Skip to main content

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.

Source:  https://www.canada.ca/en/department-finance/news/2023/09/canada-emergency-business-account-government-extends-repayment-and-partial-loan-forgiveness-deadlines.html

Comments

Popular posts from this blog

Federal Government extending Local Lockdown Program benefits

  Source:    https://www.canada.ca/en/department-finance/news/2021/12/temporarily-expanding-eligibility-for-the-local-lockdown-program-and-the-canada-worker-lockdown-benefit.html Temporarily Expanding Eligibility for the Local Lockdown Program and the Canada Worker Lockdown Benefit Expanding Eligibility for the Local Lockdown Program Bill C-2, which received Royal Assent on December 17, 2021, included a new Local Lockdown Program to provide businesses that face temporary new local lockdowns with up to the maximum amount available through the wage and rent subsidy programs. As the Omicron variant spreads and new regional public health restriction are put in place to limit capacity, the government is proposing to temporarily expand the Local Lockdown Program to better support workers and businesses. Under current rules, employers must face a lockdown to be eligible for the program. The government intends to use regulatory authority approved by Parliament in Bill C-2 to temporarily amend

Canada Post has brought back Free Shipping Tuesdays

 Now, I believe you need to be a business customer of Canada Post, but had this shared with me.  You can get to ship one parcel for free on a Tuesday throughout October and be entered to win free shipping for a year. It’s Tuesday! Send one free Expedited Parcel™ within Canada today and save every Tuesday in October.     Here is your promo code:  OCT5     You’ll also be entered to win free shipping for a year (up to $10,000). You’ll earn a bonus entry every time you ship a parcel with your Canada Post Solutions for Small Business™ customer number during October.   Start shipping     Offer: This offer is exclusive to Canada Post Solutions for Small Business™ members without a pre-existing parcel agreement with Canada Post. Members are eligible to redeem one (1) free Expedited Parcel™ item within Canada on each of October 5, 12, 19 and 26, 2021, from 12:00 am to 11:59 pm, Eastern Time (ET). All items must be processed using the Canada Post Snap Ship™ online tool in conjunction with a uniq

PAROPitch it challenge could win you $500

 Paro is hosting sessions to teach you about pitching your business and more, and by attending 2 out of the 4 sessions will allow you participate in a pitch event and win $500 cash Click here for more information:   lp.constantcontactpages.com/ev/reg/kuvet85