As announced at the start of 2022, the federal government recently made official the deferral of the refundable portion of the CUEC (Canadian Business Emergency Account) to December 31, 2023, rather than December 31, 2022.
In doing so, the loan holders received a letter from their financial institution announcing the postponement to 2023 of the repayment deadline to benefit from the subsidy. In some cases, the letter received was confusing in the way it was explained, but generally, the important thing to remember is that there is no action to be taken, and that the deferral is automatic until next year.
We remind you that the CUEC loan (excluding the subsidy) must be repaid in full ($30,000 or $40,000, as the case may be) by December 31, 2023, in order to qualify for the subsidy. If the loan is not repaid by December 31, 2023, there will be no subsidy, and interest of 5% p.a. will start to be charged on the remaining balance. The loan remains interest-free until December 31, 2023.
If you have any questions about existing corporate programs, please contact our expert Gustave Legault-Brousseau, CPA Director – Consulting Services at Amyot Gélinas at 819 326-3400, ext. 3472. Toll-free: 1 877 326-3400.
