New eligibility criteria
As of June 26, 2020, we have added to our form the new eligibility criteria announced by the federal government for the Canada Emergency Business Account.
To prepare for your application, please consult our Frequently Asked Questions.
in emergency loans
until December 31, 2022
exemption upon repayment, conditions apply
by the government
To address the challenges of COVID-19, the Canadian government has established an emergency account for businesses. This program allows small and medium-sized businesses (SMEs) and non-profit organizations (NPOs) to apply for a loan, interest-free until December 31, 2022.
Meeting the criteria
This loan is intended for SMEs and NPOs that paid $0 or less than $1,500,000 in salaries in 2019.
Already a Business client
Already have an active Business Current Account in Canadian dollars with National Bank on or before March 1, 2020.
Apply for one loan only
Only apply through National Bank if it’s your business’s main financial institution.
Processing your request
Our experts will verify if your application meets the criteria required by the government.
Accepted? Receive the loan
If your application is accepted, the loan amount will be deposited into the Business Current Account listed in your application.
How does the emergency business loan work?
The emergency loan for National Bank business clients amounts to $40,000 (fixed amount). Processing your application can take between 10 and 15 business days (if the application is completed in accordance with the eligibility criteria issued by the federal government). If your application is accepted, the funds will be deposited into the business account listed in your application and will be available immediately.
If you repay $30,000 by December 31, 2022:
You do not have to pay interest
You will be exempted from paying the remaining $10,000
On January 1, 2023:
For the repayment of the loan, no payment will be possible before January 1, 2021.
What are the eligibility criteria?
The Canada Emergency Business Account is intended for small and medium-sized businesses and non-profit organizations.
To be eligible, the federal government has imposed the following conditions on businesses:
Important! After submitting your application using the form available on this page, you must submit your supporting documents on the government's website: https://application-demande.ceba-cuec.ca. There you will find the procedure and the official list of eligible expenses.
To apply for the emergency loan through National Bank, your business must also:
Once your application has been completed:
The Government of Canada will assess application information submitted via financial institutions together with the supporting documentation and information provided, if applicable. If approved by the federal government, National Bank will provide the funds into your business current account.
Note: National Bank does not have information regarding specific inputs or uploaded documents and does not have authority to grant exceptions on any declined applications. Applications are assessed by the federal government, and no formal appeal process is available.
Can I apply for a loan amount other than $40,000?
No, the amount of the National Bank emergency business loan is set at $40,000.
Will I be able to use the loan as I see fit?
The emergency loan must only be used to cover operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, property tax and regularly scheduled debt service.
The loan may not be used to repay or refinance a payment, or for expenses such as existing debt or to pay dividends, nor may it be used for distributions purposes or to increase management compensation.
If I get this emergency loan, can I also benefit from other available support measures?
To qualify for the emergency loan, your business must not have used the Canada Emergency Business Account (CEBA) or the Aboriginal SME Initiative in response to COVID-19, nor seek assistance from any other financial institution for these same programs.
However, you can get additional assistance from other programs available to businesses, provided you meet their eligibility criteria.
How long does it take to process an application?
Once you have applied through the online form from our website, upload all necessary supporting documents (if you paid $0 or $20,000 or less in total salaries for 2019), and if pre-funding eligibility validation is successful, you should expect to receive funding within 10 to 15 business days.
Your application and supporting documentation must be properly completed and submitted to start the pre-funding eligibility validation process.
I run a sole proprietorship with a personal chequing account. Can I still apply?
No, you are not eligible for the emergency business loan because one of the conditions is that you must have an active business account open on or before March 1, 2020.
However, the Canadian government has announced measures to help individual sole proprietors. For more information, see Canada’s COVID-19 Economic Response Plan.
How do I justify my eligible expenses to the government? (Applicable only if your business paid no salaries or $20,000 or less in salaries in 2019.)
Once you have submitted your application for an emergency loan using our form, go to the government website to find out the procedure and whether or not your expenses are eligible and the list of excluded benefits. You must submit the required documents before September 30, 2020. However, consider that the earlier your documents are filed, the faster your application will be processed.
Make sure you have:
Filing of documents on the government website is mandatory for your request to be processed.
I have benefited from other assistance programs. Do I have to deduct them from my eligible expenses?
Yes, including the following Government of Canada COVID response programs:
The grants you will have received will have to be deducted from your eligible expenses and after this calculation you will have to arrive at an amount of more than $40,000 and less than $1,500,000 in eligible expenses.
The official list of excluded benefits can be found on the government's website. Please read it so that you are prepared: https://application-demande.ceba-cuec.ca/.
