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2024 CEBA Repayment Guide: What you need to know

The latest Canada Emergency Business Account (CEBA) deadline for loan forgiveness has passed (January 18, 2024). However, if you applied for a refinancing loan on or before that date, you qualify for a special extension until March 28, 2024, to keep the forgivable portion of up to $20,000.

If you didn’t apply for refinancing, you’ve lost the forgivable portion, and your CEBA will now convert to a term loan that can be paid over the next three years.

Whether or not you applied for refinancing before the deadline, there are important details for you to consider. Let’s look at both scenarios to see what you can expect in 2024 and beyond.

I didn’t apply for a refinancing loan

If you missed the January 18 deadline and did not receive a special extension from your bank, unfortunately you’ve lost on the forgivable portion. Here’s some FAQs to help you understand your next steps:

  • What’s the new deadline to repay my CEBA loan? Your CEBA will now convert to a term loan that can be repaid over the next three years, until December 31, 2026.
  • Will I be charged interest? Yes, you will be charged 5% monthly interest on the full outstanding balance of your CEBA loan (including the forgivable portion) and can pay the principal amount before the 2026 term loan repayment deadline.
  • What are my refinancing options? Journey Capital provides a CEBA Refinancing Program where you can choose the solution that best fits your business.

I’ve applied for a refinancing loan

Let’s say you’ve applied for a refinancing loan on or before the January 18th deadline with the financial institution (FI) that provided your CEBA. That’s great! You now qualify for a special extension period until March 28, 2024, to keep the forgivable portion. And what’s next? Here’s some FAQs:

  • How do I prove I applied for refinancing? There’s no standard documentation to prove you’ve applied for refinancing on or before January 18, 2024. Each bank has its own process, so the best course of action is to check with yours and ensure you receive any decisions in writing.
  • What if I’m rejected for refinancing? If you’re rejected for refinancing by your CEBA bank, you can still qualify for the March 28 extension. Just make sure your account is in good standing and your FI confirms your access to the new deadline.
  • Will I be charged interest during this special extension period? Yes, you will be charged 5% interest starting on January 19, 2024, on the outstanding amount of your CEBA loan (including the forgivable portion).
  • Will there be any new extensions? Unfortunately, no. Although there have been extensions in the past, all deadlines are now final.
  • Can I find alternative sources of funding? Yes, you can. While you needed to apply for refinancing with the original FI that issued your loan, you don’t need to take that loan. You’re allowed to seek alternative funding before the March 28 deadline.

If you’re looking for financing to repay your CEBA loan, Journey Capital has the flexible solutions for your business. Simply apply online, review your options with a dedicated lending advisor, and get your funds in as little as 24 hours. Apply online here or reach a dedicated lending advisor at (855) 704-7458.