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OBIAA, TABIA and OCOBIA have been surveying members of Your BIAs, thanks to your support. We will be combining the two key questions asked and will present the full picture to our members and MPs. OBIAA, with your support, received 868 responses.

Here are some preliminary results: 
Will CEBA repay affect

how Will CEBA repay affect

Repaying your CEBA loan

Business debt can be a source of anxiety, especially in a turbulent economy, but the CEBA loan gives you some breathing room. Before you rush into paying back your loan, review the repayment terms:

  • Your loan is interest free before December 31, 2023, and principal payments are not required.
  • If the loan isn’t repaid by January 1, 2024, the loan becomes a 2-year term with a 5% fixed interest rate per year. Only interest payments are required on a monthly basis with the outstanding principal due in full by December 31, 2025.

Depending on the amount of your CEBA loan, the amount that is eligible for forgiveness will vary. The forgiveness benefit allows a portion of your loan to not require repayment:

  • If you received a $40,000 CEBA loan, you can repay 75 percent of the total amount ($30,000) by December 31, 2023 and the remaining 25 percent ($10,000) is eligible for a loan forgiveness benefit.
  • If you received a $60,000 CEBA loan, you can repay 66 percent of the total amount ($40,000) by December 31, 2023 and the remaining 34 percent ($20,000) is eligible for a loan forgiveness benefit.

The forgivable portion of the CEBA loan, $10,000 or $20,000, is taxable in the year in which the loan is received. It may be a good idea to create a repayment plan, one that helps you stay on track to pay back the repayable portion of your loan in time, so you can take advantage of the forgiveness benefit.

More CEBA Information:

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