ACTA is reminding agencies and independent travel advisors that the government deadline to access the partial loan forgiveness feature of CEBA loans and the Regional Relief and Recovery Fund (RRRF) loans is 18JAN 2024.
As Open Jaw reported, ACTA advocated extensively for more time for travel agencies and advisors to access the forgivable portion of CEBA and RRRF loans and for the ability to negotiate more flexible payment terms directly with the institutions that them.
While ACTA’s efforts resulted in a two-year extension of the repayment deadline - Finance Minister Freeland’s staff made it clear in a meeting last Fall that the government is unwilling to do more on the forgivable portion.
Considerable pressure remains on the government to act on the forgivable provision from stakeholders, media, Canada’s premiers, and ACTA itself.
“We will continue to remain active on this important matter representing the interests of our travel agency and travel advisor members,” said Wendy Paradis, ACTA President.
“However, it is worth remembering that Canada did more to provide financial relief to businesses during the pandemic than any other country.”
CEBA Loans
The repayment deadline for eligible CEBA loan holders to qualify for partial loan forgiveness was extended to 18JAN 2024.
Additionally, CEBA loan holders that require a grace period to finalize the payout of their CEBA loan can still qualify for partial loan forgiveness if the outstanding principal of their CEBA loan (other than the amount of potential debt forgiveness) is repaid by 28MAR 2024 – and they submit a refinancing loan application by 18JAN 2024 to the financial institution that provided their CEBA loan.
As of 19JAN 2024, outstanding loans, including those that are captured by the refinancing extension, will convert to three-year term loans, subject to interest of 5% per annum, with the term loan repayment date 31DEC 2026.
RRRF Loans
The repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through Regional Relief and Recovery Fund (RRRF) is also 18JAN 2024. If unable to pay the outstanding amount by this date, loan holders have until 31DEC 2026, to repay the entire balance of the contribution.
ACTA encourages travel agencies and advisors with outstanding CEBA and RRRF loans to review their situation now and consider the actions they need to take, given the upcoming deadlines.
"ACTA recommends reaching out to your financial institution or your accountant for the most accurate information that would pertain to your personal situation."
For more information, visit the Government of Canada’s loan program website.
