The federal government has announced changes regarding the CEBA loan repayment deadline. This issue has been a TIANS advocacy priority and while the initial announcement sounded promising, a closer look reveals concerning details.
The link to the full release is below. In summary:
- Operators will need to make appropriate arrangements with their bank if they are not in a position to pay back the loan by December 31, 2023, and:
- Businesses can still achieve the forgivable portion (up to $20,000) if the loan is refinanced by January 18, 2024 and paid back in full by March 28, 2024.
- Operators who refinance but don’t pay back the loan in full by March 28, 2024, will still receive the preferred 5%/year rate on the loan, which must be paid by December 31, 2026. **This scenario means that the business will forego the forgivable portion of the loan.*
- Businesses must make arrangements with their bank before January 18, 2024 or they will be forced onto the three-year repayment plan at 5% per year, and lose the forgivable portion.
Full Government Announcement: https://www.canada.ca/en/department-finance/news/2023/09/canada-emergency-business-account-government-extends-repayment-and-partial-loan-forgiveness-deadlines.html
Our partners at Tourism Industry Association of Canada (TIAC) issued the following release in response to the announcement: https://tiac-aitc.ca/cgi/page.cgi/_zine.html/TopStories/CEBAs_Revised_Repayment_Deadlines_Announced
TIANS will continue to work with our National Coalition partners, and commits to keeping Industry informed on this issue.