Press release
The Canada Business Emergency Account (CEBA) program has provided interest-free, partially repayable loans to nearly 900,000 small businesses and nonprofits to help them weather the pandemic and stay resilient.
January 12, 2022 – Ottawa, Ontario – Department of Finance Canada
The Canada Business Emergency Account (CEBA) program has provided interest-free, partially repayable loans to nearly 900,000 small businesses and nonprofits to help them weather the pandemic and stay resilient. However, the Omicron variant has delayed business recovery in many parts of the country.
Today, the Honorable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honorable Mary Ng, Minister of International exchange, Export Promotion, Small business and Economic development, announced that the CEBA loan repayment deadline to qualify for partial loan forgiveness is 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 provide greater repayment flexibility for small businesses and nonprofits, many of which are facing ongoing challenges due to the pandemic. Repayment by the new deadline of December 31, 2023 will result in loan forgiveness of up to one-third of the value of the loans (i.e. up to $20,000).
The outstanding loans would then convert to two-year term loans with interest at 5% per annum beginning January 1, 2024, with the loans being fully due by December 31, 2025.
The government is also announcing that the repayment deadline to qualify for a partial forgiveness of loans equivalent to the CEBA through the Regional Relief and Recovery Fund has been extended until December 31, 2023.
Quote
“As Omicron reminded us, we are still living in a pandemic. Our government understood from the start that we needed to put in place unprecedented measures to meet this unprecedented challenge. By giving small businesses additional time to repay their loans and still have partial loan forgiveness, affected businesses and workers will continue to have the support they need to get through the pandemic.”
– The Honorable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“As we battle the latest wave of the COVID-19 pandemic, we will continue to support small businesses in Canada. Nearly 900,000 small businesses have accessed CEBA loans to help maintain their operations during this difficult time. By extending the repayment period, we are ensuring that these hard-working business owners can focus on their operations and recover from this pandemic stronger than ever.”
– The Honorable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development
Fast facts
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The CEBA program was open for applications from April 9, 2020 to June 30, 2021. It provided over $49 billion in liquidity to more than 898,000 Canadian businesses.
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CEBA offers interest-free loans of up to $60,000 to small businesses to help cover their operating costs during a period when their revenues have been reduced. These loans are partially repayable. With the extension announced today, repayment of the loan balance by December 31, 2023 will result in a loan forgiveness of up to 33% (up to $20,000).
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The $2 billion Regional Relief and Recovery Fund, managed by regional development agencies, has been key support for businesses unable to access other federal pandemic support programs.
Related links
contacts
Media may contact:
Adrienne Vaupshas
Press officer
Office of the Deputy Prime Minister and Minister of Finance
[email protected]
Media Relations
Department of Finance Canada
[email protected]
613-369-4000
Alice Hansen
Press officer
Office of the Minister of International Trade, Export Promotion, Small Business and Economic Development
[email protected]
613-612-0482
General Information
Phone: 1-833-712-2292
TTY: 613-369-3230
Email: [email protected]
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