DENTAL DIGEST The Canada Emergency Business Account (CEBA) program offered interest-free loans to small businesses affected by closures during the COVID-19 pandemic, through financial institutions across Canada. The repayment deadline for eligible CEBA loan holders to qualify for partial loan forgiveness (up to 33%) was extended to January 18, 2024. However, if a CEBA loan remained outstanding after that date, it would convert to a non-amortizing term loan with full principal repayment due by December 31, 2026. CEBA loan holders that submitted a refinancing loan application to their financial institution by January 18, 2024, but require a grace period to finalize the payout of their CEBA loan, may qualify for partial loan forgiveness, if the outstanding principal of their CEBA loan is repaid by March 28, 2024. According to CEBA, if a small business is unable to repay by the deadlines, CEBA will review circumstances on a case-by-case basis and try to establish a payment arrangement or repayment plan tailored to the loan holder’s ability to repay. CEBA Program Loan Repayment Deadlines SmileDirectClub Abruptly Shuts Down On December 8, 2023, the direct-to-consumer (DTC) teeth aligner company SmileDirectClub (SDC) announced it was shutting down its global operations, including in Canada. The sudden closure came a few months after SDC filed for Chapter 11 bankruptcy protection in the US. SDC’s primary business was offering DTC teeth aligners, shipped directly to customers. Existing clients were informed that SDC’s customer support line was no longer available, despite some aligners still needing adjustments or touch-ups. On its website, SDC advised: “If you wish to continue treatment outside of our platform, please consult your treating doctor or your local dentist with any questions around future aligner treatment.” For any SDC clients seeking refunds, the company said it would have more information “once the bankruptcy process determines next steps.” In a December press release, the American Dental Association (ADA) stated: “In light of recent news reports concerning a DTC manufacturer and marketer of teeth aligners, the ADA reaffirms its policy which strongly opposes offers of DTC dentistry because of the potential for irreversible harm to individuals, who are treated as ‘customers’ rather than as patients. The ADA’s primary concern around DTC dentistry has always been patient safety, first and foremost.” Any questions on the specific details of loan forgiveness eligibility, repayment options or refinancing should be directed to the financial institution that provided the CEBA loan. See ceba-cuec.ca or contact the CEBA Call Centre at 1-888-324-4201. Canada Emergency Business Account (CEBA) Repayment Deadlines 15 Issue 1 | 2024 |
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