The Government of Canada has announced a new CEBA loan repayment deadline of January 18, 2024 for those clients that qualify for partial loan forgiveness and are in good standing. The final maturity date for unpaid CEBA loans is now December 31, 2026.
Note: If the Government of Canada has deemed you ineligible for partial loan forgiveness, the CEBA loan repayment date will remain as December 31, 2023. If you have questions about why your business didn’t meet the eligibility criteria for the CEBA loan, please contact the CEBA Call Centre at1-888-324-4201 Opens your phone app..
The content below only applies to businesses that are eligible for partial loan forgiveness.
What’s next for your CEBA government loan?
Understanding the loan grace period
Until January 18, 2024, the interest rate is 0% and principal repayment is not required.
Taking advantage of partial loan forgiveness1
$20,000 of a $60,000 loan or $10,000 of a $40,000 loan.
The next few years of your CEBA loan
By January 18, 2024
Grace period where the interest rate is 0%, no principal repayment is required and you can take advantage of the partial loan forgiveness feature. If you require financing, apply by this date to be eligible for partial loan forgiveness if repaid on or before March 28, 2024.
January 19, 2024
Your CEBA loan will be converted to a 3-year 5% term loan if you didn’t apply for financing or your loan wasn’t fully repaid by January 18, 2024.
March 28, 2024
Deadline to repay if you applied for financing by Jan 18, 2024, in order to receive partial loan forgiveness
December 31, 2026
Deadline to fully repay your CEBA loan if it was converted to a 3-year 5% term loan.
CEBA loan at a glance
Loan amount
$40,000 or $60,000
Loan terms prior to January 18, 2024
Interest rate
0%
Principal payments
Not required
Forgiveness1
For $40,000 loans: $10,000 could be forgiven if $30,000 is fully repaid by January 18, 2024 (or March 28, 2024 if you applied for financing by January 18, 2024).
For $60,000 loans: $20,000 could be forgiven if $40,000 is fully repaid by January 18, 2024 (or March 28, 2024 if you applied for financing by January 18, 2024).
Loan terms after January 19, 2024
Term
Converted into a 3-year term loan if not fully repaid
Interest rate
5% fixed per year
If you applied for refinancing by January 18, 2024, your loan will have the above terms until it is paid in full on or before March 28, 2024.
Repayments
Repayments by January 18, 2024 or by March 28, 2024 for those that applied for financing
If you wish to fully repay your loan and do not want to take advantage of the partial loan forgiveness benefit, please indicate this to your advisor or in your repayment form.
Repayments after January 19, 2024
The outstanding balance and interest due must be repaid in full by December 31, 2026.
CEBA FAQ
Loan details
If you’re a CEBA loan holder eligible for forgiveness, your loan was due on January 18, 2024 to repay without interest charges. If you applied for refinancing by January 18, 2024, you may have until March 28, 2024 to repay the loan and still be eligible for forgiveness. Please note you will be charged 5% per annum from January 19 to the date you repay your loan (no later than March 28, 2024).
If you didn’t apply for refinancing by January 18 or are unable to repay your loan by March 28, any outstanding principal is automatically converted into a 3-year term loan at 5% per annum, due by December 31, 2026.
You may repay the term loan in part or in full at any time before December 31, 2026 without any early repayment penalty.
You can make a payment using CIBC Online Banking for Business — review the next question for steps — or contact your advisor.
If you’re a CEBA loan holder not eligible for forgiveness, your loan was due on December 31, 2023. We recommend that you repay your loan at your earliest convenience. If full repayment of your CEBA Loan isn’t received, your loan will likely be assigned to the government’s CEBA Program Opens in a new window.. In that case, the following will occur:
You’ll no longer be able to access your CEBA Loan details through CIBC.
You’ll receive a notice from the CEBA Program containing a new unique CEBA Identification Number to identify your loan, instructions on how to access your CEBA Loan online and updated payment methods for how to make payments directly to the CEBA Program.
All right, title and interest of CIBC, as lender, in your CEBA Loan, including all applicable documentation and CEBA account information pertaining to your CEBA Loan, will be assigned to the CEBA Program. All related personal information will be transferred to the CEBA Program and will be subject to the Privacy Act (R.S., 1985,c. P-21) and the CEBA Program’s applicable privacy policy available at Export Development Canada (EDC) Opens in a new window.. As such, CIBC will disclose all such applicable documentation and information to the CEBA Program.
