Canada Emergency Business Account: Government extends repayment and partial loan forgiveness deadlines

On September 14, 2023, the Prime Minister announced extended deadlines for Canada Emergency Business Account (CEBA) loan repayments, providing an additional year for term loan repayment, and additional flexibilities for loan holders looking to benefit from partial loan forgiveness of up to 33 per cent.

• Sarah and Nick need to pay off their $40,000 CEBA loan, but are unable to pay the full amount in time to benefit from $10,000 in partial loan forgiveness. On January 19, 2024, their loan converts to a three-year term loan with five per cent interest per year. They will make monthly interest payments of around $167 per month, and will only be required to pay their principal amount just before the term loan repayment deadline of December 31, 2026.
• Doug applies for $40,000 in financing from the bank that provided his CEBA loan to pay off his $60,000 CEBA loan. He is unable to receive a response to his refinancing application by January 18, 2024. However, with the new refinancing extension, he has until March 28, 2024, to hear back from his bank and secure new financing to pay off his CEBA loan and benefit from $20,000 in partial loan forgiveness.

Financial institutions will contact CEBA loan holders directly regarding their loans.

The above changes also apply to CEBA-equivalent lending through the Regional Relief and Recovery Fund.

Associated links

• Canada Emergency Business Account (CEBA)
• January 12, 2022: Government extends loan forgiveness repayment deadline for the Canada Emergency Business Account