Is there a deadline to apply for the CEBA loan?
Yes, you have until March 31, 2021, to apply for the $40,000 CEBA loan or the $20,000 expansion loan.
Do I need to apply separately for the $20,000 CEBA expansion?
Yes, if you’ve already received the original $40,000 loan, you must apply separately for the $20,000 expansion.
What are the repayment terms for the CEBA loan?
The following terms apply to all CEBA loans (original loan and expansion loan):
Interest:
- 0% per annum interest until December 31, 2022
- 5% per annum interest starting on January 1, 2023
Repayments & Maturity:
- No principal repayment required before December 31, 2022
- If loan remains outstanding after December 31, 2022, only interest payments required until full principal is due on December 31, 2025
Debt Forgiveness:
- If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by December 31, 2022, the remaining principal amount will be forgiven, provided that no default under the Loan has occurred
What are the terms of the debt forgiveness?
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 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Example:
- Maximum amount borrowed: $40,000
- Amount repaid by December 31, 2022: $30,000
- Available Forgiveness: $10,000
Example:
- Maximum amount borrowed: $20,000
- Amount repaid by December 31, 2022: $15,000
- Available Forgiveness: $5,000
Example:
- Maximum amount borrowed: $40,000
- Amount repaid by December 31, 2022: $25,000
- Available Forgiveness: $0
If you borrowed more than $40,000 and up to $60,000:
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, 2022 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
- 25 percent on the first $40,000; plus
- 50 percent on amounts above $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 tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022.
For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid.
Example:
- Maximum amount borrowed: $60,000
- Amount repaid by December 31, 2022: $40,000
- Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)
Example:
- Maximum amount borrowed: $50,000
- Amount repaid by December 31, 2022: $35,000
- Available Forgiveness: $15,000 ($40,000 x 25% + $10,000 x 50%)
Example:
- Maximum amount borrowed: $60,000
- Amount repaid by December 31, 2022: $35,000
- Available Forgiveness: $0
If you fully repaid your original $40,000 loan, claimed forgiveness, and thereafter received the $20,000 expansion:
Repaying the outstanding balance of the $20,000 expansion (other than the amount available to be forgiven) on or before December 31, 2022 will result in loan forgiveness of 50 percent (up to $10,000).
Example:
- Maximum amount borrowed: $20,000
- Amount repaid by December 31, 2022: $10,000
- Available Forgiveness: $10,000
Example:
- Maximum amount borrowed: $20,000
- Amount repaid by December 31, 2022: $8,000
- Available Forgiveness: $0
how long will it take to receive my loan?
After applying, your application will need to be assessed for eligibility. If you meet the requirements, it will be submitted to the Federal Government for processing. Once approved, the money will be deposited into your account within approximately 10-15 business days.
Where can I find out the status of my CEBA loan application?
You can check your application status on the Government of Canada CEBA website.
For a more detailed CEBA FAQ, visit the Government of Canada’s website.