Deadline to Receive Partial CEBA Loan Forgiveness Looms for Canadian Businesses

Jan. 18 will mark the deadline for Canadian businesses to repay pandemic loans and receive partial forgiveness, a move that business groups say will spell closure for thousands of struggling companies. “I believe the government will regret the decision to not grant more time as small businesses fail and default on their entire loan,” said Dan Kelly, president of the Canadian Federation of Independent Business, in a press release. Almost 900,000 businesses and non-profits received a Canada Emergency Business Account loan during the COVID-19 pandemic, securing up to $60,000 in interest-free loans to help them survive. Up to one-third of the loans could be forgiven if the outstanding amount is repaid by Jan. 18—otherwise, the debt will be converted into a three-year loan with five percent annual interest....