Reminder from ACTA: CEBA & RRRF loan deadline for forgivable portion is Jan. 18

ACTA is reminding travel agencies and independent advisors that the deadline is January 18 to access the partial loan forgiveness feature of CEBA loans and the Regional Relief and Recovery Fund (RRRF) loans.

In a Jan. 12 news release, ACTA said it "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.

The association says its efforts successfully resulted in a two-year extension of the repayment deadline. 

However, Finance Minister Chrystia 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, ACTA said. 

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.

READ MORE: Ottawa’s CEBA extension “falls short” of addressing financial strain, says TIAC

“We will continue to remain active on this important matter representing the interests of our travel agency and travel advisor members,” stated Wendy Paradis, ACTA's 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

CEBA was introduced during the pandemic to help small businesses who were forced to close or limit their operations due to public health restrictions.

The program offered interest-free loans backed by Ottawa, and the deadline to repay has already been extended several times.

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 January 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 five per cent 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. 

Agents that are unable to pay the outstanding amount by this date have until Dec. 31, 2026, to repay the entire balance of the contribution, ACTA says. 

The news is germane to PAX readers as many travel agencies, and travel advisors, accessed pandemic-era loans from the government during the pandemic.

Data released by ACTA last summer suggests that many travel pros who accessed loans are still carrying the debt and aren’t yet in a position to repay.

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 travel advisors contact their financial institution or accountant for the most accurate information that would pertain to their situation. 

For more info, visit the Government of Canada’s loan program website here.

Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.