Excluded Benefits is more than $40,000 and less than $1,500,000.
• You must upload documents evidencing greater than $40,000 of Eligible Non-Deferrable Expenses (net of Excluded Expenses) to a Government of Canada website prior to being approved for CEBA
• Per the requirements of the program, as set out by the Government of Canada, you will agree to use funds from this loan to pay for the following Eligible Non-Deferrable Expenses incurred or to be incurred in 2020:
  1. wages and other employment expenses to independent (arm’s length) third parties
  2. rent or lease payments for real estate used for business purposes
  3. rent or lease payments for capital equipment used for business purposes
  4. payments incurred for insurance related costs
  5. payments incurred for property taxes
  6. payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet
  7. payments for regularly scheduled debt service
  8. 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; and
  9. any other expense in a category other than the above as may be indicated by the Government of Canada website from time to time as being an Eligible Non-Deferrable Expense for the purpose of the Program.

• You have an active business chequing/operating account at a participating bank, which is your primary financial institution.  Your account was opened prior to March 1, 2020, and was not in arrears on existing borrowing products, if applicable, with the participating bank by 90 days or more as of March 1, 2020.
• You have not previously received CEBA and are not applying for this program at any other financial institution.  You understand that applying for support under the Program at more than one financial institution may result in ineligibility under the Program, default under the facility in respect of which this attestation is being provided, prosecution or other enforcement measures available at law or otherwise.
• You agree to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
• You intend to continue to operate your business or to resume operations.
• You authorize Export Development Canada, as your representative with the Canada Revenue Agency, to access any required payroll information for the purpose of verifying eligibility.

Eligibility for Businesses with Payroll Expenses greater than $20,000 and less than $1,500,000 in 2019

• The person applying has the ability and authority to bind the organization.
• Your organization is a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”) that was in operation on March 1, 2020.
• Your organization’s payroll paid in the 2019 calendar year was greater than $20,000 and less than $1,500,000 (updated payroll expense requirements effective April 17, 2020). You will need to have a federal tax registration and provide:
  • Your Canada Revenue Agency Business Payroll Number (BN) (15 digits), as reported at the top of the 2019 T4 Summary of Remuneration Paid (T4SUM)
  • Your total employment income paid reported on all employee T4 slips for 2019.  For customers who also pay employees tax-exempt employment income under the Indian Act, all employment income reported in Box 71 of T4 statements issued to the organization’s employees for 2019 must also be included in the total
  • Information to demonstrate the above when requested upon audit by the Government of Canada
• Per the requirements of the program, as set out by the Government of Canada, you will agree to use funds from this loan to pay for the following Eligible Non-Deferrable Expenses incurred or to be incurred in 2020:
  1. wages and other employment expenses to independent (arm’s length) third parties
  2. rent or lease payments for real estate used for business purposes
  3. rent or lease payments for capital equipment used for business purposes
  4. payments incurred for insurance related costs
  5. payments incurred for property taxes
  6. payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet
  7. payments for regularly scheduled debt service
  8. 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; and
  9. any other expense in a category other than the above as may be indicated by the Government of Canada website from time to time as being an Eligible Non-Deferrable Expense for the purpose of the Program.
• You have an active business chequing/operating account at a participating bank, which is your primary financial institution.  Your account was opened prior to March 1, 2020, and was not in arrears on existing borrowing products, if applicable, with the participating bank by 90 days or more as of March 1, 2020.
• You have not previously received CEBA and are not applying for this program at any other financial institution.  You understand that applying for support under the Program at more than one financial institution may result in ineligibility under the Program, default under the facility in respect of which this attestation is being provided, prosecution or other enforcement measures available at law or otherwise.
• You agree to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
• You intend to continue to operate your business or to resume operations.
• You authorize Export Development Canada, as your representative with the Canada Revenue Agency, to access any required payroll information for the purpose of verifying eligibility.

ANDERSONBRONSCH TEAM
ROMANOVSKY & ASSOCIATES LLP
CHARTERED PROFESSIONAL ACCOUNTANTS

Keith M.J. Anderson* BCom, CPA, CA-IT, CITP

Chartered Professional Accountant and Chartered Accountant (Canada)
CA-Designated Information Technology Specialist (Canada)
Certified Information Technology Professional (US)
* Professional Corporation

Web: www.AlbertaCPA.com
Email: keith@albertacpa.com
Phone: 780 447 5830
Fax: 780 451 6291
Cell: 780 906 2223

Disclaimer:
This information is provided for general information purposes only. As legislation changes frequently, certain information may be out of date periodically. The complexity of the Law and the varied circumstances of each taxpayer dictates that the information provided may not be suitable in all circumstances. Readers must not rely on any information provided without first obtaining direct and competent professional advice. The information provided is not intended to replace or serve as substitute for any audit, advisory, tax or other professional advice, consultation or service. Therefore, the information is provided “as is” without warranties of any kind, express or implied, including accuracy, timeliness and completeness. In no event shall and associated parties to this information be liable for any direct, indirect, incidental, special, exemplary, punitive, consequential or other damages whatsoever.