Personal Finance

Canada Emergency Business Account (CEBA): do dividends count?

  • Last Updated:
  • Apr 21st, 2020 9:04 pm
[OP]
Deal Addict
Sep 19, 2009
2069 posts
867 upvotes
Toronto

Canada Emergency Business Account (CEBA): do dividends count?

Anyone knows if non-eligible dividends are now admissible for CEBA loans, similar with CERB? Any news from today Trudeau's speech? Thanks.
7 replies
Deal Addict
Nov 17, 2004
2808 posts
1046 upvotes
No. You still need T4 payroll to qualify. The range for CEBA has changed to $20k-$1.5M though.
Deal Fanatic
Oct 7, 2007
8328 posts
4288 upvotes
It sounds like this is still a work-in-progress. Don't be surprised if they change the eligibility criteria to include dividends in coming days.
Deal Addict
Jan 12, 2012
3170 posts
171 upvotes
East York
andrew4321 wrote: Anyone knows if non-eligible dividends are now admissible for CEBA loans, similar with CERB? Any news from today Trudeau's speech? Thanks.
you should use google and try doing some research yourself instead of consistently asking others to answer questions you have. It's not hard to go back and watch his press conference or find news articles on what he announced.
Deal Fanatic
Oct 7, 2007
8328 posts
4288 upvotes
Drew87 wrote: you should use google and try doing some research yourself instead of consistently asking others to answer questions you have. It's not hard to go back and watch his press conference or find news articles on what he announced.
I wouldn't rely too much on the speeches as they are quite vague and wishy-washy and may not be enough support if you have to defend a position taken. I think it would be better to use the CRA website as a basis for decision-making. Here is a link to a general page and then you can navigate through:

https://www.canada.ca/en/public-health/ ... oronavirus

The information on here changes from time to time so it is a good idea to check back if it matters.
Sr. Member
User avatar
Dec 20, 2017
658 posts
779 upvotes
The government may eventually allow dividends to count, but here are the reasons why I believe were used to exclude it.

- Employer didn't pay CPP on dividend income, thus it didn't contribute into the Canadian pension plan. ("supporting the elders")

- Dividends aren't a "stable" source of income. It doesn't have to be paid out on schedule and has looser deadlines / penalties. Again, government didn't collect its penalties on late payroll reports / filings, which have much stricter penalty rules on even one day late filings.

- Employees usually aren't shareholders of your company. Thus again, the gov't feels you haven't helped boost the Canadian economy by hiring Canadian employees.

- Dividends are usually paid out after company makes a profit, so gov't likely thinks you're pretty well off.

- Salary proves you've got employee expenses on a payroll, dividend shows $0 salary expenses / no employees / contractors only.
Deal Addict
Oct 25, 2007
1676 posts
423 upvotes
Mississauga
I am self employed-incorporated and paymyself T4 (do consulting work) and my assignment was ended due to covid after march 31st.
I applied for CERB when i heard self employed people are eligible but came to know about this CEBA load of $40k and wondering if i am eligible to get this while claiming CERB as well.

Did not come across this question or FAQ anywhere...appreciate if any one clarify .

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