Manitoba businesses risked missing CEBA deadline
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Hey there, time traveller!
This article was published 22/01/2024 (606 days ago), so information in it may no longer be current.
As the dust settled on the Canada Emergency Business Account deadline, about 3,910 businesses in Manitoba businesses risked missing the deadline.
The Canadian Federation of Independent Business spokesperson Brianna Solberg said out of 23,000 Manitoba businesses that took CEBA loans, there are indications that they might not have met the Jan. 18 deadline.
“We don’t have data on the businesses that missed the deadline, as we will be surveying on that later this month,” she told the Sun. “We do know that as of December 2023, 3,910 of Manitoba businesses indicated they would likely not meet the deadline.”
The businesses, she said, could be in trouble, noting that with all the other cost increases business owners face due to inflation — including rent, utilities, food and fuel — this loan repayment could be the straw that breaks the camel’s back.
She said that some businesses have already closed their doors, anticipating difficulties in repaying the funds. Looking ahead, Solberg warned of potential closures over the next few years as business owners grapple with making interest payments amid rising operational costs.
For business owners seeking to borrow for CEBA repayment while retaining the forgivable portion, she said CEBA had advised them to apply for refinancing with the original CEBA bank before Jan. 18.
“Those applying by the deadline qualify for a special extension until March 28, 2024, allowing more time to repay and retain the forgivable portion,” she said. “In case of rejection for refinancing, businesses still qualify for the extension until March 28, 2024, as long as their accounts are in good standing, providing an additional window to explore alternative financing.”
Eligible businesses unable to repay or secure borrowing for loan repayment risk losing the forgivable portion but have until the end of 2026 to repay the balance at a five per cent interest rate.
Solberg said the government, under CFIB pressure, announced flexibility for these cases, allowing up to a two-year repayment period with no penalties and a five per cent interest rate.
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