What are eligible non-deferrable expenses?
Eligible non-deferrable expenses may include, for example, the following:
The official list of eligible non-deferrable expenses can be found on the government's website. Please read it so that you are prepared: https://application-demande.ceba-cuec.ca/.
I operate an incorporated business as a partnership. Are there any specific criteria I need to meet?
For incorporated businesses, the person applying for the emergency loan must be a legally authorized partner. The name of the partner will be used for identity confirmation purposes with the government.
When asked about income (in option of $0 or $20,000 or less in salaries paid in 2019), the applicant will be required to indicate the business’s reported income.
If I’m applying with the payroll option greater than $20,000 and less than $1,500,000, what do I do if I have more than one Canada Revenue Agency Payroll Program Account?
You should add all 2019 T4SUM statements together and compare that total amount against the CEBA eligible payroll range, which is a payroll amount greater than $20,000 and less than $1,500,000.
For example, a business with the following two payroll numbers would have a total payroll amount of $100,000, which is within the eligible range:
How do I know which bank is my primary financial institution?
If you have accounts with more than one financial institution:
Your business’s main financial institution is the one with which you carry out most of your daily transactions. These include paying your employees, making payments to suppliers, collecting accounts receivable, and other day-to-day cash management transactions.
If you have several accounts with National Bank:
You must use an active Business Current Account. For example, you cannot request the that funds be deposited into a savings or trust account.
If National Bank is your primary financial institution and you hold several eligible accounts with us, you can choose the one you prefer when filling out the application.
Can I apply for an emergency loan if I run my business out of a Business Savings Account?
Businesses which choose to do their banking through a business savings account are not eligible for the CEBA program.
Only business current accounts opened on or prior to March 1, 2020, and not in arrears on existing borrowing facilities, if applicable, with National Bank by 90 days or more as at March 1, 2020 are eligible for the CEBA program.
What if I run more than one business?
Each qualifying business must have a unique 9-digit Canada Revenue Agency Business Number (BN). Each qualifying business is limited to one emergency loan.
Who is the lender, the Canadian government or National Bank?
In response to the economic impact of COVID-19, the Canadian government established the Canada Emergency Business Account Program to provide interest-free loans of $40,000 for small and medium-sized businesses and non-profit organizations.
National Bank and several other financial institutions are authorized to implement this program, in cooperation with Export Development Canada.
By requesting an emergency business loan of $40,000 through our website, you are borrowing from National Bank, but supported by the government.
Visit the Canadian government website for more information.
How do I apply for an emergency business loan?
What information will I need to provide in my application?
You will need:
To complete the application (if you paid $0 or $20,000 or less in salaries), you will also need:
What is a T4 Summary, T2 or T1? How do I obtain these documents?
These are the tax documents by which your business reports to the Canada Revenue Agency. They comprise of the details of your employees’ remuneration during a calendar year including income, contributions, and deductions.
If you cannot find these documents for the 2019 calendar year, contact your accountant, the person who filed your business tax return, or the Canada Revenue Agency to retrieve a copy.
If I need consent from several people in my business to apply for a loan, how do I proceed?
We accept only one signatory per application. If your business requires the consent of more than one administrator, we recommend that you have them approve a resolution that will allow only one signatory. This way, you can complete the application and provide the consent to the terms and conditions of the loan on behalf of the business.
For partnerships, the request must be made by one of the partners.
My application is accepted. How can I be sure that the funds have been deposited into my account?
My application for an emergency loan has been accepted and the amount has been deposited into the business account. When will I receive the loan documents?
We will send statements on a quarterly basis, until the loan is paid, to businesses that have been accepted for the Canada Emergency Business Account (CEBA) through National Bank.
The first time you receive your documents, it will include:
For businesses that will have obtained the CEBA loan by June 26, the first statement will be sent during the month of July 2020. For businesses that will have obtained the CEBA loan after June 26, the first statement will be sent during the month of October.
It’s important to remember that you consented to the government attestation and terms and conditions of the Canada Emergency Business Account when you submitted your application. The business has, therefore, undertaken to respect the terms and conditions of the loan.
My application was declined. If I apply for a loan under $40,000 is there a better chance I get it?
No, you cannot apply for an amount other than $40,000 for the emergency business loan. The amount would not affect the eligibility criteria.
My application was declined. What can I do?
If your application is declined, it means your business does not meet the program’s eligibility criteria and cannot benefit from this program.
Note: National Bank does not have authority to grant exceptions on any declined applications. Applications are assessed by the federal government, and no formal appeal process is available.
Have questions about your application? Write to us at the email address listed in the acknowledgement email.