On September 20, 2023, the CEBA FAQ website was updated to reflect the September 14, 2023 announcement which extended deadlines. Some of the key FAQ’s updated include :
What are the repayment terms for the $40,000 and $60,000 loan and the $20,000 expansion?
Eligible CEBA loan holders in good standing have the following repayment terms:
Interest:
0% per annum interest until January 18, 2024
5% per annum interest starting on January 19, 2024; interest payment frequency may vary by financial institution
Repayments & Maturity:
No principal repayment required before January 18, 2024; if loan remains outstanding on January 19, 2024, it will convert to a non-amortizing term loan with full principal repayment due on December 31, 2026
Debt Forgiveness:
If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by January 18, 2024, the remaining principal amount will be forgiven
If you have submitted a refinancing loan application to the financial institution that provided your CEBA loan by January 18, 2024 but require a grace period in order to finalize the payout of your CEBA loan, you can still qualify for partial loan forgiveness if the outstanding principal of your CEBA loan, other than the amount of potential debt forgiveness, plus any applicable interest is repaid by March 28, 2024
Am I eligible for the January 18, 2024 repayment deadline to qualify for partial loan forgiveness?
Loan holders that met CEBA eligibility criteria and are in good standing are eligible for the January 18, 2024 repayment deadline to qualify for partial loan forgiveness. Loan holders that were contacted by their financial institution in late 2022 informing them that they qualify for a repayment deadline of December 31, 2023 to qualify for partial loan forgiveness will now benefit from an extended repayment deadline of January 18, 2024 to qualify for partial loan forgiveness. Loan holders will be contacted in the coming months by their financial institution to confirm their eligibility for the January 18, 2024 repayment deadline to qualify for partial loan forgiveness.
How do I qualify for loan forgiveness?
Loan holders that met CEBA eligibility criteria and are in good standing are eligible to receive forgiveness if the outstanding balance of the loan (other than the amount available to be forgiven) is repaid on or before January 18, 2024. Loan holders that were contacted by their financial institution in late 2022 informing them that they qualify for a repayment deadline of December 31, 2023 to qualify for partial loan forgiveness will now benefit from an extended repayment deadline of January 18, 2024 to qualify for partial loan forgiveness. Loan holders will be contacted in the coming months by their financial institution to confirm their eligibility for the January 18, 2024 repayment deadline to qualify for partial loan forgiveness.
If you have submitted a refinancing loan application to the financial institution that provided your CEBA loan by January 18, 2024 but require a grace period in order to finalize the payout of your CEBA loan, you can still qualify for partial loan forgiveness if the outstanding principal of your CEBA loan, other than the amount of potential debt forgiveness, plus any applicable interest is repaid by March 28, 2024.
For instructions on how to make a payment towards your CEBA loan, please contact your financial institution.
