What can you do with your $40,000 CEBA loan?


Sep 09, 2020

The premise

In tandem with the banks, the Canadian government recently launched a support program where small businesses and not-for-profits can take a loan of up to $40,000 (see below). To help you get things back on track for you, your shareholders and your customers, it may be a good time to think about making some capital upgrades and updates to your commercial or industrial space(s). 

The ideas

Depending on what you do or make, we’ve got a few ideas to get you thinking about how you might spend this loan money to reap the maximum rewards for your business moving forward. Note that this is by no means a full list, and we recommend you always work with your accountants, key decision-makers, and the bank to ensure you’re making the best choices for you and your business. Here are a few things to think about:

Help stabilize and maintain consistent interior temperatures for food processing and storage.

With your loan, you could:

  • Design a new freezer made out of 6” Isowall and have it installed at your premises
  • Replace your energy inefficient 5’ x 10’ cooler with our 4” Isowall panels to help bring your energy costs down, increase the floor size and/or ease the burden on your HVAC equipment
  • Build a new 20’ x 20’ area out of insulated panels to expand your cannabis processing spaces and take on bigger distribution opportunities 

Separate workspaces and staff.

Perhaps the ‘bullpen’ approach or open work stations layout is no longer what you want. With your loan, you could:

  • Turn one large interior working space into 4-6 smaller areas to encourage social distancing amongst your staff
  • Put up a divider wall to separate customer service areas from shipping/receiving
  • Parcel off understaffed areas of your building with Isowall panels for additional storage or processing spaces
  • Rebalance your teams with additional division walls to accommodate reclaimed areas as the result of new work from home initiatives

Increase the value of your building to attract more tenants or fetch a higher price when it comes time to sell.

With your loan, you could:

  • Buy the insulated panels you’d need to turn a big warehouse into 4 individual rental spaces and have us install them for you
  • Modernize the inside and outside of a dated building you own that doesn’t seem to attract any renters
  • Line a warehouse with panels to turn a less-than-desirable space into one with more ‘curb appeal’ 
  • Convert a storage space you own into a place where food can be packaged and prepared in keeping with CFIA standards
  • Enhance a rental space with Rockwall panels to attract companies that have specific fire safety requirements beyond basic building design

The fine(r) print

‘Originally launched on April 9, 2020, CEBA is intended to support businesses by providing financing for their expenses that cannot be avoided or deferred as they take steps to safely navigate a period of shutdown, thereby helping to position businesses for successful relaunch when the economy reopens.

This $55 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits.

Repaying the balance of the loan on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000).

As of June 26, 2020, businesses eligible for CEBA now include owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll. This means that more small businesses can access it.

Applicants with $20,000 or less in payroll in 2019 will have to demonstrate having Eligible Non-Deferrable Expenses between Cdn. $40,000 and Cdn. $1,500,000 in 2020. Expenses are considered “Eligible Non-Deferrable Expenses” if they were already incurred in January and/or February 2020, or are due to a legal or contractual obligation as at March 1 and cannot be avoided or deferred beyond 2020 even during a period of shut down and depressed revenues as a result of COVID. CEBA is not intended to provide income support or support for variable operating expenses to businesses.

CEBA applicants agree that the government may conduct audits to confirm the nature of the expenses applicants use to establish their eligibility for CEBA and acknowledge that inaccuracies may lead to legal consequences.

The expanded CEBA is being made available gradually by more than 230 financial institutions across the country, starting with the larger banks. Other participating financial institutions will start offering the program over the coming weeks.

All applications are administered through your financial institution. Please visit your institution’s website for more information or FAQs.’ [Source: https://ceba-cuec.ca/]

The backstory

Our Rockwall™ Isowall® prefab sandwich panels are a superior energy-efficient & economical insulation solution for any project. Contact us today to learn more about our technical capabilities and services.