Has your small business taken advantage of the Canada Emergency Business Account (CEBA) during the pandemic? Repaying the loan might appear challenging for those who borrowed and are experiencing financial hurdles, but there is a ray of hope. Let’s delve into this situation, explore your available options, and understand the qualifying criteria.
CEBA was designed to be a lifeline for small businesses, akin to the well-known CERB program for individuals. It extended support to businesses, not-for-profits, and qualifying self-employed individuals, offering loans up to $40,000 at zero interest. The most encouraging aspect is that up to $20,000, one-third of the loan, can be forgiven if you repay the rest on time.
Qualifying for Forgiveness
The deadline to qualify for loan forgiveness is set for January 18, 2024. Although many have yet to commence repayments, there’s a solution at hand. East to West group has partnered with one of our lenders to provide a viable path toward a brighter financial outlook.
How CEBA Loan Forgiveness Works
The CEBA loan forgiveness program offers relief based on the amount borrowed and your repayment by January 18, 2024. Here’s how it works:
Exclusive East to West CEBA Loan Financing Program:
Imagine you took a $60,000 CEBA loan aiming for the government’s $20,000 loan forgiveness by repaying before January 18, 2024. Here’s the scenario:
- The lender provides the customer with a $40,000 loan, paid directly to their original lender.
- The loan structure involves 36 payments of $1,388.89, resulting in a total repayment of $50,000.
Successfully repaying the $50,000 by the deadline qualifies the customer for the government’s $20,000 loan forgiveness, offering significant financial relief. This example illustrates the potential to secure loan forgiveness while ensuring financial stability.
East to West Qualifying Criteria:
It’s important to note that there are qualifying criteria for the CEBA loan program:
- Must be an existing Bodkin Standard, Preferred, Prime, or Concentra Customer.
- All deals require a Personal Guarantee (PG) with a minimum FICO Score of 650.
- Available to existing customers only with a minimum of 12 months of perfect payment history.
- Available to customers where existing leases are value-retaining, i.e., Hard Assets.
- All CEBA loans are cross-collateralized against existing lease(s), and PPSA will not be released on cross-collateralized assets until both the lease and loan are paid off.
- The loan will be funded between December 15th and 31st to ensure funds are received and accounted for by the original Financial Institution that issued the CEBA loan, thus ensuring the $20,000 forgiveness.
- The first payment will be processed on the day of funding.
The CEBA loan program offers a pathway to relief for businesses and self-employed individuals, providing an opportunity to alleviate financial burdens and chart a course for a more secure future. Reach out to one of our specialists to learn more about Our CEBA Loan Financing Program.