On October 11 2022, new details were released in respect of the extended repayment timeline for CEBA. Eligible borrowers in good standing can receive loan forgiveness if they pay the balance of their loan on or before December 31, 2023. Many of the questions and answers added direct the reader to their financial institution for specific answers. While few details have been provided by the financial institutions thus far, this may indicate that details and communications are soon to be released.
The following questions and answers have been added:
Am I eligible for the December 31, 2023 loan repayment extension?
Borrowers that met CEBA eligibility criteria and are in good standing are eligible for the December 31, 2023 loan repayment extension. If you qualify for the new extended term, your financial institution will contact you and provide details regarding the new repayment date.
CEBA eligibility criteria validations have been completed for all borrowers and the results of these validations are final. These validations were conducted in partnership with the Canada Revenue Agency (CRA) and revalidated periodically since the launch of CEBA in April 2020 to ensure an accurate reflection of the information in CRA records.
Who can I contact if I have questions about my repayment requirements?
For questions about your specific loan details (i.e., the loan balance, outstanding amount that must be repaid, acceptable methods of repayment, and terms of the loan) please contact your financial institution.
For questions regarding eligibility for the CEBA program and the final status of CEBA loan applications (i.e., final loan statuses, reasons for failed applications, and application history) you may call the CEBA Call Centre at 1-888-324-4201. The CEBA Call Centre is available Monday to Friday from 9AM to 6PM Eastern Standard Time, excluding statutory holidays.
How do I qualify for loan forgiveness?
Borrowers that met CEBA eligibility criteria and are in good standing are eligible to receive forgiveness if the outstanding balance of the loan (other than the amount available to be forgiven) is repaid on or before December 31, 2023. Please contact your financial institution for instructions on how to make a payment towards your CEBA loan.
CEBA eligibility criteria validations have been completed for all borrowers and the results of these validations are final. These validations were conducted in partnership with the Canada Revenue Agency (CRA) and revalidated periodically since the launch of CEBA in April 2020 to ensure an accurate reflection of the information in CRA records.
CEBA eligibility was determined based on the criteria established by the Government of Canada. No organization involved in administering the CEBA program has the authority to grant exceptions to these criteria, including your financial institution.
How can I determine the balance of my loan?
Please contact your financial institution for details regarding the balance of your CEBA loan.
How much of my CEBA loan do I have to repay?
Please refer to the repayment terms that you have received from your financial institution for details regarding your CEBA loan and associated forgiveness information. For any additional repayment information, please contact your financial institution.
Please contact your financial institution for instructions on how to make a payment towards your CEBA loan.
If I am about to close my business, do I still have to repay my CEBA loan?
Yes, all applicants that received funding through the CEBA program are required to repay their loan in accordance with the repayment terms of their respective loans. Please refer to the repayment terms provided to you by your financial institution for details regarding your repayment deadline and forgiveness of the loan. For all questions pertaining to the details of your loan (i.e., the loan balance, process for repayment, or other loan account details), please contact your financial institution.
What happens if I cannot repay my loan by the deadline provided in my repayment terms?
Borrowers that are not in good standing are in default of their CEBA loan. If this situation applies to you and you do not repay your loan by the deadline provided in the repayment terms provided by your financial institution, you will be contacted by your financial institution regarding next steps. Additionally, depending on the reason that your loan is not in good standing, you may not be entitled to receive loan forgiveness.
For borrowers that met CEBA eligibility criteria and are in good standing, if you do not repay your loan by December 31, 2023, you will not receive forgiveness. During the period of January 1, 2024 to December 31, 2025, you will be required to pay interest on your CEBA loan. For any additional information regarding interest applicable to your CEBA loan, please contact your financial institution.
What are the repayment terms if my business becomes insolvent or goes bankrupt?
Please contact your financial institution for further details on repayment and other loan terms.
What are the repayment terms if the owner of the business is now deceased?
Please contact your financial institution for further details on repayment and other loan terms.
How do I repay my CEBA loan if the ownership of my business has changed?
The impact of a change in ownership of the borrower on the repayment terms depends on the legal structure of the borrower (i.e., whether the business is a sole proprietor or a corporation). Please contact your financial institution for further details on repayment and other loan terms.
Does CEBA loan forgiveness need to be reported in my income tax filing? If so, when?
The forgiveness portion of your CEBA loan is taxable. For any other taxation questions relating to your CEBA loan, please contact the Canada Revenue Agency (CRA) or your accountant for further information.
Can I raise a dispute to change my repayment terms?
No. The CEBA Program is no longer providing a review, assessment or re-determination of a CEBA borrower’s eligibility status, final outcome or repayment term. As the application and funding periods for the CEBA Program have now closed, the opportunity for further resolution has now passed and applications will not be reconsidered by the CEBA Program.