Starting April 9, 2020, owners of small and medium-sized enterprises (SMEs) and managers of non-profit organizations (NPOs) who are National Bank clients will be able to submit their applications online for the Canada Emergency Business Account. This program is guaranteed by the Government of Canada and aims at helping businesses cope with the economic challenges resulting from the COVID-19 crisis. It will be used to grant $40,000 loans that are interest-free until December 31, 2022 to SMEs and NPOs.
The CEBA is a government-guaranteed loan of $40,000, designed to help small business owners meet their immediate cash flow needs:
- 0% interest until December 31, 2022
- No principal payments until December 31, 2022
- Principal repayments can be made voluntarily at any time without fees or penalties
- $10,000 loan forgiveness is available, provided $30,000 is paid back on or before December 31, 2022
- If the balance is not paid by December 31, 2022, the remaining balance will be converted to a 3-year term loan at 5% annual interest, paid monthly, effective January 1, 2023
- The full balance must be repaid by no later than December 31, 2025
To apply for an emergency loan, you must complete the online form, which will be available tomorrow. Here are a few steps to follow before you apply.
1. Check if you are eligible
The Canada Emergency Business Account is for SMEs and NPOs. The conditions of the federal program require that:
- Organizations have paid $50,000 to $1 million in salaries in 2019, as declared on their T4 Summary
- NPOs have submitted a T2 Corporate Income Tax Return for the 2019 tax year
- Registered charities have submitted a T3010 Registered Charity Information Return for the 2019 tax year
Moreover, to submit your emergency loan application to National Bank, please make sure that:
- You have an active business account (business current account) at National Bank, in Canadian dollars, opened no later than March 1, 2020
- The enterprise was not in arrears on existing borrowing facilities, if applicable, with National Bank by 90 days or more as at March 1, 2020
- National Bank is your primary financial institution
2. Have the right information on hand
You will need the following information for your application:
- Your National Bank business account number (indicated at the bottom of your cheques)
- The transit number of your branch (5 digits, indicated at the bottom of your cheques)
- The sum of salaries paid in 2019 (see box 14 of the 2019 T4 Summary for your business)
- Your business number or employer account number (15 characters, see the 2019 T4 Summary for your business)
3. Consult our FAQ
To learn more about how the emergency business loan works, consult our FAQ.
Additional support measures
Some businesses could also already be eligible for the following support measures. We ask that they contact their Account Manager and consult nbc.ca/business where we regularly update information on relief measures and available government programs.
- Export Development Canada’s Business Credit Availability Program (BCAP): This measure is aimed at direct exporters, indirect exporters, and future direct exporters. It allows them to obtain an operating line of credit or cash flow loan of up to $6.25M in CAD, USD or another currency. For more information, go to the Export Development Canada website.
National Bank Insurance Auto | Home: Support measures for retail clients
National Bank Insurance Auto | Home would also like to remind clients who are experiencing financial difficulties that they could be eligible for various relief measures, including:
- Payment deferrals
- Premium adjustments to reflect reduced vehicle use
- Flexibility offered to clients who use their vehicle for certain types of deliveries
- Claims may be submitted online or by phone
Clients must call 1-877-871-7500 to find out if they are eligible for relief measures. Further details are available on National Bank Insurance’s website. Using the Client Centre or app, policyholders can access documentation, start a claim or obtain proof of insurance.
- National Bank – Update on COVID-19
- National Bank Announces New Support Measures and a Special Approach for Seniors
- National Bank Encourages its Clients to Stay Safe and Use Digital Banking Solutions
About National Bank of Canada
With $289 billion in assets as at January 31, 2020, National Bank of Canada, together with its subsidiaries, forms one of Canada’s leading integrated financial groups. It has more than 26,000 employees in knowledge-intensive positions and has been recognized numerous times as a top employer and for its commitment to diversity. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank’s activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.
Learn more about how Canada’s banks are standing by Canadians: cba.ca/canadian-banks-are-standing-by-canadians
- BMO’s COVID-19 business support page.
- Scotiabank: For full eligibility criteria and further details, please visit Scotiabank.com/SmallBusinessRelief for Scotiabank Small Business customers and Scotiabank.com/CommercialRelief for Scotiabank Commercial Banking customers.
- CIBC: Business owners whose primary bank is CIBC may file an application through CIBC Online Banking for Business if they are currently registered to bank online.
- For other banks and credit unions, please visit your online banking website for more information.
About the Canadian Bankers Association
The Canadian Bankers Association is the voice of more than 60 domestic and foreign banks that help drive Canada’s economic growth and prosperity. The CBA advocates for public policies that contribute to a sound, thriving banking system to ensure Canadians can succeed in their financial goals. www.cba.ca.
SOURCE Canadian Bankers Association