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Repayment Tips for Canada Emergency Business Account - CEBA?

Updated: Feb 7, 2022

If your business received a business loan under the CEBA government initiative you'll be relieved to hear that the deadline for CEBA repayment, which was Dec. 31 of this year, is now pushed to the same date in 2023, said Mary Ng, minister of international trade.

Note that outstanding loans after the new deadline will be converted to two-year term loans with a five percent interest rate, starting on Jan. 1, 2024, with the loans due in full by Dec. 31, 2025

Do not lose sight of this new deadline. Organize your budget (now over a longer span of time) to pay this loan back on time and SAVE YOUR BUSINESS money.

If your business borrowed $40,000 you’ll only have to pay back $30,000. This will be done by transferring the said amount from the business chequing/savings account into the CEBA credit card or CEBA LOC account. If your business borrowed a total amount of $60,000, only $40,000 is expected back as long as you repay by said date. The remainder of the loan will be forgiven for as long as you pay on time.

Your business may have used up the CEBA funds and as part of your upcoming projections you should figure out how much you will set aside on a regular basis so the amount due is paid on time. We recommend that you assign a separate bank account where you collect the CEBA amount to be repaid- Whenever possible start building the balance to be repaid progressively depending on your projections so it does not feel like an insurmountable task.

What happens if I do not pay the expected repayment amount? The loan will be converted into a 3 year-term at a 5% interest rate for the full amount of the loan or the amount that was unpaid by December 31, 2022. This means that if you took out only 25,000 from the CEBA account and you do not pay anything by December 31, 2022, you will be owing the full $25,000 at a 5% rate for a 3 year period. Similarly, if you took out the full $60,000 and you repay only $20,000 by December 31, 2022, you will be expected to repay the remaining $40,000 at a 5% interest rate over a three-year period.

If you need help getting your business finances organized to meet this deadline let us know.

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