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CEBA loans extended for 18 days

 If you had been in business during the pandemic, you knew how much it 'hurt' and the Canadian Emergency Bank Account came in as an option to provide some cash flow.

The idea at the time was for a $40,000 'loan' from the government, you had time to pay it off at 0%.  And if you paid off $30,000 (75%) of it by a set time then the $10k (25%) was forgiven.  As the pandemic went on, another $20,000 could be added, where half of it would be forgiveable.

If you had taken the full 60, you would have had to pay 40 to get 20 (30/10 + 10/10).  If you had taken 50 the math would be pay 35 to get 15 (30/10 + 5/5) .

Now, all sounded okay, but eventually the deadline was coming up and it had been set for December 31 of this year to pay off the amount needed to get the amount to be forgiven.  If not, then whatever was left was transferred to a normal loan.  If you had taken that 50k example above, if you got to December 31 and only paid back $34... then you would have the full remaining 16 converted to a loan.

The government has now said that the loan can be extended until January 18 in recognition that the holiday season is fairly busy and an opportunity to 'catch up' could be important.

Those that are 'refinancing' with their loan holders can extend the deadline to March 28th in order to be able to get the chance to get the forgiveable piece.

Those who haven't paid off the amounts will have 3 years (until Dec 31, 2026) to pay the loan at a 5% rate.

Now, folks like the CFIB who pushed for the extension are saying that this still isn't enough.  With many businesses still not yet having the loan paid off to the point (only 18% are fully paid off), but almost 70% have not yet paid off any of it.  Less than 3 months to the deadline, only getting at most an extension of 3 months is pretty disconcerting.



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