CRA Announces Extension to CEBA Loan Repayment
Businesses that received interest-free loans under the Canada Emergency Business Account (CEBA) program now have until January 18, 2024 (previously December 31, 2023) to repay these loans to qualify for partial loan forgiveness.
Borrowers who file a refinancing application with their financial institution by January 18, 2024 will have until March 28, 2024 to qualify for partial loan forgiveness. According to Finance, businesses that repay the balance of these loans on or before the new deadlines will receive loan forgiveness of up to a third of the value of the loans (i.e., up to $20,000).
Businesses should contact the financial institution that provided their CEBA loan for instructions on how to make a payment towards their CEBA loan.
Finance also states that where businesses have outstanding loans on January 19, 2024, these loans would subsequently convert to three-year term loans, with interest of 5% per annum, and these loans will be due in full by December 31, 2026 (previously December 31, 2025).
If you any further questions about CEBA and strategies to help manage your repayment, reach out to us: https://noseworthychapman.ca/contacts
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