CEBA Loan Repayment Deadlines and CRA Guidance
Certain Canada Emergency Business Account (CEBA) loans are subject to repayment deadlines that affect eligibility for partial loan forgiveness. Based on publicly available government information, repayment of the outstanding balance by January 18, 2024 may allow eligible borrowers to retain a forgivable portion of up to $20,000, depending on the original loan amount and program terms.
Government guidance indicates that businesses that apply for refinancing with a financial institution by January 18, 2024 may qualify for an extension of the forgiveness repayment deadline until March 28, 2024, subject to program conditions.
Key refinancing extension considerations:
There is no standardized documentation requirement to demonstrate that a refinancing application was submitted by January 18, 2024.
Eligibility for the extension may still apply even if a refinancing application is declined, provided the CEBA account remains in good standing.
During the extension period, interest may accrue at a rate of 5%, as outlined in program terms.
Application processes and requirements may vary by financial institution.
For those unable to repay or borrow by January 18, 2024:
According to program information, CEBA loans that are not repaid or refinanced by the applicable deadline may no longer qualify for partial loan forgiveness. In such cases:
The outstanding balance may convert to a term loan.
Interest may accrue at 5%.
Repayment may be permitted over a period extending to December 31, 2026, subject to program terms.
Disclaimer: The information provided on this page is for general informational purposes only and is based on publicly available government sources. It does not constitute tax, financial, or business advice and should not be relied upon as such. Program terms, deadlines, and administrative policies are subject to change.
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