TORONTO — ACTA is reminding travel agencies and independent travel advisors about the Jan. 18 deadline to access the partial loan forgiveness feature of CEBA loans, and the Regional Relief and Recovery Fund (RRRF) loans.
ACTA’s advocacy efforts helped to secure a two-year extension of the repayment deadline. 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 who provided them.
However as ACTA President Wendy Paradis notes, Finance Minister Freeland’s staff made it very clear in a meeting last fall that the government is not willing to do more on the forgivable portion.
Paradis adds that there remains considerable pressure on the government to act on the forgivable provision from stakeholders, media, and Canada’s premiers, as well as from ACTA.
“We will continue to remain active on this important matter representing the interests of our travel agency and travel advisor members,” said Paradis. “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 Jan. 18, 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 March 28, 2024 – and they submit a refinancing loan application by Jan. 18, 2024 to the financial institution that provided their CEBA loan.
As of Jan. 19, 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 Dec. 31, 2026.
RRRF LOANS
The repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through Regional Relief and Recovery Fund (RRRF) is also Jan. 18, 2024. People who are unable to pay the outstanding amount by this date have until Dec. 31, 2026, to repay the entire balance of the contribution.
Paradis says travel agencies and advisors with CEBA and RRRF loans outstanding are encouraged 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, ACTA recommends checking out the Government of Canada’s loan program website here.
