The Canada Emergency Business Account (CEBA) program provided $49.17 billion in interest-free, partially repayable loans to 898,254 small businesses and nonprofits. The $60,000 loans helped them weather the pandemic and stay resilient. However, the Omicron variant has delayed business recovery in many parts of the country.
On Wednesday, January 12, 2022, the government announced that the deadline for repayment of CEBA loans to benefit from a partial loan forgiveness is extended by one year, from December 31, 2022 to December 31, 2023, for all eligible borrowers in good quality.
The extension supports short-term economic recovery and provides greater repayment flexibility for small businesses and nonprofits, many of which are facing ongoing challenges due to the pandemic.
Repayment by the new deadline of December 31, 2023 will result in loan forgiveness of up to one-third of the value of the loans (i.e. up to $20,000).
Outstanding loans would then convert to two-year term loans with 5% annual interest beginning January 1, 2024, with the loans due in full by December 31, 2025.
The government also announced that the repayment deadline to qualify for a partial forgiveness of loans equivalent to the CEBA through the Regional Relief and Recovery Fund is extended until December 31, 2023.