CEBA Terms and Key Dates
/General Program Information
The Government of Canada provided the Canada Emergency Business Account (CEBA) to support Canadian businesses adversely affected by COVID-19 through loans up to $60,000. Until January 20, 2022, your loans are most likely funded as a revolving line of credit, after which date the outstanding balance will be converted to a term loan.
Organizations may qualify for loan forgiveness if stated repayments are made by December 31, 2022.
Key Dates
January 20, 2022: Revolving line of credits are converted to term loans and you will no longer be able to access these funds. Your bank should be applying a 0% interest charge until December 31, 2022 and no principal payments are required during this time.
December 31, 2022:
For loans with a $40,000 limit – If 75% of the maximum balance is paid by this date, loan forgiveness of 25% will apply.
For loans with a $60,000 limit – If you repay $40,000 of the $60,000 by this date, loan forgiveness of $20,000 will apply.
25 percent on the first $40,000; plus
50 percent on amounts above $40,000 and up to $60,000.
For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid.
Note: some financial institutions may record your $40,000 loan and $20,000 expansion as two separate loans. For the purposes of loan forgiveness, borrowings and repayments on both loans will be aggregated.
January 1, 2023: Interest begins to apply to any outstanding loan amount
December 31, 2025: The entire loan and all accrued and unpaid interest becomes due and payable
Should you have any questions, please do not hesitate to contact us or your bank representative for further details.