Question Period Note: Canada Emergency Business Account (CEBA)

Support provided to businesses through the CEBA and BCAP.

• In April 2020, CEBA was launched by the Government of Canada in collaboration with Canadian financial institutions.

• In addition, Export Development Canada (EDC) is supporting Canadian business by offering loans guarantees available through the BCAP.
• The goal with CEBA, BCAP and other Government of Canada support during COVID-19 has always been to support as many Canadians as possible, and it has rapidly provided support to hundreds of thousands of businesses across the country.
• As of September 29, 2020, a total of 760,000 applicants have been approved for CEBA for a total of $30.42 billion in cumulative funds disbursed. Additional applications are received daily.

On October 2, 2020 the Office of the Parliamentary Budget Officer (PBO) published a report
which summarizes the federal package of COVID-19 liquidity support programs provided through five federal Crown corporations including EDC. The PBO report mentions support provided through the Canada Emergency Business Account (CEBA) administered by EDC but funded by the Canada Account as well as the Business Credit Availibility Program (BCAP) financed through EDC's corporate account.

On April 9, 2020, the Government of Canada launched the Canada Emergency Business Account (CEBA) to ensure that small businesses have access to the capital they need to see them through the current challenges. Business can apply for loans under the CEBA if they meet a minimum threshold for payroll ($20,000) or for eligible expenses ($40,000).

This $55 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits. The CEBA is being made available through more than 230 financial institutions across the country. All applications for assistance under CEBA are administered through these Canadian financial institutions.

Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000) for the borrower.

In addition, Export Development Canada launched the Business Credit Availibility Program (BCAP), a $20 billion loan guarantee program for small and medium sized enterprises. These guarantees cover up to 80% of the principal of new loans to SMEs, to a limit of $6.25 million per SME.

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