On September 14th, the Prime Minister announced changes to the CEBA program. The deadline for the loan forgiveness was extended three weeks from December 31, 2023, to January 18, 2024. CEBA holders who make a refinancing application with the financial institution that provided their CEBA loan by January 18, 2024, will qualify for loan forgiveness until March 28, 2024.
As of January 19, 2024, outstanding loans, including those captured by the refinancing extension, will convert to three-year term loans, subject to interest of five percent per annum. For loans that do not refinance, the term loan repayment date has been extended by an additional year from December 31, 2025, to December 31, 2026.
CCUA communicated with the government before and after the announcement. We were pleased to see the short extension to allow businesses and credit unions to work around the holiday season and no further delay on the forgiveness portion, given the immense work credit unions have already done ahead of the deadline.
If you have any questions on CEBA, please contact Rachel Barry.