It’s time to talk CEBA, folks.
The Canada Emergency Business Account (CEBA) loans that so many of us qualified for back in the heart of the pandemic are all about to come due. They must be paid back, in full, by January 18th, 2024.
The benefits for repaying your CEBA loan by January 18th are immense. You really don’t want to miss it.
- CEBA loans repaid by the due date are eligible for loan forgiveness of up to $20,000
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- For those who borrowed in the first wave, loan forgiveness is 25% of the principal borrowed. For example, if you borrowed the maximum of $40,000, you would only have to repay $30,000.
- For those that borrowed in the second wave, loan forgiveness of 50% was available. For example, if you borrowed the maximum of $20,000, you would only have to repay $10,000.
- If you borrowed the maximum in both waves ($60,000 total), you would only have to repay $40,000.
- CEBA loans not paid off by January 18th convert into regular debt at their full principal amount without any forgiveness (so, up to $60,000). Starting on January 19th, 2024, interest charges will begin at a rate of 5% annually.
There isn’t much more to say about CEBA loans. It was a great subsidy IF repaid by the deadline.
If you have an unpaid CEBA loan, please make sure you have it paid off, in full, before January 18th, 2024. Even better, we recommend trying to pay it off a few days early, just to avoid a worst-case-scenario bank hiccup.
