The Canada Emergency Business Account (CEBA) program has provided interest-free, partially forgivable loans to almost 1 million businesses and non-profit organizations to help navigate the ongoing pandemic.
To support short-term economic recovery as the pandemic continues, the Canadian government has announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022 to December 31, 2023 for all eligible borrowers in good standing. Repayment on or before the new deadline will result in loan forgiveness of up to a third of the value of the loans.
Outstanding loans will then convert to two-year term loans with interest of 5% per annum beginning January 1, 2024 with loans fully due by December 31, 2025.
Additionally, the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund is extended to December 31, 2023.
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