The deadline for repaying loans from the Emergency Account for Canadian Business (CUEC) program has been extended by one year, announces the federal government.
© Sean Kilpatrick / The Canadian Press
Finance Minister Chrystia Freeland followed by Prime Minister Justin Trudeau (on file).
Small businesses need flexibility tooPrime Minister Justin Trudeau argued at a press conference on Wednesday. That is why we are announcing today that the repayment period for loans from the Emergency Account for Canadian businesses is being extended.»
The deadline therefore goes from December 31, 2022 to December 31, 2023 for all eligible borrowers in good standing», Indicates the Ministry of Finance by press release wednesday.
A decision which is explained in particular by the fact that Omicron variant delayed business relaunch in many parts of the country».
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CUEC interest-free loans can reach $ 60,000 and are used to help businesses to cover their operating costs during a period when their income has been reduced».
Repayment of a loan before or on the new deadline will result in a partial write-off of up to a third of the value of the loan (i.e. up to $ 20,000)», We specify.
Overdue loans will be converted into two-year loans with an interest rate of 5% per annum beginning on 1is January 2024 and must be fully reimbursed by December 31, 2025.»
Nearly 900,000 small businesses and nonprofits have benefited from more than $ 49 billion in loans from CUEC, according to the government.