2023 CEBA Loan Repayment Guide
Last updated October 26, 2023
CEBA is coming due — here’s what you need to know
Did you take advantage of a Canada Emergency Business Account (CEBA) loan? You’re in good company! A total of 898,271 businesses borrowed $49.2 billion in interest-free loans of up to $60,000 to help them survive the economic pressures of the pandemic.[1]
When you repay the remaining balance on your loan by January 18, 2024, you can qualify for loan forgiveness of a portion of the amount you borrowed through the program:
If you borrowed $40,000 or less, 25% will be forgiven
If you borrowed more than $40,000 (by taking advantage of the program expansion to $60,000 in December 2020), 25% of the initial $40,000 plus 50% of any extra amount will be forgiven
The savings are significant — $10,000 forgiven on a $40,000 loan, and $20,000 forgiven on a $60,000 loan — so, if you’re able, plan to repay your balance (less the forgiven amount) by the due date.
What if I can’t pay back the full balance on time?
If you don’t repay your loan balance in full by January 18, 2024, you will miss out on the opportunity for loan forgiveness. In addition:
· Interest of 5% per year will be charged starting on January 19, 2024
· Interest-only repayments are required until payment in full by December 31, 2026
Talk to us and make a repayment plan
Your local Prospera team can help you create a plan to fully repay your CEBA loan by January 18, 2024. Call or email us to work out the best strategy for your business.
Frequently asked questions
What is the remaining balance on my CEBA loan?
If you arranged your CEBA loan through Prospera, all you have to do is ask us. We can let you know how much is still outstanding and help you with strategies to repay it.
What if I almost repay the full balance by January 18, 2024, but not quite?
There’s no wiggle room. If any of your balance remains outstanding after that due date, you won’t get any loan forgiveness.
Can I take out another loan to help me pay the remaining balance by January 18, 2024?
Yes, come and see us. Prospera can work with you to find a financing option so you can take advantage of CEBA loan forgiveness.
Do I need to report the forgiven amount of my CEBA loan when I file my business’s taxes?
Yes, the amount that is forgiven on a CEBA loan is taxable so you must report it on your business’s tax return.
Where can I find more information about the CEBA program?
Learn all the ins and outs of the CEBA program on the official Government of Canada CEBA website.
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