Ottawa, ON — Thousands of small business owners who took out a CEBA loan will soon have an increase in their debt.
Business owners looking to secure the forgivable portion must repay up to $40,000 or apply for a refinancing loan with the bank that issued their original CEBA loan by Jan. 18. If they miss this deadline, their CEBA debt will rise by 50 per cent to $60,000.
Despite 57,000 business owners asking for an extension, the deadline to repay the loan is set for Jan. 18, which the Canadian Federation of Independent Business (CFIB) finds extremely disappointing.
“Ottawa failed to address the most critical issue on outstanding CEBA loans — the loss of the forgivable portion. I believe the government will regret the decision not to grant more time as small businesses fail and default on their entire loan. For many businesses, CEBA will be the straw that breaks the camel’s back,” said Dan Kelly, president of the CFIB.
CFIB states that it garnered support from all 13 Canadian premiers and three federal parties to advocate for an extension.
The association also adds that many bank staff do not understand the process around the refinancing extension to March 28. As a result, the CFIB is urging all businesses looking to use this provision to send an immediate written request for refinancing to their original CEBA bank and keep any documentation they’ve submitted.