Since the start of COVID-19, Canadian small business owners have been hit hard with financial losses and unprecedented challenges. The Canadian government designed the Canada Emergency Business Account (CEBA) to provide some level of economic relief to small businesses across the country. However, CEBA has come with several repayment extensions, each with its own nuances. As Canadian small business owners continue to navigate the complexities of CEBA repayment, the recently announced Extension #3 has come with several new updates to it. In today’s blog post, we’ll take a closer look at what CEBA Extension #3 means for small business owners across the country.
1. What is CEBA Extension #3?
CEBA Extension #3 is the third extension of the original CEBA program and was recently announced by the Canadian government. The extension is specifically aimed at providing small businesses with additional working capital while they navigate the ongoing COVID-19 pandemic. The extension provides a $20,000 interest-free loan, with an additional $10,000 loan that can be forgiven if specific criteria are met. This extension is only available to businesses that received the original CEBA loan and have made the proper efforts to repay it.
2. What Does CEBA Extension #3 Mean for Small Business Owners?
CEBA Extension #3 is a welcome relief for Canadian small business owners who have been struggling to stay afloat during the COVID-19 pandemic. This new extension will provide eligible businesses with additional funds to cover ongoing expenses and working capital, which could be the difference between a business surviving or closing its doors. Additionally, the $10,000 loan forgiveness can provide even more financial relief as Canadian small business owners look to get back on their feet.
3. CEBA Refinance: Can Business Owners Refinance Their Original CEBA Loan with Extension #3?
Yes. The Canadian government has allowed small business owners to refinance their original CEBA loan with Extension #3. This means that businesses can access the $20,000 loan and $10,000 loan forgiveness by refinancing their original CEBA loan into Extension #3. Business owners must apply for the refinance through their current financial institution, and the loan is subject to those institutions’ eligibility criteria and processes.
4. How to Apply for CEBA Extension #3?
Eligible businesses can apply for the CEBA Extension #3 through their financial institution. They will have to undergo the lender’s verification process to ensure that they meet the eligibility criteria. Business owners will have to provide accurate and up-to-date financial and economic data that proves their business is continuing to experience financial difficulties. Additional documents may be needed to prove small businesses’ eligibility for the CEBA loan or refinance.
5. CEBA News: Upcoming Cease Application Date
The Canadian government has set a deadline of March 31, 2021, for the CEBA program application. Small business owners who have not applied for the original program are urged to do so before the deadline to ensure that they are availing themselves of all possible economic relief during these challenging times.
Overall, CEBA Extension #3 is a welcome addition for Canadian small business owners who continue to struggle during the ongoing COVID-19 pandemic. The extension provides additional working capital and loan forgiveness options that can help businesses stay afloat and recover from economic losses. It is crucial for small business owners to stay up-to-date on the CEBA program changes and apply for the upcoming deadline. By staying informed and taking advantage of the available CEBA resources, Canadian small business owners can weather this ongoing economic storm and emerge stronger than ever before.