CEBA

CEBA - Canada Emergency Business Account

The Federal Government designed the Canada Emergency Business Account (CEBA) program to help small business employers with their most pressing needs and to position the Canadian economy for recovery from the COVID-19 pandemic. The CEBA application deadline was June 30, 2021.  

All CEBA loans in good standing have the following repayment terms:

• 0% interest until January 18, 2024
• No principal payment required until January 18, 2024
• If the loan balance less the amount of potential debt forgiveness is repaid by January 18, 2024, the remaining loan balance will be forgiven provided that no default under the loan has occurred.

• For members who apply to refinance their CEBA loan by January 18, 2024, the repayment deadline to qualify for partial loan forgiveness includes a refinancing extension until March 28, 2024.

• If any loan balance remains outstanding after January 18, 2024 (including those eligible for the refinancing extension), the remaining loan balance will be converted to a 3 year term loan on January 19, 2024 at 5% annual interest with monthly interest only payments required until the full loan balance is due on December 31, 2026. 
• Entire loan balance must be repaid by December 31, 2026

All CEBA loans have the following terms of forgiveness:

If you borrowed $40,000 or less:

• 75% of the loan amount must be repaid by January 18, 2024 in order to receive loan forgiveness of the remaining 25% balance (maximum $10,000)

If you borrowed more than $40,000 and up to $60,000:

• 75% of the first $40,000 and 50% of amounts over $40,000 and up to $60,000 must be repaid by January 18, 2024 in order to receive loan forgiveness of the remaining balance (maximum $20,000)

If you fully repaid your original $40,000 loan, claimed $10,000 loan forgiveness, and thereafter received the $20,000 expansion:

• 50% of the expansion loan amount must be repaid by January 18, 2024 in order to receive loan forgiveness of the remaining 50% balance (maximum $10,000)