Is the CEBA loan repayment hanging over you or your clients’ heads like a dark cloud?
There may be light ahead if President and CEO of the Canadian Federation of Independent Business (CFIB), Dan Kelly, has any influence on the Federal Budget decisions in March (or it could just be a ‘stab in the dark’ – lol).
While COVID restrictions have been lifted, it doesn’t mean it’s “business as usual.” After leading the charge to create and improve Canada’s major COVID-19 support programs, the CFIB is now calling on the government to ensure hard-hit small businesses will get the debt relief they need by calling for more time and a higher percentage forgiven.
Over 900,000 Canadian small businesses had to take on a CEBA loan to survive two years of lockdowns and business restrictions. And CEBA loans form just a part of the average $110k in COVID-related debt inherited by two-thirds of Canada’s small business owners.
Only
13%
of small business have been able to fully repay their CEBA loan
48%
of businesses are making normal sales.
58%
of small business owners are carrying pandemic-related debt.
CFIB is advocating that for a strong and lasting economic recovery, the federal government must establish a plan to help small firms reduce their COVID debt burdens.
If you want to add your voice, fill out the CFIB petition here.
Because the wheels of change may turn too slowly for the CFIB to change the Government’s CEBA repayment deadline of December 31, 2023, a strong PLAN A is what small business owners need to consider NOW.
PLAN A:
Help Your Clients Save Up To $20k On CEBA
As long as business owners repay the minimum (which is $40k if they borrowed $60k) by December 31, 2023, they’re eligible to be forgiven for the last $20k of the CEBA loan.
IF THEY CAN’T PAY THE MINIMUM, a short-term loan could be their best option to save the $20k, and we have a few excellent loan programs. This is a fantastic way to help your clients – and you will earn commission on funded referrals!
There are a variety of unsecured loan options with flexible payment terms available.
SHORT TERM, UNSECURED LOAN – UP TO $500K
- Unsecured loan amount of 100% – 125% of monthly gross sales up to $500k. I.e., if their monthly GR averages $50k, they’ll get $50k to $62.5k
- Approvals in 24 – 48 hours, funded in 5 – 7 days
- Interest: 17%+ (open loan, so can be paid back early)
- Term: 4 to 15 months
- Terms can be extended after every renewal
- Once they reach 35% payback, they can top up again (as long as they pay on time)
- No lender or legal fees
- Cost of borrowing is a 100% tax write off
MINIMUM REQUIREMENTS
- 6+ months in business
- Credit Score 600+
- 10k+ monthly gross revenue
- Min 4 deposits every month
- No NSFs in the last 3 months – ideally 6 months.
- Prohibited industries: Real estate agents, brokers, etc.
WHO THIS LOAN IS BEST SUITED FOR?
- Those who can’t get bank loans due to credit, net worth, or liquidity.
- Great for bridge financing (i.e., while they wait to get funded by a bank loan, but need funds ASAP, so they pay off this loan when they get funded by the bank).
- Many use it as a line of credit because they can top up after 35% payback.
- As a stepping stone for a bank loan they don’t yet qualify for to boost revenue so that they’re eligible for a top-tier bank loan in a year or two.
HOW TO APPLY OR SEND REFERRALS?
Drop us a line or email your advisor at PFG Financial. We prequalify businesses and hold their hand through the application process. If there’s a better loan option with a lower interest rate, we always point our clients in the right direction!
OR
CLICK THIS TO SEE WHAT YOU QUALIFY FOR IN 2 MINUTES!
Because PFG Financial is dedicated to helping businesses not just survive but thrive, we welcome every opportunity to be of service, and will continue to keep you informed of the latest news and resources.
