Chris Pickard
The Canada Emergency Business Account (CEBA) was a COVID support measure which offered interest-free, partially forgivable loans of up to $60,000 for Canadian small businesses and not-for-profit organizations. As of September 14, 2023, the Federal Government has introduced certain adjustments, including a minor extension to the partial loan forgiveness repayment date.
- Partial loan forgiveness, between 25 and 33% depending on the amount borrowed, would apply if repayment is made on or before January 18, 2024.
- For CEBA loan holders who make a refinancing application with the financial institution that provided their CEBA loan prior to January 18, 2024, the repayment deadline to qualify for partial loan forgiveness now includes a refinancing extension until March 28, 2024.
- Effective January 19, 2024, outstanding loans, including those that are captured by the refinancing extension, will convert to three-year term loans, subject to interest of five percent per annum.
For inquiries regarding CEBA loan balance and repayment details, contact the financial institution that provided the loan. For questions related to tax implications of the CEBA loan forgiveness or other Canadian business advisory, tax and accounting matters, reach out to a Bateman MacKay Business Advisor.
XLNC TFG Newsflash| October 2023