Canada Emergency Business Account (CEBA) – Updated October 2, 2023

02.10.23

Canada Emergency Business Account (CEBA)

Canada Emergency Business Account (CEBA)
As part of COVID-19 relief measures, the Government of Canada announced a new program to support Canadian business called the Canada Emergency Benefit Account (CEBA) in cooperation with Export Development Canada (EDC).

The CEBA program was available from April 9, 2020, to June 30, 2021, and provided interest-free, partially forgivable loans of up to $60,000 to small businesses and not-for-profit organizations to help cover their operating costs during the pandemic.

NOTICE
Government extends repayment and partial loan forgiveness deadlines.

On September 14, 2023, the Prime Minister announced extended deadlines for Canada Emergency Business Account (CEBA) loan repayments, providing an additional year for term loan repayment, and additional flexibilities for loan holders looking to benefit from partial loan forgiveness of up to 33 per cent.

The repayment deadline for CEBA loans to qualify for partial loan forgiveness of up to 33 per cent is being extended from December 31, 2023, to January 18, 2024.

For CEBA loan holders who make a refinancing application with the financial institution that provided their CEBA loan by January 18, 2024, the repayment deadline to qualify for partial loan forgiveness now includes a refinancing extension until March 28, 2024.  Interest will start accruing on January 19, 2024 on all outstanding loans regardless of the status of their refinancing applications.

As of January 19, 2024, outstanding loans, including those that are captured by the refinancing extension, will convert to three-year term loans, subject to interest of five per cent per annum, with the term loan repayment date extended by an additional year from December 31, 2025, to December 31, 2026. Put simply, small businesses and not-for-profits will automatically have access to a three-year, low-interest loan of up to $60,000 if they have not repaid or refinanced their loan through their financial institution. This will provide those who are unable to secure refinancing or generate enough cashflow to repay their loans by the forgiveness deadline an additional year to continue repayment at a low borrowing cost.

Repayment on or before the new deadline of January 18, 2024 (or March 28, 2024 if a refinancing application is submitted prior to January 18, 2024 through their financial institution that provided their CEBA loan), will result in loan forgiveness of $10,000 for a $40,000 loan and $20,000 for a $60,000 loan.

BCU Financial helped over 200 small businesses and non-profits access CEBA funding and processed over 300 loans.  We will be working with our small business members to repay their loan(s) or to refinance their loan(s) with a customized plan for each small business.

For more detailed information, please contact your local BCU Financial Branch.

For more information or access to FAQs related to the Canada Emergency Benefit Account (CEBA), please click here https://ceba-cuec.ca/