The Canada Emergency Business Account (CEBA) was introduced at the height of the pandemic to help out small businesses forced to close or limit their operations due to public health measures. The program offered interest-free loans backed by the federal government. A business could apply for up to $60,000 through the program — up to $20,000 would be forgiven if the rest was repaid by a certain deadline. The original repayment deadline was the end of 2022. It was later extended to the end of 2023. Federal Government has CEBA Loan Repayment Deadlines Extended.
The repayment deadline for CEBA loans to qualify for this partial loan forgiveness is being extended by a couple of weeks, from Dec. 31, 2023, to Jan. 18, 2024, “recognizing that the end of December is a busy time for many Canadian businesses.”
Or, if businesses make a refinancing application with the financial institution that provided their CEBA loan by Jan. 18, 2024, the repayment deadline to benefit from the partial loan forgiveness extends until March 28, 2024.
When the initial extension was announced, the government said outstanding loans after the 2023 deadline would be converted to two-year term loans with a five per cent interest rate, starting on Jan. 1, 2024, with the loans due in full by Dec. 31, 2025.
Now, small businesses that are not in a position to pay back their CEBA loan in time to benefit from the partial loan forgiveness have until Dec. 31, 2026 to pay their loan back in full.
Contact Abdullah CPA for more Understanding.
