Extension of Repayment Deadline & Partial Loan Forgiveness for Canada Emergency Business Account (CEBA).
CEBA was initiated by the Canadian Federal government in response to the Covid-19 pandemic, aiming to provide financial support to small businesses and non-profit organizations. It offered partially forgivable loans, with a maximum amount of $60,000, available from April 9, 2020, through June 30, 2021. Originally, the repayment deadline was set for December 31, 2023.
As of September 14, 2023, the Federal government has decided to extend the repayment deadline for CEBA loans. Those who repay or seek to refinance their CEBA loans by January 18, 2024, will be eligible for partial loan forgiveness, receiving $10,000 of forgiveness for a $40,000 loan and $20,000 of forgiveness for a $60,000 loan.
Starting from January 19, 2024, all other CEBA loans will be converted into interest-bearing loans with an annual interest rate of 5%. These loans will be payable on a monthly basis, with a final repayment deadline of December 31, 2026.
For the official announcement from the Government of Canada, please visit this link: Official CEBA Repayment Extension and Partial Loan Forgiveness Announcement.
If you require further information regarding the CEBA repayment deadline or partial loan forgiveness, please don’t hesitate to contact your RSW advisor.