The Canada Emergency Business Account (CEBA) program provided $49.17 billion in interest-free, partially forgivable loans to 898,254 small businesses and not-for-profits. The $60,000 loans helped them navigate the pandemic and remain resilient. However, the Omicron variant has delayed the recovery for businesses in many parts of the country.
On Wednesday, Jan. 12, 2022, the government announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended for one year from Dec.31, 2022, to Dec. 31, 2023, for all eligible borrowers in good standing.
The extension supports short-term economic recovery and offers greater repayment flexibility to small businesses and not-for-profits, many of which are facing continued challenges due to the pandemic.
Repayment on or before the new deadline of Dec. 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 would subsequently convert to two-year term loans with annual interest of 5 per cent per starting on Jan. 1, 2024, with the loans fully due by Dec. 31, 2025.
The government also announced that the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund is extended to Dec. 31, 2023.