The federal government is extending the deadline for small businesses to pay back their Canada Emergency Business Account (CEBA) loans to the end of 2023.
The government introduced CEBA in April 2020 as an interest-free loan program, offering initially up to $40,000 to small businesses and non-profits who have experienced a loss of revenue due to COVID-19. An expansion was then offered, seeing businesses able to apply to receive up to $60,000 loans.
Prior to Wednesday’s update, if claimants repaid the balance of their loan on or before the end of 2022, the government planned to forgive up to one-third of their loan. Now, eligible businesses “in good standing,” will have until Dec. 31, 2023 to repay and be eligible for up to $20,000 of debt forgiveness.