Update following the federal government’s announcement of January 12, 2022: The deadline for repayment of loans loans has been extended to December 31, 2023.
All CUEC applicants have until June 30, 2021 to apply for the $60,000 loan or the $20,000 increase for those who received the $40,000 loan.
Since April 2020, financial institutions have been offering loans of up to $40,000 to small businesses and non-profit organizations, in collaboration with Export Development Canada (EDC). As of December 4, 2020, CUEC-eligible business loans have increased from $40,000 to $60,000. These loans will be interest-free until December 31, 2023.
If you’re one of the applicants who has already received a $40,000 loan, you can apply for the program enhancement, which provides an additional $20,000 in financing for eligible businesses. To qualify for the $20,000 bonus, you must attest to the impact of the COVID-19 pandemic on your business.
The program is available to small businesses with payrolls between $20,000 and $1,500,000 in 2019.
Small businesses (payroll under $20,000)
The program is also available to small businesses with a payroll of less than $20,000, provided they meet the following criteria:
- Have a business operating account at a participating financial institution;
- Have a Canada Revenue Agency business number and have filed a tax return in 2018 or 2019;
- Eligible non-deferrable expenses totalling between $40,000 and $1,500,000 incurred or planned between January 1 and December 31, 2020 (eligible expenses include rent, property taxes, service charges and insurance).
It should also be noted that repayment of the loan balance by December 31, 2023 will result in a write-off of 25% of the first $40,000 of the loan and 50% of the $20,000 increase (to a maximum of $20,000). On the other hand, if the loan is not repaid by December 31, 2023, interest will start to be charged on the balance.
Have you read our summary of the 2022-2023 federal budget? It could also have an impact on your business.
How to apply
Small businesses and non-profit organizations must contact their financial institution in order to benefit from this measure or mark-up. Once the application has been submitted, supporting documents confirming eligibility must be transmitted to the government via a secure link received from the financial institution.
The application and supporting documents had to be submitted by June 30, 2021 for the application to be eligible.
