As the repayment deadline approached, the North Van Chamber reached out to businesses to learn more about the CEBA repayment deadline and its impact on their business. The following is what we learned:
Survey Results Summary:
- 95% of survey respondents felt the CEBA loan helped them sustain their business during COVID.
- 72% of survey respondents will not be able to pay back their CEBA loan.
- 68% of respondents felt the CEBA repayment deadline will significantly impact their business or put them out of business.
- 79% of respondents think CEBA repayment deadline should be extended.
In response to the COVID-19 pandemic’s effect on the economy in 2020, the Government of Canada launched the CEBA loan program, with eligible businesses receiving up to a $60,000 interest-free loan. The current deadline to repay the loan on or before December 31, 2023, for eligible CEBA borrowers in good standing, will result in loan forgiveness of up to 33% (up to $20,000).
In July 2023, as part of a national coalition of Chambers, the North Vancouver Chamber called on the federal government to extend the repayment deadline for CEBA (Canadian Emergency Business Account) loans for businesses.
Many businesses are still struggling, and a deadline extension would provide much-needed relief, allowing them more time to recover and generate income. This would prevent unnecessary financial strain on businesses and help sustain jobs and economic stability in these uncertain times.
For the latest information on the CEBA loan program, visit https://ceba-cuec.ca/
Loan Repayment Sept 14th 2023
- Any business that missed that deadline would start accruing interest and have to repay the loan in full by the end of 2025. That deadline will now be extended to the end of 2026.
- Businesses will be given a small extension — until Jan. 18, 2024 — to qualify for debt forgiveness. Businesses that refinanced their loans will be given until March 28 to qualify.
- All loans will start accruing five per cent interest if not repaid by Jan. 19.
Media re Sept 14th Announcement: