The Canada Emergency Business Account Loan is a program that offers interest free loans to small businesses and not-for-profit companies of up to $60,000. Thousands of businesses have taken advantage of these loans during the pandemic.
Businesses have until January 18, 2024 to repay their CEBA loan. After this date, outstanding loans will convert to non-amortizing term loans, with full principal repayment due by December 31, 2026.
If businesses are unable to repay their CEBA loan by the forgiveness repayment date, their financial institution will contact them for a lump sum repayment. Failure to comply may result in the loan being assigned to the government’s CEBA Program for collection efforts.
If paid back on or before January 18, 2024, up to $20,000 of the outstanding balance will be forgiven.
“There’s only one week left to repay the loan while securing the up to $20,000 forgivable portion. And with over 900,000 small businesses holding CEBA loans and 22% not in a position to repay at this time, this decision has huge implications for Canada’s economy.” Says Dan Kelly, CFIB President.
If you need assistance paying back your CEBA loan at this time, contact us! We would love to help.
Trish & The Primex Team