To help businesses cope with the financial implications of COVID-19, the federal government granted interest-free CEBA loans totalling $60,000 to qualifying businesses. For those who received the full $60,000 loan, provided that $40,000 is repaid on or before December 31, 2022, $20,000 will be forgiven and no interest will be charged. If you only received the first loan instalment of $40,000, $30,000 must be repaid on or before December 31, 2022, with $10,000 forgiven.
If your business received the CEBA loans, we advise that you keep this matter on your radar so you don’t miss the opportunity to benefit from the forgiven portion and interest waiver.
Since making a lump-sum payment could be difficult for some businesses, we recommend that you start repaying the loans, commencing December 2021, at $3,333.33 per month for the $60,000 loans, or $2,500 per month for the $40,000 loans, so that they are repaid prior to the due date and a large lump-sum payment will not be necessary.
If you have any questions regarding the above, please do not hesitate to contact us.