I received the Canada Emergency Business Account (CEBA), now what?

What you need to do to prove your eligibility.

If you received this interest-free loan from the government, then you want to make sure you’re spending the money on qualifying expenses. These would be non-deferrable operating expenses like payroll, rent, insurance, utilities, etc. 

You may be audited on how you spent the cash, so it is a good idea to have a spreadsheet of expenses that tracks which expenses were covered by this loan. If you want to be very transparent, you could move the loan balance ($40k) to a separate account and transfer money to your business’s main operating account as you incur the expenses.

Remember that the loan is interest-free until December 31, 2022. If the loan is repaid in full by that date, then 25% of it is forgivable. If it's not repaid, it converts to a 3-year term loan at 5% interest.