COVID -19 Financial Update

Repayment Deadline for CEBA loans extended

The Canada Emergency Business Account (CEBA) program provides interest-free, partially forgivable loans to small businesses and not-for-profit organizations to help them navigate the pandemic and remain resilient.  However, the Omicron variant has delayed the recovery for businesses in many parts of the country.

The repayment deadline for the CEBA loans to qualify for partial loan forgiveness has been extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.

The extension will support short-term economic recovery and offer great repayment flexibility to small businesses and not-for-profit organizations, many of which are facing continued challenges due to the pandemic.  Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).

Outstanding loans would subsequently convert to two-year loans with interest of 5 percent per annum commencing on January 1, 2024, with the loans fully due by December 31, 2025.

Ontario COVID-19 Small Business Relief Grant

The provincial government has announced an Ontario COVID-19 Small Business Relief Grant for small businesses required to close due to current public health measures.  This grant is intended to provide financial support and relief to those small businesses that have been subject to close under the modified Step Two of Roadmap to Reopen effective January 5, 2022, for at least 21 days (until January 26, 2022). Eligible businesses will receive a grant of $10,000 as support.

Eligible small businesses include:

      • Restaurants and bars
      • Recreational fitness facilities (including fitness centres and gyms)
      • Performing arts and cinemas
      • Museums, galleries, zoos, historic sites, and similar attractions
      • Meeting or event spaces
      • Tour and guide services
      • Conference centres and convention centres
      • Driving instructions for individuals and
      • Before- and after-school programs.

Applications for the Ontario COVID-19 Small Business Relief Grant will be open in the coming weeks and eligible small businesses can expect to receive their payment in February.

Lott & Company