Canada’s banks are offering interest free loans up to $40,000 to small and medium-sized businesses.
The Canadian Bankers’ Association said that the loans will be made under the federal government’s “Canada Emergency Business Account” (CEBA) program, which enables qualifying small businesses to apply online through their current lenders for the loans.
A quarter of each loan is forgivable if repaid by December 31, 2022. Scotiabank told Reuters news agency that it has so far approved interest free loans for 3,750 customers, valued at over $150 million.
In March, Canada’s six largest banks - Royal Bank of Canada, TD Bank, Scotiabank, Bank of Montreal, CIBC and National Bank of Canada - announced a coordinated effort to offer mortgage relief to customers suffering pay disruptions as businesses grind to a halt.
