Government support for businesses


The Federal government has created a new program called the Canada Emergency Business Account. This will provide a $40,000 interest-free, government-guaranteed loan to help businesses cover operating costs that they are not able to defer as a result of COVID-19. $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if the remainder is fully repaid on or before December 31, 2022. If the loan cannot be repaid by this deadline, it can be converted into a 3-year term loan charging an interest rate of 5%. Kawartha Credit Union business and not-for-profit members will be eligible to apply for this loan if:

  • they have a 2019 payroll of between $20,000-$1.5 million
  • Kawartha Credit Union is their primary financial institution (account opened on or before March 1, 2020) for day-to-day payments and cash management activities.
If they do not meet these eligibility requirements, business members will need to apply through the financial institution that holds their primary Business Operating Account. We recently learned of some implementation challenges that the Economic Development Corporation and the Federal government are experiencing which has caused a delay in some credit unions being added to the EDC’s approved list of lenders in order to begin the process of accepting applications.


The Federal Government established a Business Credit Availability Program (BCAP) to provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). BDC and EDC are working with credit unions to provide solutions for individual businesses in such sectors as oil and gas, air transportation, exports and tourism.