Business debt can be a source of anxiety, especially in a turbulent economy, but the CEBA loan gives you some breathing room. Before you rush into paying back your loan, review the repayment terms:
- If your business isn’t eligible for debt forgiveness, your loan balance must be paid in full by December 31, 2023.
- If your business is eligible for partial loan forgiveness, your loan is interest free until January 18, 2024, and principal payments are not required.
- If you submit your final payment by January 18, 2024, you’ll receive partial loan forgiveness even though the payment may be processed after January 18, 2024.
- If you have an outstanding balance on your CEBA loan as of January 19, 2024 and are not awaiting the processing of your final payment, you’ll no longer qualify for partial loan forgiveness unless you’ve applied for refinancing through CIBC on or before January 18, 2024. If you’ve applied by this date, you can still qualify for partial loan forgiveness if the outstanding principal of your CEBA loan — other than the amount available to be forgiven — is repaid on or before March 28, 2024.
- If you don’t repay your CEBA loan in time to receive partial loan forgiveness as described above, the deadline for repayment of the principal amount outstanding under your CEBA loan — together with any accrued and unpaid interest, — is December 31, 2026.
Depending on the amount of your CEBA loan, the amount that is eligible for forgiveness will vary. The forgiveness benefit allows a portion of your loan to not require repayment:
- If you received a $40,000 CEBA loan, you can repay 75 percent of the total amount ($30,000) by January 18, 2024 and the remaining 25 percent ($10,000) is eligible for a loan forgiveness benefit.
- If you received a $60,000 CEBA loan, you can repay 66 percent of the total amount ($40,000) by January 18, 2024 and the remaining 34 percent ($20,000) is eligible for a loan forgiveness benefit.
The forgivable portion of the CEBA loan, $10,000 or $20,000, is taxable in the year in which the loan is received. It may be a good idea to create a repayment plan, one that helps you stay on track to pay back the repayable portion of your loan in time, so you can take advantage of the forgiveness benefit.
To make CEBA loan payments, sign on to CIBC Online Banking for Business, using your Business Banking Convenience Card number and password. Then follow these steps:
- Select the Customer Services tab.
- Under Account Services, select CEBA Loan Repayment.
- Under To Account, select the CEBA loan you want to repay.
- Choose the From Account.
- Enter the repayment amount.
- Select Submit.
- Review payment details. If satisfied, select Yes. CEBA loan payments can take up to 7 business days to process. Make sure there are enough funds in the account until your payment has gone through.
- Print the confirmation page for your records.
Note: The CEBA loan balance on Online Banking can take up to 6 weeks to update.
You can also make payments by speaking with an advisor at any CIBC Banking CentreOpens in a new window.