With 51% of restaurants struggling, CEBA extension not enough: industry group

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The federal government will be extending the deadlines for CEBA loan repayments, but Restaurants Canada says it's not enough to help many struggling businesses.

CEBA was available from April 9, 2020, to June 30, 2021, and provided $49 billion in interest-free, partially forgivable loans of up to $60,000 to nearly 900,000 small businesses and not-for-profit organizations to help cover their operating costs during the COVID-19 pandemic.

“For CEBA loan holders who make a refinancing application with the financial institution that provided their CEBA loan by Jan. 18, 2024, the repayment deadline to qualify for partial loan forgiveness now includes a refinancing extension until March 28, 2024,” theLoans that are still outstanding on Jan. 19, 2024, will convert to three-year term loans, subject to interest of five per cent per year, the government said, “with the term-loan repayment date extended by an additional year from Dec.

“We’re a little disappointed… that our request… to extend this another year hasn’t been granted,” he added. “The government has now made it so that the year-long extension on the CEBA repayment is conditional on beginning repayments and refinancing the loan in full by March 28, 2024,” Restaurants Canada explained in a news release.

“We need the federal government to extend the interest-free period and allow restaurants to access the forgivable portion of these emergency loans that were taken out to survive the COVID-19 lockdowns.”According to a Restaurants Canada survey in July, 51 per cent of restaurants are operating at a loss or barely breaking even, compared to 12 per cent pre-pandemic.

 

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