Small Business Relief Programs

COVID-19: How East Coast Credit Union is helping small businesses

East Coast Credit Union is offering financial relief solutions to small business members both independently and in conjunction with Provincial and Federal programs. We work with our business members who have been impacted on a case-by-case basis to help identify ways to ease the financial stress associated with COVID-19.

About the financial relief programs East Coast Credit Union offers

Canada Emergency Business Account (CEBA) Expand/Collapse

The Government of Canada recently announced that it will be providing the Canada Emergency Business Account to support Canadian businesses that have been adversely affected by COVID-19. Eligible businesses will receive a $40,000 loan for immediate financial support to cover short term operating expenses, payroll and other non-deferrable expenses which are critical to sustain business continuity.

What is the CEBA Program

  • Up to $40,000 interest-free loan to help you cover operating costs you were not able to defer because of COVID-19.
  • 25% (up to $10,000) of the loan proceeds is eligible for complete forgiveness if loan is repaid on or before December 31, 2022.
  • If the loan cannot be repaid by December 31, 2022 it can be converted into a 3-year loan with a fixed interest rate of 5% per annum.

How does the CEBA loan work?

  • The loan will be funded as a term loan (up to $40,000), 0% interest and no payments until December 31, 2022.
  • No interest will apply until January 1, 2023.
  • Beginning January 1, 2023, interest accrues on the balance of the term loan at a fixed rate of 5% per annum, payable monthly on the last day of the month.
  • If you pay 75% of the balance of the term loan on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven.
  • If you do not repay the 75% of the balance of the term loan on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025.

What’s the eligibility criteria?

As set out by the Government of Canada, your business is eligible if it:

  • Is a Canadian operating business in operation as of March 1, 2020
  • Has a banking or borrowing relationship with the credit union as at March 1, 2020, and the credit union is your primary financial institution;
  • Has a business chequing/operating account with the credit union, which was opened on or before March 1, 2020 and is in good standing;
  • Does not have any loans with the credit union in arrears by 90 days or more as at March 1, 2020;
  • Has a Canada Revenue Agency Business Number, and has filed tax return(s) with Canada Revenue Agency for 2019 and/or 2018;
  • Has not previously received CEBA through the credit union or any other financial institution;
  • Is not a non-profit organization, charity, union, or a fraternal benefit society, unless your organization earns revenue from regularly supplying property, goods and/or services; and
  • Intends to continue operating or to resume operations.
  • Has payroll of between $20,000 and $1,500,000 for the 2019 calendar year

CEBA criteria has now been expanded to include the following;

  • Has eligible non-deferrable expenses in the 2020 calendar year between $40,000 and $1,500,000.
  • Total employment income paid to employees in 2019 was Cdn $20,000 or less or if the Borrower declares no employment income was paid in 2019.                                

Please note: If you cannot locate your T4SUM contact Revenue Canada to have them re-issue your 2019 statement.

If you have further questions, please connect with your Commercial Lending Representative directly.

Note: Please be advised that by clicking on the link below you will be taken to an external site.

Online Application - Apply Now

CEBA Application Expand/Collapse

Before proceeding with your CEBA application and to help avoid delays in processing, please read the following, and reference as needed to complete the application process.

Once you complete the application, you will be redirected to the EDC portal to upload all necessary information to the portal. This Guide and FAQ’s will help you through the process.


Apply Now

Emergency Working Capital Line of Credit Expand/Collapse

East Coast Credit Union is offering business members in good standing who have an existing line of credit with East Coast Credit Union an Emergency Working Capital Line of Credit. This line of credit will instantly increase the credit amount by up to 25% or $10,000.

Eligible business members who do not have an existing line of credit with East Coast Credit Union are able to access an instant line of credit up to $5,000

Am I an eligible business?

  • Business members with existing line of credits need to be in good standing.
  • Business members without an existing line of credit need to be in good standing. Additional documentation may be required to process the loan.

Payment Deferrals Expand/Collapse

East Coast Credit Union is offering eligible business members with mortgages, loans and lines of credit payment deferrals on the principle balance and interest.

Am I an eligible business?

  • The East Coast Credit Union Business Services Team will assess business members on a case by case basis to determine the most suitable solution.
    • Business borrowing members not currently using a Government lending program may be eligible for a deferred principle and interest loan/mortgage payments for up to six-months; deferred interest payments and waiver of loan administration fees on lines of credit for up to six-months.
    • Business borrowing members who have Provincial Loan Guarantee may be eligible for a deferred principle and interest loan/mortgage payments for up to three-months; deferred interest payments and waiver of loan administration fees on lines of credit for up to three-months ending June 30, 2020.
    • Business borrowing members who are using the Canada Small Business Financing Program may be eligible for a deferred principle and interest loan/mortgage payments for up to six-months; deferred interest payments and waiver of loan administration fees on lines of credit for up to six-months.

Business Credit Availability Program Expand/Collapse

The Business Credit Availability Program (BCAP) is offered in conjunction with Export Development Canada. This program was developed to help Canadian businesses obtain financing during COVID-19 with guarantees for loans from $100,000 up to $6,250,000.

When will the loan be available?

  • This is now available. Please contact us for further details by calling 1-866-230-7700 or emailing eastcoast@creditu.ca.

Am I an eligible business?

  • To qualify for the BCAP program, organizations must meet the following criteria:
    • Be a registered and operating Canadian business as of March 1, 2020.
    • Organizations must attest that the fund will be used to sustain operations.
  • Organizations can be current or new members.
  • Organizations do not have to be an exporter.

Business Development Canada (BDC) Co-Lending Program Expand/Collapse

East Coast Credit Union is offering the Co-Lending Program in partnership with BDC.  This program will offer loans from $100,000 up to $6,250,000 with amortizations up to 10 years. Commercial interest rates will apply.

When will the loan be available?

  • We will update with more information once it's available.

Am I an eligible business?

  • To qualify for the Co-Lending program, organizations must meet the following criteria:
    • Be a registered and operating Canadian business as of March 1, 2020.
    • Organizations must attest that the fund will be used to sustain operations.
  • Organizations can be current or new members.
  • Organizations do not have to be an exporter.

How do I apply for the financial relief programs offered?

 

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