As you know, January 18th marks an important milestone regarding your CEBA loan repayment. Despite our best prolonged efforts, I am sorry to report that the Federal Government has given us a hard NO to a CEBA extension.
Due to this decision right now, you should contact your financial institution immediately to discuss repayment and/or refinancing options.
There are three options that you can currently pursue:
Option 1: Repay in full by January 18th, 2024. This will allow you to retain the $10 to $20 thousand in loan forgiveness.
Option 2: If you can’t repay by January 18th, you have the option of seeking refinancing from a financial institution to repay your CEBA loan, which will allow you to retain the $10 to $20 thousand in loan forgiveness. You must contact a financial institution and apply for the refinancing before January 18th, 2024, and successfully be refinanced by March 28, 2024.
Option 3: If you cannot repay by January 18th, 2024 and are not able to refinance because of profitability/creditworthiness of your business, interest will start accruing at 5% annually on the entire loan and you will not be eligible to retain the $10 to $20 thousand in loan forgiveness. The full loan will be due by December 31, 2026.
For further information directly from the Government of Canada: