Sorry to interrupt your summer. BUT …
December 31st is coming.
And this year, it’s not just New Year’s Eve.
It’s the CEBA loan repayment due date (if you took one) in order to qualify for any of the loan forgiveness. (You do want to take advantage of that, right?)
(Remember the Canada Emergency Business Account from the early days of The Pandemic? It was a lifeline that many coaches, consultants and creatives needed, but now it’s time to pay the piper. If you borrowed 40K, you need to repay 30K to get the 10K forgiven. If you got the 60K loan, you need to come up with 40K and the balance is forgiven.)
(Right now, I haven’t heard anything indicating that the government will once again punt the deadline down the road, and I wouldn’t count on that happening.)
Any amount outstanding will be converted into a 2-year loan at 5% interest.
You’ve got just under 5 months to take care of this – and that includes making payments over that time, or putting aside funds for a lump sum payment some time during your winter break.
If you’re looking at that loan balance and freaking out (and I know that some people are), check with your bank today – several are offering their clients loans or lines of credit to take care of the debt. (I don’t get any finder fees for this, but it’s definitely something worth doing now).
(And yes, I’ve also received a few cold email pitches from various finance companies offering help as well.)
I can hear you from here “Aw c’mon Lawrence. September isn’t here yet. Why are you ruining the summer mood?”
Because I’d rather not spoil your New Year’s Eve? Or because I’m an AccountingWizard who wants to make sure that your assets are covered? Because I care about you, the people who read my stuffs?
(In case you’re wondering, it’s all of the above).
You can get more info at the Government of Canada’s website at https://ceba-cuec.ca/
PS I can help you with cash flow forecasting and budgeting, not just now with CEBA, but any time. It’s one of the things that I do. Need some help with that? Give me a shout.