legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

## The Impact of CEBA Repayment Deadline on Small Businesses in Canada

January is often seen as the toughest month of the year for small businesses, especially those in retail, following the holiday season. ItÔÇÖs a stress that has only been magnified by the Jan. 18 deadline to repay the Canada Emergency Business Account (CEBA) loan.

Hundreds of thousands of small businesses across the country took advantage of this fund when it was created during the COVID-19 pandemic to help ease the financial burden. Now the time has come to pay back the full $60,000 in loans, and many wonÔÇÖt be able to.

ÔÇ£Small business owners are extremely optimistic, sometimes they are overly optimistic,ÔÇØ says Fr├®d├®ric Gionet, senior policy analyst for the Canadian Federation of Independent Business (CFIB) for Atlantic Canada. ÔÇ£They find solutions, they ae very innovative to find solutions to their problems but I think for some of them it might be too much to handle.ÔÇØ

Those who can pay in full by the deadline will see $20,000 of the $60,000 forgiven. Those who cannot meet the Thursday deadline to repay their $60,000 in CEBA loans will owe the full amount plus five per cent interest over the next three years with monthly payments starting immediately.

ÔÇ£What is adding 1,800 dollars a month? Well it means almost 10,000 dollars in additional sales just to get that amount after profit just to pay that thing so itÔÇÖs a hurdle,ÔÇØ Gionet says for those who cannot meet the CEBA repayment deadline. ÔÇ£On top of all the other taxes that have increased, we have estimated the cost of an employment has increased about $5,500 just on CPP (Canada pension plan) and EI (employment insurance).ÔÇØ

Some businesses have already settled their debts ahead of the deadline. Gaye Ann Walsh, president of Walsh Luggage located inside Saint JohnÔÇÖs Market Square, has paid back her CEBA loan.

ÔÇ£IÔÇÖm still working a lot of long hard hours to try and keep things rolling the way that I want,ÔÇØ admits Walsh. ÔÇ£I didnÔÇÖt want to be one of the people in January sitting around the house crying because you didnÔÇÖt have what you needed to have.ÔÇØ

Those who havenÔÇÖt paid back the loan are unsure of what will happen next.

ÔÇ£DoesnÔÇÖt help that it is due in a really, really slow time of year but it is what it is,ÔÇØ says Pristine co-owner Matt Shields, who has not paid his CEBA loan back and is unsure if his business will be able to in just two days. ÔÇ£It is stressful but at the end of the day you have to come good on your debts in business and in life so you do what you can to make it work.ÔÇØ

Shields isnÔÇÖt alone in his struggles, with Gionet noting his phone has been ringing nonstop from concerned business owners who wonÔÇÖt be able to make ends meet.

ÔÇ£If a fifth to a third of small businesses cannot pay their CEBA loans for the forgivable amount for the deadline tomorrow, that means nine- to 13,000 businesses in Atlantic Canada are in that situation,ÔÇØ Gionet says.

He says hundreds if not thousands of these businesses will likely not reopen if they cannot repay their CEBA loans and are forced to close. Even for those who are able to repay their loans on time and can keep their doors open, Gionet expects not much wiggle room for those businesses if anything comes up.

Gionet says he will continue to fight for a deadline extension until Jan. 18.

**How AI legalese decoder Can Help**

The AI legalese decoder can help small business owners navigate the complex legal and financial terms of the CEBA loan repayment process. It can provide a simplified explanation of the terms and conditions, helping business owners better understand their options and potential consequences of not meeting the repayment deadline. Additionally, the AI legalese decoder can offer insights on alternative financial solutions or options for seeking deadline extensions, providing valuable assistance to small businesses during this challenging time.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link