The link to Manulife Bank`s CEBA program is terminated. You need one to download the ZOOM app instead. The appropriate link is: www.manulifebank.ca/personal-banking/plan-and-learn/news/ceba-loans-for-small-businesses.html The new CEBA requirements also mention the 2018 and 2019 fiscal years for expenditure. Does this mean that I would qualify if my expenses were over $US 40,000, if I combined the expenses I had for the years 2018 and 2019? You can choose which one fits your style (deposit in account vs VISA). Another factor to consider is that if you have an overdraft or line of credit in progress, the money can be applied to it before you have access to it. Create a prioritized list of your undeferred operating costs. This will help you figure out how to distribute your loan funds. They should use these funds to cover significant expenses that are subject to fees or to pay in advance expenses with rebates or advance discounts. Smaller, less urgent fees can be covered by free cash flow or a business credit card.
A credit card gives you some flexibility as you have an extra 30 days to pay for your purchases. Before you start paying your expenses with your CEBA funds, you should consider your company`s cash flow. Do you use fast processing methods such as credit cards to retrieve payments from customers? Could a discount or incentive encourage customers to make more advances over long periods of time rather than small payments? You should take all appropriate steps to determine your cash inflows before Immersing yourself in your CEBA loan. Part of the ceba certificate is that she must cover the salary and other fixed expenses. It also states that the loan is not used to pay dividends or distributions. In addition, it cannot be used to increase management compensation. What do you think of the phrase “to cover their operating costs during a period when their income has been temporarily reduced”. Does this imply a reduction in income? For those who only use dividends or $<$20K/year, you must also have filed a business tax return for 2018 or 2019 and have non-deferrable operating expenses (like rent, incidentals, etc.) between $40K and $1.5M per year. You can use forgiveness as soon as your CEBA loan is allowed to repay: others can rationalize it as money given to everyone, and anyone who gets income will pay it in the future.
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