CEBA (Canada Emergency Business Account) is a loan program designed to help Canadian small businesses affected by the COVID-19 pandemic. The program provides interest-free loans of up to $60,000 to eligible businesses to help cover their operating costs during the pandemic.
CEBA loans must be repaid by December 31, 2022. However, if at least $20,000 of the loan is repaid by the end of 2022, the remaining balance of up to $40,000 will be forgiven. This means that businesses that are able to repay $20,000 of their CEBA loan will only need to pay back the remaining $40,000 if they are able.
To repay a CEBA loan, businesses can do so through their financial institution. Repayments can be made in a lump sum or in installments over time. It is important to note that interest will not accrue on CEBA loans.
If a business is unable to repay its CEBA loan by December 31, 2022, it will be required to repay the full amount of the loan, including any amount that was previously forgiven. It is important for businesses to carefully consider their ability to repay the loan before applying for CEBA.
In summary, CEBA loans provide financial support to Canadian small businesses affected by the COVID-19 pandemic. If at least $20,000 of the loan is repaid by December 31, 2022, the remaining balance will be forgiven. Repayments can be made through a financial institution and interest will not accrue on the loan. Businesses should carefully consider their ability to repay the loan before applying for CEBA