Ottawa extends deadline for emergency business support program

The federal government has extended the deadline for new Canada Business Emergency Account (CEBA) applications until June 30.

Finance Minister Chrystia Freeland and Small Business Minister Mary Ng announced the extension on March 22. This extension applies to all new requests for CEBA loans of $ 60,000 or to new requests from businesses that have already received the loan of $ 40,000 and intend to request the additional $ 20,000. .

“This support will allow us to have a full and robust economic recovery, when the virus is completely defeated,” Freeland said. “Extending the CEBA application deadline will allow more companies to access this support and help them manage their operating costs in these extremely difficult times. “

Launched last April, CEBA offers interest-free loans of up to $ 60,000 to small businesses, to help cover operating costs such as rent, utilities and insurance during a period when their income is growing. have been temporarily reduced. These loans are partially repayable, as repayment of the loan balance by December 31, 2022 will result in a loan forgiveness of up to 33% (up to $ 20,000).

The government said 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, to reduced opening hours or reduced demand for services. The extension of the application deadline to June 2021 also aligns the CEBA with the timelines of other federal government business support programs.

“The CEBA, along with our other emergency support programs, has been essential for businesses that pay their bills, keep their doors open and their employees on the payroll,” said Ng. “Recognizing that businesses face challenges as we continue to fight the pandemic, we are extending the CEBA deadline to ensure they have the essential support they need. We are listening to entrepreneurs and we will continue to be there to support them.

More information about CEBA can be found here.

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