COVID-19 Resources for Businesses

Canada Emergency Business Account (CEBA)

Small business owners are among those hardest hit by COVID-19. We’re here to help you get through this with financial advice, flexibility and assistance in accessing federal relief loans.

Qualifying business members can get an interest-free government-guaranteed loan of up to $40,000 to help ease the financial strain incurred as a result of COVID-19.

The Government of Canada recently announced changes to the Canada Emergency Business Account that allow the following businesses to apply for the CEBA program:

  • Owner-operated businesses that do not have a payroll
  • Sole proprietors receiving income directly, and
  • Family-owned corporations that pay dividends rather than payroll

There are now two types of CEBA applications, please select the stream that best describes your business:

  1. Payroll Stream - The Borrower’s total employment income paid to employees in the 2019 calendar year was between $20,000 and $1,500,000.
  2. Non-Deferrable Expenses Stream - For applicants with $20,000 or less in total employment income paid in the 2018 or 2019 calendar year.

Here’s what you'll need to apply:

  • T4 Summary – this shows your 2019 payroll expense and your CRA Employer account number.
  • Access to Online Banking - make sure you are able to log into your online banking account. If you have not yet signed up for online banking or are having issues logging in, please call our Member Service Centre at 1.800.665.5728, select option 4, then option 2.
  • Review the FAQs in the CEBA tab below to find out if you meet the qualifying criteria.
  • Businesses applying under the Non-Deferrable Expenses Stream will also require electronic copies of receipts / invoices / agreements.

Click here to apply.

CEBA - Canada Emergency Business Account

What is the CEBA program?

The Government of Canada launched the Canada Emergency Business Account (CEBA) to ensure small businesses have access to the funds they need to get through the current challenges and continue to provide services to their communities. CEBA provides interest-free loans of up to $40,000 to small businesses and not-for-profits, and recently expanded the progam to include owner-operated businesses that do not have a payroll, sole proprietors receiving income directly and family owned corporations that pay dividends rather than payroll.

Business owners can apply for support from the Canada Emergency Business Account through their primary financial institution.

How do I apply for the CEBA program through Kootenay Savings? Expand/Collapse

If you are a Kootenay Savings business member that has been financially impacted by COVID-19 and are in need of emergency support, we are here to help. Simply log in to online banking to apply.

NOTE: You must be signed up for online banking to apply for the CEBA program. If you haven’t yet signed up for online banking (or you’re having problems getting into your account through online banking) please call our Member Service Centre for assistance at 1-800-665-5728 and select option 4 then option 2.

If you have questions about the CEBA program or your submitted application call our Commercial Department at 1-800-665-5728, select option 5 and follow the prompts.

What is the qualifying criteria for the CEBA program? Expand/Collapse

There are now two types of CEBA applications, select the stream that best describes your business:

  1. Payroll Stream - The Borrower’s total employment income paid to employees in the 2019 calendar year was between $20,000 and $1,500,000.
  2. Non-Deferrable Expenses Stream - For applicants with $20,000 or less in total employment income paid in the 2018 or 2019 calendar year.

Conditions specific to the business type are:

  • Type A The business has filed a 2019 tax return
  • Type B The business has filed a 2018 or 2019 tax return
  • Type B The borrower has eligible non-deferrable expenses between $40,000 and $1,500,000 incurred or to be incurred in 2020

To apply in either stream the following criteria must be met:

  • The business chequing (operating) account is with Kootenay Savings, and was opened before March 1, 2020 and loans were not in arrears by 90 days or more as of March 1, 2020
  • The business has not previously used the CEBA program and will not apply for support under the program at any other financial institution
  • The business acknowledges its intention to continue to operate its business or to resume operations
  • The borrower agrees that the loan funds will be used to pay for operating expenses that cannot be deferred, such as payroll, rent, utilities, insurance, debt payments and property tax
    • Expenses will be subject to verification and audit by the Government of Canada

What are the details of the loan? Expand/Collapse

The $40,000 loan is interest-free and no principle payments are required until December 31, 2022. Repaying the balance of the loan between November 1, 2022 and December 31, 2022 (the allowed prepayment eligibility period), will result in loan forgiveness of 25% (up to $10,000).

What are the payment terms? Expand/Collapse

No interest or principal payments are required until December 31, 2022.

On January 1, 2023 – if the business member has not repaid at least 75% of the total loan, the outstanding loan balance will be converted to monthly interest-only payments at a fixed rate of 5.00%. 

