On January 12, 2022, the Department of Finance announced that the repayment deadline for the Canada Emergency Business Account (CEBA) loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023.
Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).
Loans still outstanding after the deadline will convert to two-year term loans with interest of 5 per cent per annum commencing on January 1, 2024, with the loans fully due by December 31, 2025.
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 December 31, 2023.
“As Omicron has reminded us, we are still living in a pandemic. Our government understood, from the outset, that we had to put in place unprecedented measures to meet this unprecedented challenge. By providing small businesses with additional time to repay their loans and still have partial loan forgiveness, affected businesses and workers will continue to have the support they need to get through the pandemic.”
– The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Read the Department of Finance’s full statement here.
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