Repayment Deadline for CEBA Loans

Repayment Deadline for CEBA Loans: What are the Benefits?

The Canadian Government took the much-need initiative in 2020 to counter the challenges of COVID-19. Due to the lockdowns, the local businesses were facing tough economic situations. So to provide some relief to such businesses, the Government introduced the Canada Emergency Business Account (CEBA). It’s a financial support program that provides interest-free loans to small businesses to help them cover their operating costs during the lockdowns. The program was available from April 9, 2020, to June 30, 2021. Initially, the deadline for (CEBA) loan repayments was the end of 2022. The Government extended it to December 31, 2023. But once again the Government has extended the deadline to January 18, 2024. 

In this article, we will highlight the benefits of CEBA loan holders. So keep reading to find out how this initiative will benefit you.

KEY FEATURES OF THE CEBA (Canada Emergency Business Account)

CEBA was a great initiative. It aimed to ease the economic and financial conditions of eligible businesses. The interest-free loans were intended to help small businesses and not-for-profit organizations pay non-deferrable expenses. Here are the key features of the Canada Emergency Business Account program.

Loan Amount:

The program provided loans of $40000 to $60000 to small businesses and not-for-profit organizations. According to some data, the CEBA program paid about $49 billion in loans. 


The businesses weren’t supposed to pay interest on loans till a certain date. So if your business had paid the loans on time, you wouldn’t have to pay the interest. However, if you fail to pay on time, the loans could be converted into a term loan with a low-interest rate.

Loan Forgiveness

Loan forgiveness was the best feature of the CEBA program. According to this feature, loan holders could become eligible to have up to 30% of the loan amount forgiven if they could pay up to 70% of the loan on time. 

What was the Deadline of Canada Emergency Business Account Loan Repayments?

The Government introduced the CEBA program on April 9, 2020. The deadline for loan repayments was December 2022. But later, the Government extended the date to December 31, 2023. Now on September 14, 2023, the deadline has been extended to January 18, 2024. The extension provides an additional year for term loan repayment. The Government extended the deadline considering that the end of the year is a busy time for businesses in Canada.

Benefits of the Extension for Loan Holders

The extended date of repayments will benefit the loan holders in various ways. Here are some examples how CEBA loan holders can benefit from the new repayment deadline. 

  • The loan holders can get a refinancing extension on loan forgiveness until March 28, 2024.
  • Their outstanding loans will convert into three-year term loans. It means the loan holders could have time to pay the loans till December 31, 2026. The loan holders would have to pay a five % interest rate on the loan. Before this extension, the deadline for the outstanding loan with interest was December 31, 2025. 
  • The extension can result in loan forgiveness for loan holders of $10,000 for a $40,000 loan and $20,000 for a $60,000 loan amount if they apply for refinance before January 18, 2024.

Final Notes:

The Canada Emergency  Business Account was a much-needed economic intervention. It helped businesses that faced difficult economic conditions during the downturn. The Canadian government has now extended the deadline again. The new repayment deadline is February 18, 2024. A deadline extension has also been made for interest-bearing loans from December 31, 2025, to December 31, 2026. Those who are unable to raise sufficient funds will be granted an extension and will have some additional time to repay the loan.

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