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 has now 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 has 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 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 flexibilityto 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 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 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.
For an FAQ and more information, please see the Government of Canada Website or reach out
to us directly for any further questions.
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