The Canadian Construction Association (CCA) has published a list of tips to help small- and medium-sized businesses access emergency financing through two programs available from Export Development Canada (EDC).

Businesses that have been affected by COVID-19 can use the Canada Emergency Business Account (CEBA) to access loans of up to $40,000 to cover non-deferrable costs such as payroll, rent, insurance and utilities. The loans will be interest-free, and applicants who pay back the loan by December 31, 2022 can have up to 25 percent of their loans forgiven, up to $10,000.

The program is available to organizations that can demonstrate their total payroll in 2019 to be between $50,000 and $1 million.

The second initiative, the Business Credit Availability Program (BCAP), is being administered by EDC in conjunction with financial institutions. Through it, EDC will guarantee new operating credit and cash- flow term loans that financial institutions extend to small and medium-sized enterprises, up to $6.25 million.

CCA advises the funds from BCAP-guaranteed loans may be used by a company only for liquidity needs created by the pandemic, such as to pay interest on other loans in the event of a decrease in liquidity.

Applications must be done in person with a bank manager or loan officer, and CCA advises applicants bring such items as a business plan, two years of financial statements, a statement about the negative effects of COVID-19 on liquidity.

More information about the programs, and advice on the application process is available at https://www.cca-acc.com/wp-content/uploads/2020/03/Tips-to-help-you-secure-the-EDC-financing-CEBA-and-BCAP-Guarantee-March31-2020-EN.pdf.