Short CEBA loan extension announced, action required for those not intending to repay by January 18, 2024

FRIDAY, SEPTEMBER 15, 2023

Almost a year ago the government extended the small business pandemic loan program (CEBA), to December 31, 2023 provided debt is repaid by that date a borrower was eligible for up to $20,000 in loan forgiveness.

That deadline has been slightly extended, until January 18, 2024.

A further extension to March 28, 2024 is available to businesses that request financing through their banks and have submitted an application by January 18. If the business is successful in their application for new financing, the CEBA loan (net of the forgivable portion) will be due March 28.

Businesses who apply for new financing before January 18 but are unsuccessful in their application will have the CEBA loan converted a 3-year term loan with interest at 5%, due December 31, 2026. The same applies for businesses who have both not repaid the CEBA loan nor applied for financing by January 18. Under both of these scenarios, the business will not be eligible for the debt forgiveness.

The potential loan forgiveness is substantial, so if you received CEBA and have not yet repaid be sure to meet the new deadline.

If you have any questions please reach out.