CEBA Loans Update

At the close of the Liberal Caucus retreat the Federal Government announced changes to the Canada Emergency Business Account (CEBA) loan repayment regulations. The changes will provide a small amount of relief to small businesses facing the potential loss of the forgivable portion of the loan.

Repayment deadline moved to January 18, 2024 from December 31, 2023 - in order to qualify for the partial loan forgiveness of up to 33%, businesses now have until January 18, 2024 to repay the loan. The government says this is in recognition that the end of December is a busy time for small businesses, not that it will make it easier to repay.

Refinancing deadline extended to March 28, 2024 - for businesses who make a refinancing application with their financial institution by the January 18, 2024 deadline, they now have until March 28, 2024 to conclude the refinancing and still be eligible for the loan forgiveness.

Loan repayment extended to December 31, 2026 - as of January 19, 2024, outstanding loans, including those that are captured by the refinancing extension, will convert to three-year term loans, with the repayment date extended by a year to December 31, 2026.

Term loans to receive 5% interest rate - businesses applying for the refinancing above will receive a rate of 5% per annum.

For more information and to find some real business examples visit government announcement.

BIABC, the coalition of all BIAs within British Columbiam had joined with many business associations seeking relief for small businesses in repaying the CEBA loans. In a survey conducted over the summer of the respondents reporting they had not repaid their loans, over 55% said it would be impossible or very difficult to repay under the rules existing at that time. A further 25 % said it would be difficult.