There’s good news concerning repayment schedules for CEBA loans from the Federal Government.
The repayment deadline to qualify for partial CEBA loan forgiveness is being extended to December 31st of next year for all eligible borrowers in good standing.
If you borrowed $40,000 or less, repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31st of 2023 will result in loan forgiveness of 25 percent (up to $10,000).
However, if you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed.
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2023 will result in a single stream of loan forgiveness up to $20,000 which is calculated on a blended rate of 25 percent on the first $40,000; plus 50 percent on amounts over $40,000 and up to $60,000.
(For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single stream of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2023. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid).
Please speak to a representative of the financial institution where you borrowed the money if you have more questions about the terms of repayment.
