Canada Emergency Business Account

What is the Canada Emergency Business Account?

CEBA provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of COVID-19.

As per the requirements of the program set out by the Government of Canada, you must agree to use the funds from this loan to pay for operating costs that cannot be deferred such as payroll, rent, utilities, insurance and property tax. They may not be used to fund any payments or expenses such as prepayment/refinancing of existing debts, payments of dividends, or increases in management compensation.

Qualification Criteria

Businesses ("the Borrower") will be eligible to apply for this loan if it meets the following criteria:

  • The Borrower is a Canadian business in operation as of March 1, 2020, and has a federal tax registration.
  • The Borrower’s total employment income paid in the 2019 calendar year was between $20,000 and $1,500,000.
  • The Borrower has an active business chequing/operating account with SPARK The Energy Credit Union, which was opened on or prior to March 1, 2020 and was not in arrears on any existing loans, by 90 days or more as at March 1, 2020.
  • The Borrower has not previously used the CEBA Program ("the Program") and will not apply for support under the Program at any other financial institution.
  • The Borrower acknowledges its intention to continue to operate its business or to resume operations.

Loan Details

  • The loan will be funded as a $40,000 term loan to approved businesses, at 0% interest.
  • Repaying $30,000 of the loan on or before December 31, 2022 will result in loan forgiveness of 25% ($10,000).
  • The loan is interest-free until December 31, 2022 and no principal repayments are required during this period, unless the Borrower is seeking to repay 75% of the loan to qualify for the 25% forgiveness.
  • If a Borrower cannot repay the loan by December 31, 2022, it can be converted into a 3-year term loan at an interest rate of 5%.
  • The full balance and all accrued interest must be paid no later than December 31, 2025.
  • While no principal repayments are required until December 31, 2025, it is always good practice to make steady payments to match the incoming cash flows from business operations.

Application Process

If you wish to apply for a CEBA loan, please e-mail your request to

Your e-mail must include the following information:

  • Legal business name and "operating as" name, if applicable
  • Signing authority name(s), phone number(s), and e-mail address(es)

Upon receipt of your e-mail request you will be contacted by a SPARK team member. Please have the following information ready:

  • CRA Business Number (BN 15 characters - 9 digits, 2 alpha, 4 digits)
  • 2019 T4 SUM (Box 14 of 2019 T4 SUM)

Once we have all of the required information, you will receive an e-mail from us with a CEBA Schedule A - Attestation and CEBA Term Loan Agreement. You will sign the documents electronically. Once your loan application has been approved and submitted, funds will be deposited into your account within 1-2 business days.