When Is Ceba Loan Due

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This week, the government announced that the deadline for repayment to repay those who have Canadian Emergency Business Account (CEBA) loans that qualify in partial repayment was extended until the 31st of December, 2022 until 30th December 2023 for all borrowers eligible and with good credit standing. When you make your payment by the new deadline, which is the 31st of December, 2023 could lead to an amount of loan forgiveness up to 20000 dollars. All outstanding loans will change to term loans of two years with an interest rate of 5 cent per year starting January 1, 2024. Loans will be completely due by December 31 2025.

The due date for the repayment of CEBA loans that qualify to be eligible for loan forgiven in part has been extended until the 31st of December, 2022 until 30th December 2023 for all borrowers eligible who are in good standing. If you pay off your loan by the new deadline, which is the 31st of December, 2023 will lead to loan forgiveness up to a third the amount of the loan (meaning that up to $20,000).

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Outstanding loans will then convert to two-year term loan with an interest rate at 5% annually beginning on January 1st, 2024. The loans will be completely due by December 31 2025.

It is the Canada Emergency Business Account (CEBA)loan support of up to $60,000 is intended to with operating costs during COVID-19. The last day to transfer or withdraw money out of your CEBA loan was January 20, 2022.

When Is Ceba Loan Due
When Is Ceba Loan Due

Forgiveness and repayment


To be eligible for the maximum amount of loan forgiveness in the amount of $20,000. The loan you took out at your financial institution must be at least $60,000 prior to the 20th of January the year 2022 (i.e. at any period between the date your account opening between January 20th, 2022 and the date of account opening). The due date for repaying CEBA loans to be eligible as partial forgiveness has been extended until November 30, 2022 until December 31, 2023.

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In order to qualify for maximum forgiveness of $20,000 you must pay back 75% of your maximum balance of your loan until the 31st of December 2023. Rest of the 25% can be forgiven up to 20,000. The illustration is in the following table:

Exemples of CEBA loan amount of forgiveness and repayment

Maximum Balance by or on Jan 20th, 2022.Amount Repaid up to or by December 31 2023Allowance Amount (Don’t pay)
Company A$60,000$40,000 (75%)$20,000 (25%)
Company B$25,000$18,750 (75%)$6,250 (25%)
Company CZero (never ever)$0$0

Applicability to interest

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1 January 2024 the balance remaining on the CEBA loan will be converted to an unsecured term loan for 5 years. The interest rate is not due until January 1st, 2024. Starting on January 1st 2024, interest will be accrued on the remaining balance of the term loans at a percentage of 5% annually and due monthly on the day that ends the month. The entire balance due and any interest that is not paid is due to be paid in full by the end of December 2025.

Find out more information details about CEBA at: Canada Emergency Business Account.

Please get in touch with us a for further details. Elliott Stone, CPA, CA is the co-founder of MD Tax Physician Services in Toronto.

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