The federal government has confirmed there will not be a third extension for repayment of loans taken under the Canada Emergency Business Account. The choice, however, is not between paying in full and going under. Businesses can forgo the partial loan forgiveness on offer (up to $20,000) and continue paying back the loans at an advantageous interest rate of five percent.
They can also refinance the loans through a financial institution. That will usually mean a significant increase in interest rates, but it allows the business to qualify for partial forgiveness. “No matter how you slice up percentages or dollars, you know, the simple math is you end up way ahead if you can repay,” David Gens, founder and CEO of Vancouver financial tech firm Merchant Growth, told CBC News.