CEBA Extensions by the Government of Canada

Yesterday, the federal government announced changes to the repayment terms for Canada Emergency Business Account (CEBA) loans (view the announcement)

To qualify for the forgivable portion of the loan (up to $20,000) a business must:

1. pay the full amount of a CEBA loan by January 18, 2024

OR

2. Have a refinance plan in place with the financial institution that provided their CEBA loan by March 28, 2024.

If neither of these conditions are met, businesses will be required to repay the full amount of their loan over two years with 5% interest by December 31, 2026. This new deadline of December 31, 2026, represents an extension of one year from the previous deadline to repay outstanding loan balances.

These changes also apply to CEBA-equivalent lending through the Regional Relief and Recovery Fund (RRRF); however, the details for how businesses can qualify for the forgivable portion of CEBA-equivalent loans provided through RRRF via refinancing by March 28th, remain unclear. Unlike CEBA loans provided through traditional financial institutions, loans accessed through RRRF were provided through government-funded entities such as Community Futures.

For more information, visit https://ceba-cuec.ca/