Canada Emergency Business Account (CEBA) – Repayment Terms

Updated as of September 2023:

Program Repayment Deadlines

  • The forgiveness repayment date has been extended to January 18, 2024 for eligible CEBA loan holders in good standing.
  • More details about loan repayment and forgiveness are provided in the FAQs on the next tab.
  • Loan holders that did not qualify for the new extended term continue to be required to repay the outstanding amount of their CEBA Loan(s), in full, by December 31, 2023.

Please refer to https://ceba-cuec.ca/ for additional details.

If you received a CEBA loan, please be aware of the following:

  • The forgiveness repayment date has been extended to December 31, 2023 for eligible CEBA loan holders in good standing. Applicants that qualified for the new extended term have been contacted by their financial institution with details regarding the new repayment date.
  • For eligible CEBA borrowers in good standing, repaying the balance of the loan on or before December 31, 2023 will result in loan forgiveness of up to 33 percent (up to $20,000).

The full amount of the loan must be repaid by December 31, 2023 in order to receive the loan forgiveness portion. If the full amount is not paid by the deadline, there is no loan forgiveness.

Eg. For a $40,000 loan, $30,000 must be paid back by the deadline in order to receive the $10,000 in loan forgiveness.

What are the repayment terms for the $40,000 and $60,000 loan and the $20,000 expansion?

All applicants that meet CEBA eligibility criteria will have the following repayment terms:

Interest:

0% per annum interest until December 31, 2023

5% per annum interest starting on January 1, 2024; interest payment frequency to be determined by your financial institution

Repayments & Maturity:

No principal repayment required before December 31, 2023

If loan remains outstanding after December 31, 2023, only interest payments required until full principal is due on December 31, 2025

Debt Forgiveness:

If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by December 31, 2023, the remaining principal amount will be forgiven, provided that no default under the loan has occurred

What are the terms of the forgiveness?

All applicants that meet CEBA eligibility criteria will have the following terms of forgiveness:

If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2023 will result in loan forgiveness of 25 percent (up to $10,000).

Example 1:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2023: $30,000
Available Forgiveness: $10,000

Example 2:
Maximum Amount Borrowed: $20,000
Amount Repaid By December 31, 2023: $15,000
Available Forgiveness: $5,000

Example 3:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2023: $25,000
Available Forgiveness: $0

Additional information is available on the CRA’s CEBA website: https://ceba-cuec.ca/

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