The CFIB hasn’t let go of the government’s arm when it comes to talking about easier repayment terms for your CEBA loan. So, in our opinion, hang tight and don’t jump at the first chance to refinance your loan just yet. Let the CFIB keep at it and we might see a more forgiving solution.
Remember, any unpaid CEBA loans as of January 1, 2024, will turn into a 2-year loan with a 5% interest rate.
We’ve been hearing that many of you are getting ‘too good to pass up’ offers to switch your CEBA loan over to banks or other financiers. Now, while some of you might need to bite the bullet to keep your cash flowing, don’t go rushing in headfirst. There’s a bunch of funding options to consider before you sign on the dotted line.
Here’s the thing, usually, the easier the cash comes, the heavier the interest you’ll end up paying down the line. Here are a few of the options out there CFIB suggests:
Business Development Bank (BDC) – They have a soft spot for small businesses needing funds and can often be more flexible than your average lender.
Fintech/Online lenders – The internet is full of these guys. But be careful, not all that glitters is gold.
Crowdfunding – A lot of folks chipping in small amounts can sum up to a whole lot.
Venture Capital/Angel Investors – They’ll lend to businesses that show promise but usually want a piece of your business in return.
Credit Unions – These folks know their local business scene well and are often more willing to lend than big banks.
No matter where the cash comes from, you’ll be signing a contract. Make sure you know what you’re signing up for; you don’t want to end up in a sticky situation.
Get legal advice if you’re unsure. Check the contract for sneaky clauses and never accept verbal changes.
The CFIB is encouraging everyone to reach out to their Member of Parliament to ask for an extension here:
https://www.ourcommons.ca/members/
Credit Card Class Action Payments
Here’s some exciting news; the Credit Card Class Action Payments are coming!
Here’s what you small business folks need to know:
Electronic transfers will start rolling out the week of May 21-26, 2023.
And, cheques will hit the mail around May 31-June 2, 2023.
For you medium-sized business owners, hold tight. Your claims are still under review.
| Key Takeaways |
|---|
| CFIB is still negotiating with the government for easier repayment terms on your CEBA loan. Don't rush to refinance your loan just yet. |
| Any unpaid CEBA loans as of January 1, 2024, will become a 2-year loan with a 5% interest rate. |
| Consider various funding options before signing any refinancing deals. Remember, easy money often means heavy interest. |
| Options include BDC, Fintech/Online lenders, Crowdfunding, Venture Capital/Angel Investors, and Credit Unions. |
| Be sure you understand the contract you're signing. Consider legal advice if you're unsure and never accept verbal changes. |
| Contact your local MP about CEBA repayment terms. |
| Credit Card Class Action Payments are coming: Electronic transfers will roll out May 21-26, 2023, and cheques will be mailed May 31-June 2, 2023. |
| Claims for medium-sized businesses are still under review. |