The federal government has set Jan. 18 as the deadline for small businesses to pay off debt from the pandemic-related CEBA program. Ottawa paid out almost $49 billion in CEBA loans to nearly 900,000 small businesses during the pandemic, as many were forced to close their doors or limit their operations.
If a business has repaid the remaining portion of the loan, it can retain up to $20.000 of the maximum $60.000 loan. As of Friday, any outstanding loans will be converted into three-year, interest-only loans with a five-per-cent annual rate. According to the finance department’s summer numbers, only about one in every five of the nearly 900,000 CEBA loans have been repaid, though they anticipate a large influx of repayments leading up to Jan 18th.
The CEBA loan forgiveness deadline has been postponed two times by the Liberal government, but Justin Trudeau said Wednesday that Ottawa will not postpone it a third time.