Government Lending – Canada Emergency Business Account
The Federal Government has announced enhance credit funding.
In talking to small business owners utilizing this program is not their number one priority. Most business owners fear to get into more debt and this is a big uncertainty to them. If they get through this, figuring out how to pay that debt off afterwards is just as much of a concern to them.
This is, however, an opportunity as a business owner you should be considering, especially since $10,000 loan forgiveness is available (no firm details on what available is) if $30,000 is paid back by December 31, 2022.
$40,000 government-backed loan to help business owners with cash flow available through your financial institution where you bank as a business owner.
0% interest until Dec 31, 2022.
No principal payments unless you have not paid off the loan by Dec 31, 2022.
At that time payment along with 5% interest will begin the full balance must be paid off by December 31, 2025 Loan Criteria...
In 2019 your payroll must have been between $50,000 and $1,000,000
You agree to use the funds for paying operating expenses that cannot be deferred.
Some examples are rent, insurance, property tax, utilities, payroll etc.
You can only apply for this loan at one financial institution.
You will also most likely be contacted post-funding by a government agent as well you need to continue to operate your business or will resume your business options once COVID 19 ends.