Big news for businesses who have received CEBA: the Canadian Government has extended the loan forgiveness repayment deadline. During this global pandemic, CEBA has been used by over 900,000 Canadian businesses, so it is safe to say that this announcement will be good news for many.
According to the news release from CRA:
On January 12, 2022 it was announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.
This extension will support short-term economic recovery and offer greater repayment flexibility to small businesses and not-for-profit organizations, many of which are facing continued challenges due to the pandemic. Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).
This could be of considerable relief for many Canadian businesses, as they still struggle with the outstanding challenges related to the COVID-19 pandemic. Be sure to discuss this with our accountants if you have any questions about how the CEBA loan and its repayment will impact you and your business.
Read more from CRA: News Release January 12, 2022
CEBA: Canada Emergency Business Account