Image
Image
Image
Image
Image
Image
Image
Image
Image

MIXED REVIEWS FOR EXTENSION OF CEBA REPAYMENT DEADLINE

Posted by: Regina Chamber Admin - September 15, 2023

Thursday’s announcement by Prime Minister Justin Trudeau that the repayment deadline for loans under the Canada Emergency Business Account program would be extended appears to be a good news, bad news scenario.

The initial repayment deadline, which was originally scheduled for Dec. 31, 2023, has been extended to Jan. 18, 2024. The final deadline has been moved to Dec. 31, 2026.

The extension of the deadlines is good news for Canadian businesses, especially the small to medium-sized businesses which needed assistance to deal with the challenges of the pandemic.

The negative portion of the announcement was that the $20,000 forgivable portion of the program is not included in the extension.

The CEBA program allowed businesses to receive interest-free loans of up to $60,000, of which up to $20,000 would be forgiven if the business repaid the outstanding balance by the end of 2023. Otherwise, the debt would be converted to a two-year loan with interest of five per cent annually. The initial deadline of Dec. 31, 2022 was extended by the federal government by one year.

To read the announcement from the Federal Government, click HERE.

The Ottawa Business Journal provided an extensive look at the changes in the CEBA program. To read their story, click HERE.

Chamber News & Updates

Image
Image
Image