The Canada Emergency Business Account (CEBA) provided interest-free loans of up to $60,000 to eligible small businesses and not-for-profits to help cover their operating costs during a period where their revenues were temporarily reduced. The Government of Canada closed the program to any new applications.
Canada Emergency Business Account
The CEBA program was open for applications from April 9, 2020, to June 30, 2021. It provided more than $49 billion in liquidity to over 898,000 Canadian businesses.
On January 12, 2022, the Government of Canada announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness was extended from December 31, 2022, to December 31, 2023, for all eligible
borrowers in good standing.
This extension supported short-term economic recovery and offer greater repayment flexibility to small businesses and not-for-profit organizations, who faced challenges due to the pandemic. Repayment on or before the new deadline of December 31, 2023, would result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000). Outstanding loans could 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 also announed that the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund was extended to December 31, 2023.
For an FAQ and more information, please see the Government of Canada Website.
Have questions? Concerns? We are here to help. Give us a call today, and someone will get back to you.
