Time is of the essence, and we want to ensure that you’re well-informed and prepared for an important financial milestone. The deadline for repaying your government Canada Emergency Business Account (CEBA) loan with forgiveness is rapidly approaching, and we’re here to guide you through the process.
Launched on April 9, 2020, the CEBA was one of the Government of Canada’s financial relief measures to support Canadian businesses that have been adversely affected by COVID-19. These loans helped businesses stay open and afford to continue paying their employees and covering non-deferrable expenses (like rent or lease payments and property utilities) during COVID-19.
For eligible CEBA loan holders in good standing, repaying the loan balance on or before January 18, 2024, will result in loan forgiveness of up to 33 percent (up to $20,000).
Understanding the CEBA Forgiveness Deadline: January 18, 2024
The deadline to qualify for CEBA loan forgiveness is January 18, 2024. Be sure to mark this date on your calendar and fulfill the necessary requirements.
Consequences of Non-Compliance:
If the loan is not fully repaid by January 18th, 2024, the following consequences will apply:
- Full Loan Repayment: You will owe the entire amount of the CEBA loan, with no government forgiveness portion.
- Conversion to Term Loan: The full loan amount will automatically convert into a 3-year term loan at a 5% interest rate. Monthly interest payments will be due on the last day of each month.
How Integris Can Assist You:
At Integris Credit Union, we understand the complexities of managing your business finances, especially during challenging times. If your business may face challenges in fully repaying the CEBA loan by the deadline, we’re here to help.
Explore Regular Credit Union Loan Options:
We can explore regular credit union loan options to see if your business qualifies for a loan in the same amount as your portion of the CEBA loan. This strategic approach can potentially help you benefit from the forgiveness amount allowed under the CEBA plan.
Early Communication is Key:
Early communication is key to ensure that you have enough time to provide the necessary financial documentation for analysis. If you believe that your business may need additional financing to take advantage of the government forgiveness opportunity, we encourage you to reach out to us as soon as possible.
How to Get Started:
Contact Integris: Reach out to your dedicated Integris Commercial Advisor or our Commercial Banking team through our online appointment forum. We’re here to assist you with any questions and guide you through the loan evaluation process.
Financial Documentation: Prepare the required financial documentation for analysis. This may include business financial statements, cash flow projections, and any other relevant information.
Evaluate Your Options: Our team will work collaboratively with you to assess your business’s financial position and explore the most suitable options for your unique needs.
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At Integris Credit Union, we are committed to supporting your business’s financial health and success. The CEBA forgiveness deadline is an opportunity to proactively manage your financial obligations and position your business for continued growth.
If you have any concerns or questions, please don’t hesitate to contact us at 1-866-554-3456. We’re here to assist you in navigating this important deadline and ensuring that your business thrives in the years ahead.
