In our commitment to keep you informed about critical financial updates that may impact your business, we are pleased to share an important announcement from the Canadian government regarding the Canada Emergency Business Account (CEBA).
Extended Repayment Deadline: A Relief for Small Businesses and Non-Profit Organizations
Recognizing the ongoing challenges faced by small businesses and non-profit organizations, the Canadian government has extended the repayment deadline for the CEBA loan. The new deadline is now January 18, 2024. This extension is aimed at providing additional flexibility and support, enabling businesses like yours to navigate through these unprecedented times more effectively.
Key Details of the Extension:
- Partial Loan Forgiveness: Repaying your CEBA loan by the new deadline can significantly benefit your organization. For a loan amount of $40,000, you are eligible for a forgiveness of $10,000, and for a $60,000 loan, the forgiveness amount is $20,000. This means up to 33% of your loan could be forgiven, alleviating a substantial part of your financial burden.
- Refinancing Option: There is also a provision for refinancing. Applications for refinancing must be submitted by January 18, 2024. Upon approval, the repayment deadline will extend further to March 28, 2024, offering even more leeway.
It is crucial to note that loans remaining outstanding after the repayment deadline will be converted into a three-year term loan. This loan will attract an interest rate of 5% per annum and will be due by December 31, 2026.
Our Advice:
We strongly encourage you to take advantage of this extension. It is an opportune moment to reassess your financial strategies and make informed decisions that will enhance the sustainability and growth of your business.
Need Assistance?
Understanding and navigating these changes can be challenging. Our team of experts is here to assist you in making the most out of this extension. Contact us for personalized advice and support in managing your CEBA loan and exploring your options.
