The Canada Emergency Business Account or CEBA was introduced alongside other COVID-19 relief measures to support the country’s small business community. The government rolled out this measure to help small businesses cover their fixed operating costs during the pandemic. However, the program has undergone a few updates and changes, and the latest one involves CEBA refinancing. In this blog post, we’ll take a closer look at CEBA refinancing options, what it involves, and how it can help small businesses moving forward.
What is CEBA Refinancing?
CEBA refinancing is the latest change to the CEBA program aimed at providing additional support to businesses that are still struggling amidst the pandemic. This measure will allow eligible CEBA recipients to access an additional interest-free and partially forgivable loan of up to $20,000, where $10,000 is forgivable if repaid by December 31, 2022. These funds can be used to cover any operating expenses incurred since the first CEBA loan was granted.
Who is Eligible for CEBA Refinancing?
To qualify for CEBA refinancing, companies must have received the initial CEBA loan of $40,000 and demonstrate they meet the additional eligibility requirements. These include the demonstration that they have experienced a decline in revenue of at least 50% due to the pandemic and that they have not yet received the maximum $60,000 in CEBA loans. Additionally, to access CEBA refinancing, businesses must also be registered in Canada and have an active business account at a participating financial institution.
How to Apply for CEBA Refinancing?
The application process for CEBA refinancing is similar to the previous one for the initial CEBA loan. Small business owners can apply for CEBA refinancing through the financial institution where they received the initial loan. Applications are now being accepted until June 30, 2021, and once the application has been approved, the additional funds will be deposited directly into the company’s active business account.
Ceba Loan Repayment
CEBA refinancing presents an excellent opportunity for businesses still struggling amidst the pandemic to access additional funding without incurring significant financial burdens. However, it is essential that CEBA loan repayment be timely and well-planned to avoid any financial issues down the line. The funds must be repaid according to the terms and conditions outlined in the original CEBA loan agreement. The deadline for repaying the additional loan funds is December 31, 2022. If repayment is made by this date, $10,000 of the additional funds will be forgiven.
Ceba News
The introduction of the CEBA refinancing initiative underscores the government’s commitment to support small businesses as they navigate the ongoing effects of the pandemic. Also, the Canadian Government has extended the application deadline for CEBA’s original loans to March 31, 2021. It has also increased the loan limit to $60,000 from the initial $40,000 loans. Moreover, businesses that received CEBA loans can write off eligible expenses on their tax returns. All these measures aim to provide support to small businesses during these challenging times.
Conclusion:
In conclusion, CEBA refinancing provides an excellent opportunity for businesses still grappling with the pandemic’s effects to access additional funding without significant financial burdens. Eligible companies should take advantage of this support measure provided by the Canadian government by applying before the June 30, 2021 deadline. However, businesses must ensure that they meet the eligibility requirements and understand the repayment terms to avoid any financial challenges in the future. We hope that the information provided in this blog post has been informative and helpful in making sense of the CEBA refinancing options for small businesses across Canada.
