CEBA

CEBA - Canada Emergency Business Account

The Federal Government designed the Canada Emergency Business Account (CEBA) program to help small business employers with their most pressing needs and to position the Canadian economy for recovery from the COVID-19 pandemic. The CEBA application deadline was June 30, 2021.  

All CEBA loans have the following repayment terms:

• 0% interest until December 31, 2023
• no principal payment required until December 31, 2023
• If the loan balance less the amount of potential debt forgiveness is repaid by December 31, 2023, the remaining loan balance will be forgiven provided that no default under the loan has occurred.
• If any loan balance remains outstanding after December 31, 2023, the remaining loan balance will be converted to a 2 year term loan on January 1, 2024 at 5% annual interest with monthly interest only payments required until the full loan balance is due on December 31, 2025.
• entire loan balance must be repaid by December 31, 2025

All CEBA loans have the following terms of forgiveness:

If you borrowed $40,000 or less:

• 75% of the loan amount must be repaid by December 31, 2023 in order to receive loan forgiveness of the remaining 25% balance (maximum $10,000)

If you borrowed more than $40,000 and up to $60,000:

• 75% of the first $40,000 and 50% of amounts over $40,000 and up to $60,000 must be repaid by December 31, 2023 in order to receive loan forgiveness of the remaining balance (maximum $20,000)

If you fully repaid your original $40,000 loan, claimed $10,000 loan forgiveness, and thereafter received the $20,000 expansion:

• 50% of the expansion loan amount must be repaid by December 31, 2023 in order to receive loan forgiveness of the remaining 50% balance (maximum $10,000)