CEBA Loan Repayment Deadline Approaches: Small Businesses Urged to Act
THUNDER BAY – BUSINESS – Canada Emergency Business Account (CEBA) Repayment Deadline is January 18
Business Owners Advised to Repay on Time
With just one week left until the January 18 deadline for Canada Emergency Business Account (CEBA) loan repayments, small businesses are facing a critical decision. The Canadian Federation of Independent Business (CFIB) warns that it’s highly unlikely the federal government will provide an extension, urging business owners to act promptly to keep the forgivable portion.
Time Running Out for CEBA Loan Repayments
Dan Kelly, CFIB president, stated, “There won’t be any last-minute extension to the current January 18 deadline.” Over 900,000 small businesses hold CEBA loans, and 22% are unable to repay at this time, raising concerns for Canada’s economy.
Important Information for CEBA Loan Holders
- Refinancing Option: To keep the forgivable portion, apply for a refinancing loan with the original CEBA loan-issuing bank by January 18, 2024, to qualify for a special extension until March 28, 2024. Document any refinancing requests.
- Rejection Consideration: If rejected for refinancing, you can still qualify for the extension until March 28, 2024, as long as your account is in good standing, providing additional time to seek alternative financing.
- Loan Repayment: Ineligible businesses that cannot repay or borrow to repay the loan will lose the forgivable portion. They will have three years until the end of 2026 to repay the balance at 5% interest.
- Ineligible Businesses: Around 50,000 ineligible businesses have already missed the December 31, 2023 deadline and lost access to the forgivable portion. The government announced flexibility for these cases, offering up to a two-year repayment period with no penalties and 5% interest starting in the spring of 2024.
CFIB advocates for fairness in the CEBA program’s winding down, calling for a three-year repayment plan for those initially deemed ineligible and a review process for minor errors. The organization also urges the government to ensure eligible businesses don’t lose access to the forgivable portion due to eligibility issues.