B.C. businesses hoping for another deadline extension for the Canada Emergency Business Account (CEBA) repayment may be disappointed.
As the Jan. 18 deadline for forgiveness repayment arrives, the federal government has shown no plans to extend the deadline.
If small business owners apply for a refinancing loan with the bank that issued their CEBA loan by the end of Jan. 18, they can repay by March 28 and still receive partial loan forgiveness for up to $20,000, according to Katherine Cuplinskas, a spokeswoman for the finance minister’s office.
“Alternatively, small business owners can take advantage of an additional three years, until Dec. 31, 2026, to repay their loan in full,” Cuplinskas said in a statement to BIV.
If the loan remains outstanding on Jan. 19, it will convert to a “non-amortizing term loan” with full principal repayment due on Dec. 31, 2026, according to the Government of Canada.
In September, the federal government extended the deadline for partial loan forgiveness to Jan. 18 for eligible CEBA loan holders.
CEBA has provided loans to nearly 900,000 small businesses in Canada and 70 per cent of CEBA recipients have repaid it as of Jan. 15, according to Cuplinskas.
