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- This extension will enable businesses to get the support they need amidst COVID-19 restrictions and regulations.
- Over 8.5 million loans under this scheme have been granted till March 18, 2021.
In a bid to further support small businesses in Canada, the federal government on Monday announced that it is going to extend the deadline for its Canada Emergency Business Account (CEBA) program. This decision will now allow businesses to take interest-free loans until June 30. Earlier, the deadline was set to expire on March 31.
The moves come amidst restrictions due to the COVID-19 pandemic situation. A lot of businesses are operating with reduced working hours or facing demand issues. In an official statement, the government said that this extension will enable businesses to get the support they need as the country's economy and businesses are dealing with restrictions.
Earlier, the Canadian Federation of Independent Business (CFIB) had urged the government to process the outstanding CEBA applications and expand the program. The CFIB had requested the government to increase the loan amounts to up to C$ 80,000.
@Kalkine Image 2020
A look at the CEBA scheme
The CEBA scheme was floated in April 2020 when the COVID-19 pandemic was at its peak.
It grants interest-free loans of up to C$ 60,000 to small businesses to help them cover their operating costs. If the business owner is unable to repay the loan on or before December 31, 2022, then an amount of up to C$ 20,000 could be waived off as loan forgiveness.
More than 8,50,000 loans under this scheme have been granted till March 18, 2021. This means a total of C$ 45 billion has been disbursed as credit.
Those willing to apply for the CEBA loan must demonstrate their non-deferrable expenses of C$ 40,000 or more. Apart from this, the applicant must have an active business number that was registered before March 1, 2020.