Any CEBA Loan payments accepted by CIBC may be subsequently remitted to the CEBA Program, in which case interest will accrue on such payments until they are received and processed by the CEBA Program.
You may be contacted by the Canada Revenue Agency (CRA) regarding repayment of your CEBA Loan. CRA and the CEBA Program will take such steps that they deem necessary and appropriate to collect the CEBA Loan, which may include the commencement of proceedings and a claim for costs in connection with same.
You can make payments on your CEBA loan through CIBC Online Banking. To do so, follow the steps outlined below.
Sign on to CIBC Online Banking for Business, using your Business Banking Convenience Card number and password.
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.
Upon repayment of your principal balance in full, the applicable outstanding interest will be automatically debited from your account. Interest is being calculated at a rate of 5% per annum starting January 19, 2024, to the date the principal payment is made in full.
If your loan was eligible for forgiveness but wasn’t repaid by January 18, 2024, it was converted to a 3- year term loan at 5% per annum due by December 31, 2026. You’re not required to make monthly payments. Your full principal and accrued interest are due by December 31, 2026.
While no principal repayments are required until December 31, 2026, you can make regular payments on your CEBA loan through CIBC Online Banking — see previous question for steps. You can also make payments by contacting a CIBC representative at any CIBC Banking Centre.
If your loan was eligible for forgiveness and you applied for refinancing by January 18, 2024, the 5% per annum would only apply until your loan was repaid (no later than March 28, 2024).
If you’re eligible for forgiveness, your loan forgiveness amount is based on the loan amount you borrowed.
If you borrowed $40,000 and you repaid $30,000 on or before January 18, 2024, your loan forgiveness was $10,000. If you applied for refinancing by January 18, 2024, you have until March 28, 2024 to repay to be eligible for partial loan forgiveness.
If you borrowed $60,000 and you repaid $40,000 on or before January 18, 2024, your loan forgiveness was $20,000. If you applied for refinancing by January 18, 2024, you have until March 28, 2024 to repay to be eligible for partial loan forgiveness.
If you repaid $30,000 out of your $40,000 loan, claimed the forgiveness amount, and thereafter received the $20,000 expansion and repaid $10,000 on or before January 18, 2024, your loan forgiveness was $10,000. If you applied for refinancing by January 18, 2024, you have until March 28, 2024 to repay to be eligible for partial loan forgiveness.
If, on or before January 18, 2024, you repaid less than $30,000 out of your $40,000 loan, or less than $40,000 out of your $60,000 loan, or less than $10,000 out of your $20,000 loan expansion, you will not be eligible to receive a partial loan forgiveness amount.
Note:The forgiveness amount cannot be included as your repayment amount.
Refer to a few examples:
If you borrowed
And you repaid by January 18, 2024
Your forgiveness amount
Example 1
$40,000
$30,000
$10,000
Example 2
$60,000.
$40,000
$20,000
Example 3
$20,000
$10,000
$10,000
Example 4
$40,000
$25,000
$0
Any outstanding amount beyond January 18, 2024 was converted to a 5% interest 3-year term loan due by December 31, 2026. If you applied for refinancing by January 18, 2024, your loan will have the above terms until it’s paid off (no later than March 28, 2024).
Only the forgivable portion of the CEBA loan is taxable ($10,000 or $20,000 depending on loan type), while the remaining amount ($30,000 or $40,000) is considered a repayable loan and doesn’t need to be declared. The forgivable portion of the CEBA loan ($10,000 or $20,000) is taxable in the year in which the loan is received. You can declare the forgivable loan portion to the CRA for the year in which the loan is received either by including it in your business reported income or reducing the deduction for business expenses by the amount of the forgivable portion. If you need more information on how to do this or have other questions about how to prepare your future tax returns, speak to the CRA or your accountant.
You can check the outstanding balance of your loan online if you register for CIBC Online Banking for Business Opens in a new window.. Please note, interest owed will not be reflected. To determine how much interest is owed, visit your local banking centre or contact your advisor.