No principal payments will be required. Principal payments are open and at the member’s discretion. The outstanding principal balance of all remaining loans under the program, plus any accrued interest, is due and payable in full on December 31, 2025.

How is the loan distributed? Expand/Collapse

The loan will be deposited into your account after is approved by the federal government.

How long will it take for the funds to be deposited to my account? Expand/Collapse

Your application will be reviewed for eligibility and submitted to the Federal Government for approval and funding. Once the loan application docs have been signed with your KS Commercial Lender, we expect it to take approximately 10 business days for the loan to be funded. 

What can I use the funds for? Expand/Collapse

Funds must be used to fund working capital needs and may not be held in a savings account or term deposit.

The loan is to be used to fund non-deferrable expenses, including payroll, rent, lease payments, property taxes and other costs that the business incurs in order to remain in operation.

Can I make payments on the loan or pay it off earlier than required? Expand/Collapse

Payments to the loan (in whole or in part) cannot be made until November 1, 2022. 

Further, a business may only apply once for funds under the CEBA program, they are not able to apply for the CEBA a second time.

The 0.00% interest period on loans under the CEBA program is available until December 31, 2022 and there are no costs to the member in order to hold the funds until that date.

My business is closed due to COVID-19. Can I still apply? Expand/Collapse

Yes, provided that your business was active and open on March 1, 2020 and plans to reopen. If your business is currently closed, you must plan to reopen as soon as possible with the help of the funds from the CEBA program.

I only need $20,000 at this time. What if I decide at a later date that I need more money from the CEBA program? Expand/Collapse

Only one application for the CEBA program is permitted.

I would like to close out my Kootenay Savings account and pay out my CEBA Loan. Expand/Collapse

Unfortunately we cannot pay out a CEBA loan until November 1, 2022. We must leave your share account, chequing account and CEBA loan active until that time.

What documentation do you require from me to prove my business paid between $20,000 and $1.5 million in payroll in 2019? Expand/Collapse

A copy of your T4 summary is required. The T4 summary form indicates your payroll expense for the 2019 calendar year and your employer account number with Canada Revenue Agency.

I am a sole proprietor and only have a personal chequing account. Can I still apply? Expand/Collapse

No. The Canada Emergency Business Account is only available to business with an open business operating account on March 1, 2020.

I already have a line of credit through Kootenay Savings, can I apply for the CEBA program? Expand/Collapse

Yes. Whether or not you have an existing operating Line of Credit is immaterial to your eligibility for the CEBA loan program.

I applied for the Kootenay Savings financial relief offerings. Can I also apply for the CEBA program through Kootenay Savings? Expand/Collapse

Yes, provided your business meets the eligibity requirements set out in the CEBA program.

I have multiple businesses. Can I enroll each business for a CEBA loan? Expand/Collapse

Yes, each business entity may enroll for a CEBA loan provided that:

  • They are separate entities and Kootenay Savings (KS) is their primary financial institution.
  • Each business must have an active business account that was opened with KS on, or before March 1, 2020.
  • Each business must meet the eligibility criteria.
  • The businesses must be independent from one another and have their own CRA Payroll or Business Number. They must have separate operations, separate sources of revenue and cannot be economically dependent on one another.

KSCU Relief Programs

If you don't qualify for CEBA, we can help.

We're dedicated to working with members to provide flexible solutions through hardships caused by these unusual circumstances including:

  • Payment suspensions and alterations up to 6 months
  • "Quick Loans" - Personal loans up to $10,000 with deferred payments up to 6 months
  • "Quick LOCs" - Business Lines of Credit up to $25,000 with interest only payments

Business members, please call 1.800.665.5728, select option 5 and follow the prompts to speak with a commercial lender. All other members please select option 4 to speak with a Kootenay Savings representative.

Our goal is to provide peace of mind knowing you can continue to support yourself and your family through these difficult times.

Other Support Programs

In addition to the Government’s Canada Emergency Business Account program and Kootenay Savings’ Quick Line of Credit and Payment Suspension programs, there are many other relief programs available to support businesses impacted by COVID-19. 

To view available resources and up-to-date information, please click the links below:

  • COVID-19 Supports for Businesses – BC Government site - for resources and an extensive list of available support programs
  • Support for Business - Government of Canada site - to learn more about available Government support programs and apply (if applicable)