Updated 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.
Originally, organizations could qualify for loan forgiveness if stated repayments were made by December 31, 2022. On January 12, 2022, it was announced that eligible CEBA borrowers in good standings, 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).
If you qualify for the new extended term, your financial institution will contact you and provide details regarding the new repayment date. CEBA eligibility criteria validations have been completed for all borrowers and the results of these validations are final.
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
Should you have any questions, please do not hesitate to contact us or your bank representative for further details