Nearly 900,000 small businesses and not-for-profit organizations have benefited from the Canada Emergency Business Account (CEBA) program, which has provided interest-free, partially forgivable loans to assist them to navigate the pandemic and remain resilient. The Omicron variety, on the other hand, has slowed business recovery in several sections of the country.
It was been announced that the CEBA loan repayment deadline for eligible borrowers in good standing will be extended from December 31, 2022, to December 31, 2023.
This extension will aid short-term economic recovery and provide small businesses and non-profit organizations with greater repayment flexibility, as many of them continue to face hardships as a result of the pandemic. Loan forgiveness of up to a third of the loan value (up to $20,000) will be granted if payments are made on or before the revised deadline of December 31, 2023.
That being said the $40,000 must now be repaid by December 31, 2023.
On January 1, 2024, outstanding loans would be converted to two-year term loans with a 5% annual interest rate, with the loans entirely due by December 31, 2025.
The repayment date to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund has been extended to December 31, 2023, according to the government.