The CEBA Loan Repayment Deadline is approaching – ensure you qualify for loan forgiveness

In 2020, the Canadian government launched the Canada Emergency Business Account (CEBA) to support small businesses and non-profit organizations impacted by the COVID-19 pandemic. This initiative offered interest-free loans of up to $60,000, with a portion of the loan being forgivable if the repayment terms are met. As we approach the end of the 2023, it’s crucial for CEBA loan recipients to be aware of the upcoming repayment deadlines to benefit from partial loan forgiveness and avoid additional interest charges.

Recently, the government extended the repayment deadline to January 18, 2024. Financial institutions holding CEBA loans should have contacted each borrower to inform them of the extension to the repayment deadline. If you have not received such a notification from your lender, you should contact them to confirm your specific repayment deadline.

Key Deadlines to Remember

January 18, 2024: If you’re eligible for the interest-free grace period and partial loan forgiveness, this is your deadline. The government has stated there will be no additional extensions.

December 31, 2026: The ultimate deadline for all outstanding CEBA loans and applicable interest, with an annual interest rate of 5% on term loans.

If you require a new non-CEBA loan in order to repay the CEBA loan, you may be able obtain an extension of the January 18, 2024 deadline until March 28, 2024. Such extension is only possible if the application for the new non-CEBA loan is submitted before January 18, 2024 and the CEBA loan, as well as any interest from January 18, 2024, is repaid in full by March 28, 2024.

The government also announced that the repayment deadline to qualify for partial forgiveness for the CEBA-equivalent lending through the Regional Relief and Recovery Fund (RRRF) is extended to March 28, 2024. 

Loan Forgiveness Details

  • Only the non-forgivable portion of your CEBA loan needs to be repaid by the January 18, 2024 deadline.
  • Forgiveness of any loan amount is dependent on full repayment. Repaying only a portion of the CEBA loan will not result in any amount being forgiven.
  • Forgivable portion: 25% on amounts borrowed up to $40,000 and 50% on amounts between $40,000 and $60,000.
  • Example calculations:
    • $40,000 CEBA Loan: Repayable amount is $30,000.
    • $60,000 CEBA Repayable amount is $40,000.

Next Steps

To begin the repayment process or for more detailed guidance, contact the financial institution that issued your CEBA loan. They can provide specific instructions and support tailored to your situation.

If you have further questions, the official CEBA website has additional information and answers to frequently asked questions here –


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