Canada Emergency Business Account (CEBA) Loan Repayment Deadline is January 18, 2024.

November 3, 2023

Updated November 20, 2023

In September, the federal government announced extensions of the key dates for CEBA loan repayment. Initial media headlines led with the longest extension, not the most important one.  Relying on the headlines could be an expensive error.

First, the end of the interest free period is extended to January 18, 2024.  If you have not repaid your CEBA loan by this date, then interest at 5% applies going forward.

Second, the repayment deadline to qualify for partial loan forgiveness is extended to January 18, 2024.  This is the most important date.  Meet this deadline and you could save $10,000 on a $40,000 loan, or $20,000 on a $60,000 loan.  Miss it, and you must repay the full amount of the loan.  There are other conditions you must meet to qualify for partial loan forgiveness.  Your financial institution should have contacted you already if you are eligible.

Third, the deadline for repayment of the full loan plus 5% interest is extended by one year to December 31, 2026.

Two new dates were added for those who plan to repay their CEBA loan by refinancing with the original lender.  To qualify for partial loan forgiveness, you must make your refinancing application by January 18, 2024, and by March 28, 2024 you must repay the non-forgivable portion of your loan plus interest starting on January 19, 2024.

A 5% interest rate may sound tempting compared to the refinancing rate offered by your original lender, but this is 5% on the $40,000 or $60,000 that you originally borrowed.  The interest rate on a qualifying refinancing loan will be charged on a $30,000 or $40,000 loan depending on how much you originally borrowed.  Do not choose the 5% rate without comparing the full cost of both options.

We recommend that you contact your financial institution now and make repayment arrangements to ensure that you do not miss the partial loan forgiveness deadline.

The Backgrounder from the Department of Finance is here.

The official Canada Emergency Business Account (CEBA) website is here.

and the CEBA FAQs are here.

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