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:

Our partners at Tourism Industry Association of Canada (TIAC) issued the following release in response to the announcement:

TIANS will continue to work with our National Coalition partners, and commits to keeping Industry informed on this issue.