Ottawa extends CEBA small business loan program until June 30

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The federal government has extended the deadline for its Canada Business Emergency Account (CEBA) program, allowing businesses to apply for the interest-free loan until June 30.

Deputy Finance Minister Chrystia Freeland and Small Business, Export Promotion and International Trade Minister Mary Ng announced on Monday that the program, which was due to expire on March 31, has been extended until June 30. .

“The extension will allow more businesses to access the support they need as the Canadian economy continues to face localized public health restrictions and, for a number of businesses, hours of work. reduced openness or reduced demand for services, “the government said in a statement.

The CEBA offers interest-free loans of up to $ 60,000 to small businesses and non-profit organizations. When the program was first launched last April, the loan was capped at $ 40,000, with up to $ 10,000 in forgiveness if certain conditions are met. The government increased the loan to $ 60,000 in December, allowing an additional $ 10,000 to be forgiven if the loan is repaid by December 31, 2022.

According to the government, more than 850,000 companies have been approved for CEBA loans, totaling $ 44.91 billion in funds.

The Canadian Federation of Independent Business (CFIB) had called on Ottawa to immediately process all outstanding CEBA requests and consider expanding the program further – up to $ 80,000, of which 50 percent is forgivable. CFIB President Dan Kelly said via Twitter on Monday that he was happy with the extension, but urged the government to expand the program.

Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.

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