TORONTO, April 8, 2020 /CNW/ - Scotiabank announces the
launch of its application process for the Canadian Government's new
Canada Emergency Business Account
(CEBA), effective April
9th, 2020. The application process will be
available via the Scotia mobile banking app and Scotia online
banking for Scotiabank Small Business Banking customers, and
through their respective relationship managers for Scotiabank
Commercial Banking customers.
"As COVID-19 impacts businesses and communities across the
country, Scotiabank will continue to be here for our business
banking customers. We know the stress COVID-19 has caused for many
business owners across Canada,
which is why Scotiabank remains committed to making sure our
business banking customers can access these funds as quickly as
possible," said Dan Rees, Group
Head, Canadian Banking. "The Canada Emergency Business Account will provide
much needed relief for Canadian small businesses to help manage and
sustain their operations through this difficult time."
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
Consistent with program requirements set by the Government of
Canada, customers and clients must
agree to use funds from this line of credit to pay for operating
costs that cannot be deferred, such as payroll, rent, utilities,
insurance, and property tax. Businesses and not-for-profits
will be eligible to apply for this program from Scotiabank if they
have:
- An operating company registered in Canada;
- Annual payroll of between $50,000
and $1,000,000 (based on your 2019
T4SUM Summary of Remuneration Paid); and
- Scotiabank as their primary bank. This means that the business
uses a Scotiabank Business Operating Account (opened on or before
March 1, 2020).
- 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.
Scotiabank businesses and customers may also qualify for a
variety of other support measures and are encouraged to visit
Scotiabank.com for more information.
About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our
purpose: "for every future," we help our customers, their families
and their communities achieve success through a broad range of
advice, products and services, including personal and commercial
banking, wealth management and private banking, corporate and
investment banking, and capital markets. With a team of
approximately 100,000 employees and assets of approximately
$1.2 trillion (as at January 31, 2020), Scotiabank trades on the
Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange
(NYSE: BNS). For more information, please visit
http://www.scotiabank.com and follow us on Twitter
@ScotiabankViews.
SOURCE Scotiabank