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CEBA Loan Repayment Extended

CEBA local business meeting

Over the summer, the Gibsons Chamber held a round table with MP Patrick Weiler and local business leaders to discuss the looming CEBA repayment coming due in December of this year. 

Each business owner was able to tell their story and have their voices heard. Consumer activity has not returned to pre-pandemic levels, and many owners are still feeling the financial pain from lockdowns and regulations. Many businesses across Canada urged the government to act quickly to postpone or extend the CEBA repayment deadline, otherwise a large portion of small businesses would have to consider closing their doors. 

On September 14, 2023, revised terms and deadlines were announced for the Canada Emergency Business Account (CEBA) loan program by the Government of Canada. 

Under these new terms, businesses with federal government loans under the CEBA program must make repayment arrangements with their lending financial institution before January 18, 2024, or the current CEBA loan will be subject to a three-year repayment plan at 5% interest per year, and lose the forgivable portion offered by the government.

The following are the scenarios and terms provided: 

  • CEBA loan holders must have started the refinancing process with the lending financial institution by January 18, 2024, or those businesses are immediately subject to three-year term loans at 5% interest.
  • CEBA loan holders can still achieve the forgivable portion (up to $10,000 for a $40,000 loan and $20,000 for a $60,000 loan.), if the loan refinancing process begins by January 18, 2024, and the loan is paid back in full by March 28, 2024
  • Businesses who refinance but don’t pay back the loan in full by March 28, 2024, will still receive the preferable 5% annual interest rate on the loan, which must be paid back in full by December 31, 2026. This scenario means loan holders who remain in repayment after March 28, 2024, will not be eligible for the forgivable amount.  
  • Loans not fully repaid by March 28, 2024 will incur interest at 5% for a three-year period. Loan holders may have the option of making monthly payments equal to the interest portion during this period with the balance of the principal amount, coming due on December 31, 2026.
  • The above changes to the CEBA program also apply to the CEBA-equivalent lending through the Regional Relief and Recovery Fund (RRRF).

View the full press release here.


BC Chamber of Commerce Statement

“On behalf of the 100 chambers of commerce and boards of trade that we represent, the decision by the Government of Canada to provide additional flexibility for the repayment of CEBA loans is good news. Access to a term loan with a lower interest rate and the ability to repay the loan over three, rather than two, years will be helpful for small businesses that continue to struggle to recover from the devastating effects of the pandemic.

That said, more could have been done to address the needs of businesses that are at risk of losing the forgivable portion of their CEBA loan. Members of the BC Chamber of Commerce passed a policy resolution1 in June seeking a loan forgiveness extension of one year, for those unable to repay the balance due by the December 31, 2023, deadline. While today’s announcement provided a modest extension, we are concerned it will not deliver what many businesses need.

The BC Chamber of Commerce will continue to advocate for its members and champion the needs of business in British Columbia.”