We have updates for you on the BC Recovery Benefit, as well as the Canada Emergency Business Account (CEBA).
BC Recovery Benefit
Yesterday, the BC Government issued a release to clarify details surrounding the BC Recovery Benefit. Beginning December 18, 2020, British Columbians will be able to apply for the BC Recovery Benefit. Eligibility criteria are as follows:
- Families with total incomes under $125,000 will qualify for a $1,000 tax-free, one-time benefit. Families earning up to $175,000 will qualify for a reduced benefit amount
- Single-parent families also qualify under these income-tested amounts
- Single people with incomes under $62,500 will qualify for a $500 tax-free, one-time benefit. Single people earning up to $87,500 will qualify for a reduced benefit amount
Additionally, British Columbians receiving income assistance or disability assistance, and low-income seniors receiving the senior’s supplement will receive an additional recovery benefit of $150 per month from January 2021 through March 2021.
To be eligible to receive the one-time, tax-free BC Recovery Benefit, people must:
- be a resident of B.C. on Dec. 18, 2020;
- be at least 19 years old on Dec. 18, 2020;
- have filed a 2019 income tax return;
- have their 2019 income tax notice of assessment, and if applicable, their spouse’s 2019 income tax notice of assessment;
- have their social insurance number;
- have their direct deposit information; and
- have their B.C. driver’s licence.
How to Apply
Once you’ve determined you are eligible to receive the benefit, you can apply via the following routes:
- starting Dec. 18, visiting: gov.bc.ca/recoverybenefit
- starting Dec. 21, agents will be available by phone to assist people who need help applying, including those who do not have internet access.
- starting Dec. 21, phone-based support will be available at 1 833 882-0020 toll-free within North America, Monday to Friday, from 7:30 a.m. to 5 p.m. (Pacific time)
The government also plans to introduce a modified application process in early-2021. The modifications will be aimed to make it easier for persons on disability or income assistance who do not have banking services or tax filing issues to apply and receive benefits as soon as possible.
Here is the link to the BC Government link to the BC Recovery Benefit page.
Canada Emergency Business Account (CEBA) Expansion
As of December 4, 2020, eligible businesses facing financial difficulty due to COVID are now eligible to access an additional CEBA loan of up to $20,000. Half of this additional loan, up to $10,000, is forgivable if the loan is repaid by December 31, 2022.
The additional $20,000 loan is in addition to the original CEBA $40,000 loan.
In total, eligible businesses could receive up to $60,000 in CEBA loans with only $40,000 repayable (if repaid by December 31, 2022).
The CEBA application deadline was also extended to March 21, 2021. The original application deadline was December 31, 2020.
How to Apply
If you applied for the original CEBA $40,000 loan, you can apply through the same financial institution for the additional $20,000.
Even if you have not previously applied for the CEBA, as long as you are eligible, you can apply for up to the full $60,000 loan amount. To do so, apply at the financial institution where you have your business bank account.
Sources: Canada.ca, Government of British Columbia
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.