Act Now – CEBA Repayment
The Government of Canada created the Canadian Emergency Business Account (CEBA) that provided an interest-free, government guaranteed loan of up to $60,000 to businesses and not-for-profits. This program was to assist in covering operating costs during the COVID-19 pandemic. The terms for CEBA allowed businesses who paid their outstanding loan balances by December 31st, 2023, to be granted loan forgiveness of up to $20,000.
- Businesses must repay $40,000 (for the $60,000 loans) or $30,000 (for the $40,000) by December 31, 2023, to be eligible for the loan forgiveness portion.
- If businesses are unable to repay the loan by December 31, 2023, an interest rate of 5% payable to the Government, will apply to any outstanding balance starting January 1, 2024, and must be repaid in full no later than December 31, 2025.
- The Perth & District Chamber of Commerce was a signatory to a letter from the Canadian Chamber of Commerce and other business organizations, asking the Minister of Finance to extend the loan repayment period to December 31, 2023.
The Chamber conducted a member Survey about CEBA in April 2023:
- 90% of respondents took advantage of the CEBA loan;
- 85% of respondents had not repaid the loan; and,
- 62% of respondents are either not sure or will not be able to repay the loan by December 31, 2023.
Options do exist to assist you! Have you spoken with BMO, RBC, Valley Heartland, BDC or other business/financial advisors or lending institutions, who can guide you through the most appropriate options for your business? Don’t delay – reach out today!
Please contact the Chamber if there is anything else we should know. Thank you.