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No new deadline for reimbursing COVID loans | COVID-19: all about the pandemic

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Loans granted by the Account The Canadian Business Emergency (CEBU) was mainly granted to small businesses.

The Canadian Press

Ottawa will not give another reprieve to businesses and businesses who must repay the emergency loans that were granted to them during the COVID-19 pandemic. COVID-19.

Justin Trudeau has clearly closed the door to a further extension of the deadline, while loans granted by the Canadian Emergency Business Account (CEBA), better known as COVID loans , must be repaid this Thursday, January 18.

These loans were mainly made to small businesses operating in sectors such as retail, catering or tourism.

Speaking Tuesday to an audience of some 650 business people gathered in Montreal at the invitation of the Chamber of Commerce of Metropolitan Montreal, the Prime Minister was very clear: After the most intense period of COVID, there are other challenges. We have already extended this aid twice, but at a certain point, it is time that we continue to move forward.

Mr. Trudeau then responded to a question from the president of the Chamber of Commerce, Michel Leblanc, who, like many other economic organizations, is concerned about seeing the beneficiaries of these loans be unable to repay them. on time.

COVID-19: all about the pandemic

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Many large organizations, especially those representing SMEs, requested another postponement, citing among other things the economic context marked by inflation and soaring interest rates.

The Prime Minister brushed aside these concerns, saying that those who had received these loans had many options and that the majority of businesses were in the process of repaying them to comply with the x27;due January 18.

One of the important elements surrounding these loans is the fact that part of them is in the form of a grant that the beneficiaries do not have to repay, which varies from $10,000 to $20,000 depending on the loan. x27; magnitude of the amount provided. However, the grant will be lost if the loan is not repaid by the January 18 deadline or if the beneficiary has not obtained refinancing of this loan from a bank at the deadline.

This is one of the options the Prime Minister was referring to. They can renegotiate with their financial institutions and still benefit from the benefit of the $10,000 or $20,000 that is taken away.

The Another option is to spread the payment of their debt over three years at a reduced interest rate of 5%, but by choosing this solution, the company loses the subsidy and must repay the entire amount of money advanced.

Justin Trudeau was clear: there will be no further postponement of the deadline. We have reached a point where it is time to move on. […] The majority of companies were able to repay these loans. The others, we will look for other ways to help them, encourage them, but now is the time to continue moving forward.

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