What is a Canada Emergency Business Account (CEBA)?
The CEBA loan program was launched on April 9, 2020, as a Government of Canada financial relief measure to help grant financial support to Canadian businesses adversely affected by COVID-19. The deadline to apply for the CEBA loan program was June 30, 2021.
NOTE: the CEBA application and forgiveness deadlines have passed.
Latest update.
CEBA interest-free loan repayment deadline extended to January 18, 2024.
- The Government of Canada has announced that the interest-free period for the CEBA loan program has been extended to January 18, 2024
- Pay back your minimum required portion by January 18, 2024, to qualify for partial loan forgiveness. ‡ Further details can be found below
- No interest still applies until January 18, 2024
- CEBA loan holders can repay their loan in part or in full at any time
- If CEBA loans are not refinanced:
- Monthly payments to cover the interest of CEBA loans will be taken
- CEBA loans are due and payable in full on December 31, 2026
About your CEBA loan.
- What is the Canada Emergency Business Account (CEBA)\
- Government of Canada’s financial relief measures to support Canadian businesses adversely affected by the COVID-19 pandemic.
- The CEBA loan was funded as a term loan with no interest and no payments
- CEBA loans grace period
- CEBA non-revolving loans are interest free until January 18, 2024, with no minimum repayment required
- No principal repayment required before January 18, 2024
- If loan remains outstanding after January 18, 2024, only interest payments required until full principal is due on December 31, 2026
- CEBA partial forgiveness benefit
- CEBA loans paid out (minus the forgivable portion) by January 18, 2024, and are in good standing, where no default under the Loan has occurred may be eligible for a partial repayment forgiveness benefit
- $10,000 of a $40,000 loan
- $20,000 of a $60,000 loan
- CEBA loans paid out (minus the forgivable portion) by January 18, 2024, and are in good standing, where no default under the Loan has occurred may be eligible for a partial repayment forgiveness benefit
- CEBA loans not fully paid by January 18, 2024
- Beginning January 19, 2024, for those eligible for the CEBA loan repayment extension, interest will begin to accrue on the balance of the term loan at a rate of 5% per annum, paid monthly on the last day of the month.
- All CEBA loans must be paid in full by December 31, 2026
- Borrowers who are not eligible for the CEBA loan repayment extension must pay back their loan in full by December 31, 2023
- Expansion loans
- If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness would have changed to:
- Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before January 18, 2024, will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
- 25 percent on the first $40,000; plus
- 50 percent on amounts above $40,000 and up to $60,000
- If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness would have changed to:
Contact us
We always recommend speaking to an advisor to discuss your options regarding your CEBA loan. The best option for your business depends on your unique circumstances. If you have questions or would like to speak to an advisor about your options for refinancing, please contact us at:
- [email protected]
- Conexus Member Contact Centre 1-800-667-7477, select option 2: Business Support
- Or visit the Government of Canada website
Government of Canada CEBA Call Centre
If you have general questions about the CEBA program, timelines, or your eligibility determination, you may call the Government CEBA Call Centre at 1-888-324-4201.
- The CEBA Call Centre is available Monday to Friday from 9AM to 6PM Eastern Standard Time, excluding statutory holidays.
- Before speaking to a Call Centre agent, make sure you have your 9-digit CRA business number and the tax form you used in your application (T1, T2 or T4SUM) ready. If you do not have the tax form you used in your application and you applied through the Non-Deferrable Expense stream, please have the documents you uploaded readily available.