Government of Canada Extends Loan Forgiveness Repayment Deadline for the Canada Emergency Business Account (CEBA)

Important Announcement: Government Extends Loan Forgiveness Repayment Deadline for the Canada Emergency Business Account (CEBA)

News Release – Department of Finance Canada

Wednesday, January 12th, 2022

The Canada Emergency Business Account (CEBA) program has provided interest-free, partially forgivable loans to nearly 900,000 small businesses and not-for-profit organizations to help them navigate the pandemic and remain resilient. However, the Omicron variant has delayed the recovery for businesses in many parts of the country.

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Mary Ng, Minister of International TradeExport PromotionSmall Business and Economic Development, announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.

This extension will support short-term economic recovery and offer greater repayment flexibility to small businesses and not-for-profit organizations, many of which are facing continued challenges due to the pandemic. 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).

Outstanding loans would subsequently 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 is also announcing that the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund is extended to December 31, 2023.

Read the full press release – https://www.canada.ca/en/department-finance/news/2022/01/government-extends-loan-forgiveness-repayment-deadline-for-the-canada-emergency-business-account.html

Learn more – https://ceba-cuec.ca/

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