The federal government’s Canada Emergency Business Account (CEBA) program offered interest-free loans of up to $60,000 to small businesses and not-for-profits at the height of the pandemic, a program that several CWCF members participated in.
For eligible CEBA borrowers in good standing, repaying the balance of the loan on or before December 31, 2023 will result in loan forgiveness of up to 33% or $20k. Some CWCF members may face difficulties repaying the full required amount of the loan when it comes due. CWCF’s Tenacity Works Fund is developing a loan offering which may be helpful to affected worker co-ops in those circumstances.
The terms of the loans issued will vary on a case-by-case basis, and will depend on CWCF’s ability to obtain additional capital, e.g. from the government’s Social Finance Fund. Full terms will be announced in CWCF’s May newsletter.
Initial application deadline is July 31st, 2023. Interested parties are encouraged to apply as soon as possible by submitting a business plan to Executive Director Hazel Corcoran, cc: Communications and Member Services Manager Kaye Grant.
Being approved for a loan doesn’t mean that the co-op needs to take it right away; it could be taken at the end of the year. However, CWCF does not have the staff capacity to handle dozens of applications all at once. Thanks for your understanding.