Canada Emergency Business Account (CEBA): Repayment Deadline
In September 2023, the Canadian Government has announced the following:
There has been an extension to repay the CEBA loan, from December 31, 2023, to January 18, 2024.
For CEBA loan holders who make a refinancing application with the financial institution that provided their CEBA loan by January 18, 2024, the repayment deadline to qualify for partial loan forgiveness now includes a refinancing extension until March 28, 2024.
This means, as long as a refinancing application has been received by the financial institution by January 18, 2024, the forgivable portion can still be forgiven if the non-forgivable portion is then repaid by March 28, 2024.
For loans where the non-forgivable portion cannot be repaid or refinanced, a term loan will be created at 5% interest, with an extension of interest only payments to December 31, 2026 if a loan refinancing application has been made before January 18, 2024.
It has been noted that financial institutions will contact CEBA loan holders directly regarding their loans, but it would be prudent to reach out to your advisor to discuss repayment and options.
There have been various petitions and requests to ask for extensions to the repayment, alternative options to extend repayment of the non-forgivable portion, and complete forgiveness of the loans. However, nothing to date has been confirmed, and the above deadlines still hold.
If you have any questions regarding the CEBA loan, please feel free to reach out to our offices to discuss.
For more information and updates on the repayment, please visit: