The Canada Emergency Business Account (CEBA) has been a lifeline for countless Canadian small business owners during these challenging times. As part of our commitment to keeping you informed, J.M.J. Accounting & Tax Services Inc. is here to provide you with the latest updates regarding the CEBA deadlines. The government has extended key dates, affecting loan repayment, interest rates, and loan forgiveness, and we want to ensure that you are well-informed about these changes.

CEBA Loan Repayment Date Extended

As of September 14th, Prime Minister Trudeau announced a vital extension to the CEBA Deadline. The previous deadline for interest-free repayment and partial loan forgiveness was set for December 31, 2023. However, this date has now been pushed forward by 18 days to January 18, 2024. Although it's a small extension, this change is significant for businesses that want to pay off their loans without incurring any interest.

This extension into January can be seen as a positive move, as late December tends to be a busy time for both Canadians and Canadian businesses. Additionally, if you have applied for CEBA loan refinancing with your financial institution, there's an extended deadline until March 28, 2024. To ensure you receive the refinancing, it's essential to apply before January 18, 2024.

CEBA Loan Repayment Deadline

Originally, the term loan was set for a two-year period, with a due date of December 31, 2025. This term has now been extended to a three-year period, with the due date set for December 31, 2026. To summarize these changes:

• Continue to work on receiving partial loan forgiveness by repaying your CEBA Loan by January 18, 2024.
• Request loan refinancing before January 18, 2024, and ensure that the refinancing process is completed by March 28, 2024.
• Meeting the January 18, 2024, three-payment deadline is crucial to be eligible for applicable loan forgiveness.

CEBA Loan Interest Rates

January 18, 2024, also marks the end of the interest-free loan period. After this date, businesses with outstanding loan balances will begin paying interest at a rate of 5%. The loan will be due in full on December 31, 2026. Over the course of the CEBA program, we've seen several changes to repayment terms to support Canadian businesses.

Will CEBA Be Extended Again?

Borrowers who initially met the CEBA criteria and are eligible for this extension should have already been contacted by their financial institutions with details regarding the new repayment date. If you're unsure about your specific repayment schedule, please review correspondence from your financial institution or contact them directly.

Loan Forgiveness Details

The CEBA program initially offered loans of $40,000 and $60,000 to Canadian businesses. The most common loan repayment scenarios involve businesses borrowing $40,000 and repaying $30,000, receiving $10,000 in forgiveness, and businesses borrowing $60,000 and repaying $40,000, receiving $20,000 in forgiveness. However, it's important to note that there are conditions to be met to secure loan forgiveness.

If the outstanding balance, aside from the forgivable amount, isn't repaid in full, the loan forgiveness no longer applies. This means you'll need to repay the entire loan amount, including the portion that could have been forgiven. It's crucial to understand these terms to make informed decisions about your CEBA loan.

These changes to the CEBA deadlines are designed to provide continued support for Canadian businesses facing economic challenges. We at J.M.J. Accounting & Tax Services Inc. are committed to helping you navigate these updates and ensure you make informed decisions regarding your CEBA loan. Share this information with your friends and family to keep them informed as well. If you have any questions or need assistance, please do not hesitate to reach out to us. We are here to support you every step of the way.

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