Canada Expands Small Business Loan Program
The Canadian government has expanded its Canadian Emergency Business Account (CEBA).
Eligible businesses facing financial hardship as a result of the COVID-19 pandemic are now able to access a second CEBA loan of up to $20,000 in addition to the initial $40,000 that already was available to small businesses. Half of this additional financing, up to $10,000, will be forgivable if the rest of the loan is repaid by December 31, 2022.
This announcement means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid on time. The application deadline for CEBA has also been extended and is now March 31, 2021.To apply, eligible businesses must contact the financial institution that provided their initial CEBA loan and provide the appropriate information and documentation.
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