How business owners can get ready for the CEBA loan forgiveness deadline

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For businesses planning to borrow to take advantage of loan forgiveness, a secured loan can offer the lowest interest rate

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“On top of that, the average small business has taken on more than $100,000 in debt just to survive the period of COVID restrictions … [that was] not for good things like [opening] a new location or [buying] a new piece of equipment, but just to keep the lights on.” According to Mr. Kelly, 70 per cent of CFIB members have not yet been able to repay anything toward their CEBA loans. While the CFIB continues to advocate for a further extension of the loan forgiveness deadline, Mr. Kelly recommends business owners take steps now to speak with their bank and arrange approval for a term loan at the best possible interest rate.

Mr. Ren adds that the upcoming CEBA deadline is a good reminder for advisors to look beyond a business owner’s growth plans and cash-flow planning to examine the liability side of the balance sheet, and also read the fine print of government programs such as CEBA that affect businesses. Industries haven’t bounced back the same However, Ms. Porter acknowledges that her clients, who include legal and dental professionals and other business owners who got back to full capacity quickly after the closures, aren’t facing the same challenges as harder-hit industries such as retail and restaurants.

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