The latest extension to the Canada Emergency Business Account (CEBA) could provide relief for Canadian charities. By extending the repayment deadline and offering a refinancing option, the government has provided these eligible organizations with valuable extra time to recover from the financial straits brought about by the pandemic.
First introduced in 2020, the CEBA program provided eligible small businesses and not-for-profits interest-free loans to help cover their operating costs during a period where their revenues had been temporarily reduced, due to the economic impacts of COVID-19.
The repayment deadline to qualify for partial loan forgiveness of up to 33 per cent had previously been extended from December 31, 2022, to December 31, 20231. The government is now extending it further to January 18, 2024. The Department of Finance has announced, “For CEBA loan holders who make a refinancing application with the financial institution that provided their CEBA loan by January 18, 2024, the repayment deadline…now includes a refinancing extension until March 28, 2024.”2
For more details on this change including the interest rate and repayment terms for those granted a refinancing extension, see the announcement from the Department of Finance here.
1 Department of Finance Canada: Government extends loan forgiveness repayment deadline for the Canada Emergency Business Account
2 Department of Finance Canada: Canada Emergency Business Account: Government extends repayment and partial loan forgiveness deadlines