Today marks a critical deadline for thousands of small Canadian businesses grappling with federal loan repayments. Under the Canadian Emergency Business Account (CEBA), these businesses received up to $60,000 to mitigate the impacts of COVID-19 shutdowns. Now, to benefit from loan forgiveness, they face the pressure to settle their dues.
Ottawa’s disbursement through CEBA reached nearly $49 billion, aiding almost 900,000 businesses. Those able to repay their loans by today can have up to $20,000 forgiven. However, failure to meet this deadline will transform these loans into three-year term loans, attracting an annual interest rate of five percent.
Despite previous deadline extensions, the government, led by Prime Minister Justin Trudeau, remains steadfast in not pushing the date further. The rush to refinance through private lenders or banks is palpable among business owners. The Canadian Federation of Independent Business has voiced its concern, foreseeing a wave of business failures and loan defaults as a consequence of this stringent deadline.
As the day unfolds, the situation underscores the ongoing challenges faced by small businesses in the evolving post-pandemic economy.
What do you think .. Comments below!