The hidden truth about COVID CEBA loans & how to save $20,000

Own Your Life ~ by Jessi Johnson

CEBA Covid business loans are due in a few months, so I will share how you can save $20,000!
In this episode, we will cover the potentially negative impact of the COVID CEBA loans that are due end of December and the trick to save your business $20,000!
Did you know that over 900,000 businesses in Canada took CEBA COVID loans?
For those that don't know, these were the loans granted by the government after they shut down businesses during Covid lockdowns so that they could have a chance of survival.
That means the government lent out 50 to 54+ billion dollars and expects it back very soon.
Over 50 billion of that is still outstanding.
Are you curious how many of those businesses have already paid back that debt?
Only 10% and 72% are asking for more time, an extension of repayment
90% of businesses still owe the government the $40,000 to $60,000 and most took the 60k.
The Financial Post reports that over 250,000 Canadian businesses may close if the loan repayment deadline isn't extended (for a second time).
89%, of small businesses in Canada took out the CEBA emergency loans during the pandemic to help them stay afloat, according to the Financial Post.
The government didn't have the money to lend in the first place, so they printed it, which caused most of this inflation mess in the first place.
If businesses and families don't have enough struggle already, now they will have another huge monthly payment to worry about.
This could be a massive problem for many and the government should seriously consider extending this loan until the economy bounces back and inflation subsides.
By the way, of the $40,000 or $60,000 borrowed, the government is offering up to $20,000 forgivable.
That equates to $10,000 if you borrowed $40,000 and $20,000 if you borrowed $60,000. I don't know how they came up with those ratios because that simple math is off my mile.
If you do not have the entire loan paid back by the cut-off time on December 31st, 2023, you will not be able to receive the forgivable portion and will owe the whole amount back.
You are better off obtaining a different loan to pay the government back so you don't have to repay the entire amount.
There are products out there now, contact your local bank or credit union for options.
The BDC (Business Development Bank of Canada) have loan options where you can easily obtain up to $100,000 but again, will be paying for it monthly.
If you're able to pull this off before the end of December, you will be able to receive the forgiveness option and save $10,000 to $20,000.
If you are unable to obtain a loan from your bank or an alternative provider, you can expect to start paying monthly interest payments to the tune of 5%.
On a $40,000 loan, this equates to $2,000 a year in interest costs or $167 a month.
Now this might not sound like it's going to break the bank but this is only the interest payment the remaining balance outstanding so you have to increase your payments to compensate.
The deadline for for repayment is December 31, 2025, which is 24 months.
So, 40,000÷24 months = $1,667 + interest charges.
How many businesses can afford an extra $1,800 monthly payment right now?
👉 Learn more, call Jessi at 604 716 6474, email [e-mail] or schedule a time to chat here: https://calendly.com/jessirealestate