Scotiabank has announced that it will begin accepting applications for the next phase of the Canada Emergency Business Account (CEBA), in which the federal government is now requiring Export Development Canada (EDC) to approve eligibility before funding is released.
“While small business and business banking clients will still be required to provide an attestation to Scotiabank as part of the application process, EDC will also request additional documentation before a loan can be approved,” the bank said in a statement.
Scotiabank provided assurances that the expanded eligibility will help “a broader group of businesses” benefit from the financial assistance program.
“We’re pleased to see the government introduce phase three of the CEBA program and open eligibility up to more businesses in need of support during this challenging time,” said Dan Rees, group head of Canadian banking for Scotiabank. “We’re excited to help even more small businesses gain access to relief funds and continue providing advice and solutions to help them come out of this even stronger.”
With the COVID-19 pandemic wreaking unprecedented economic havoc, the commercial segment must brace itself for significant shifts as many businesses will be forced to move their operations online, according to a recent analysis by RBC Economics.
The market will likely endure these conditions for the long haul, as there is no way to tell when the fiscal turmoil would abate.
“This could be a nine-month thing or it could be a two-year thing,” said Dawn Desjardins, deputy chief economist at RBC.