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Extended deadlines and repayment options for CEBA loans

Brianne Cabanayan Sep 26, 2023

On Sept. 14, 2023, the federal government announced extended deadlines for Canada Emergency Business Account (CEBA) loan repayments. There are three options for loan recipients, depending on ability to repay.

Have the funds to repay?

If you are able to make a repayment, you have until Jan. 18, 2024 (extended from Dec. 31, 2023) to repay your CEBA loan to qualify for partial loan forgiveness of up to 33 per cent ($10,000 for a $40,000 loan and $20,000 for a $60,000 loan). Contact your financial institution for instructions on how to make a payment towards your CEBA loan.

Don’t have the funds to repay?

Your financial institution may offer refinancing options. While your financial institution’s interest rates may be higher than the government refinance rate, this allows you to take advantage of the partial loan forgiveness and a potentially longer amortization period. Refinancing applications must be submitted at the same financial institution that provided the CEBA loan. To take advantage of this option, contact your financial institution as soon as possible.

If you submit a refinancing application by Jan. 18, 2024, but require a grace period to finalize payout of your CEBA loan, you can still qualify for partial loan forgiveness if the outstanding principal of your CEBA loan ⁠–⁠ excluding the amount of potential debt forgiveness ⁠–⁠ plus any applicable interest is repaid by March 28, 2024.

With no action, CEBA loan can become a term loan

If you do not repay your loan or submit a refinancing application by Jan. 18, 2024, your CEBA loan will convert to a term loan with full principal repayment due Dec. 31, 2026. From Jan. 19, 2024 to Dec. 31, 2026, an annual interest rate of 5 per cent will apply to the outstanding balance of your CEBA loan.

If you have any questions about the CEBA loan repayment extension, simply contact your Baker Tilly advisor.

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