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The Canada Emergency Business Account (CEBA) is an initiative of the Government of Canada.  The official Government website is

CEBA Loan for Food and Beverage

CEBA Loan for Food and Beverage

CEBA loan tailored for food and beverage has helped the industry survive and grow! With the CEBA loan for food and beverage, these industries can take their business to a new level because there are changes in the partial loan forgiveness repayment deadline and the final deadline as well.

But how did the CEBA loan for food and beverage help, and what is the final repayment deadline? Let’s find out!

What is CEBA for Food and Beverage?

The Canada Emergency Business Account, or CEBA, is a lifeline for food and beverage navigating the choppy waters of the COVID-19 economy. As a financial assistance program by the Canadian government, CEBA loans are designed to bolster businesses bearing the brunt of this global health crisis. 

Given the economic challenges, these loans, up to $60,000, are interest-free, providing a significant financial cushion to businesses such as food and beverage.

Notably, the Canadian government made a critical announcement on September 14, 2023, introducing further nuances to the CEBA. According to these updated guidelines, companies that apply for a loan via their financial institution will have the CEBA loan forgiveness deadline extended to March 28, 2024.

Why Opt For CEBA Loan for Food and Beverage?

The CEBA loan is an attractive option for food and beverage due to its unique loan forgiveness feature. As per the CEBA loan agreement, businesses may be eligible for up to $20,000 in loan forgiveness. This provision allows companies to save a substantial amount of money, making the refinancing of the CEBA loan an enticing prospect. 

Even if the interest rate is relatively high after the interest-free period, the potential savings from the forgiveness clause outweigh the cost. Therefore, capitalizing on this loan forgiveness feature can provide businesses, including food and beverage, with significant financial relief.

Has the CEBA Loan for Food and Beverage been Extended?

The Canadian Prime Minister announced revised deadlines for the repayment of the CEBA loans on September 14, 2023. This announcement marked a significant update for food and beverage and other businesses taking advantage of the CEBA loan. Here are the changes food and beverage need to understand:

Loan Forgiveness and Refinancing

The updated guidelines also contain details about the process for refinancing. food and beverage wishing to apply for partial loan forgiveness must submit an application to their financial institution by January 18, 2024. This application secures a refinancing extension until March 28, 2024, to qualify for loan forgiveness. 

The government has attached benefits to timely repayment, incentivizing food and beverage and other businesses. Suppose the loan is paid on or before January 18, 2024, or before the refinancing extension deadline of March 28, 2024 (given that a refinancing application has been submitted before January 18, 2024). In that case, food and beverages are eligible for partial loan forgiveness.

Savings for Food and Beverage

Loan forgiveness can substantially lower the financial burden for food and beverage. For a $40,000 loan, businesses can expect forgiveness of up to $10,000. For a $60,000 loan, food and beverage can anticipate up to $20,000 forgiveness. This provision underscores the attractiveness of the CEBA loan for food and beverage, offering substantial financial relief in these challenging economic times.

Provisions for Non-compliance with Loan Forgiveness Deadline

food and beverage should note the provisions for non-compliance with the loan forgiveness repayment deadline. Starting January 19, 2024, any outstanding balance on the CEBA loan will convert into a three-year term loan. After this conversion, the zero-interest benefit will no longer apply, and a 5% annual interest rate will be levied on the remaining balance.

Extended Deadline for Full Repayment

The deadline for full repayment has been extended to December 31, 2026, a year later than the initially stipulated date of December 31, 2025. This extension provides an extra year for food and beverage to meet their financial obligations. 

However, the 5% annual interest cost is an added burden. This shift in policy underscores the Canadian government’s commitment to provide flexibility and support for businesses, especially food and beverage, in these trying times.

What is Good Standing Food and Beverage Company?

Those unfamiliar with the term “good standing” may find the Canadian government’s use of it in the context of CEBA loan forgiveness slightly perplexing. The government’s statement indicates that “the forgiveness repayment date has been extended to January 18, 2024, for eligible CEBA loan holders in good standing.” However, the term ‘good standing,’ is left largely undefined, leaving some ambiguity in the policy for food and beverage.

In its most basic sense, ‘good standing’ signifies that a business continues to operate, and the enterprise’s owner retains the authority to make consequential decisions. This interpretation aligns with general business terminology, where a company (like food and beverage) in good standing maintains its operations and is legally compliant.

However, the Canadian government has refrained from specifying the exact meaning of ‘good standing’ in the context of the CEBA loan. Usually, a company is considered in good standing with the Canada Revenue Agency (CRA) if it has dutifully filed all required documents and settled any amounts due. But it seems improbable that this standard definition is what the government implies in relation to the CEBA loan.

Given the ambiguity surrounding the term, we can make some educated assumptions. Suppose a business maintains an active bank account and valid business registration with the CRA, including a business number. In that case, it is reasonable to infer that the food and beverage company is in ‘good standing.’ 

Therefore, such a company would likely fulfill the eligibility criteria for CEBA loan forgiveness. Still, food and beverage are encouraged to consult with their financial advisors or the CRA directly for further clarity on their standing.


CEBA loan for food and beverage is a significant step taken by the Canadian government to support its businesses during the COVID-19 pandemic. With the extended loan forgiveness deadline and updated guidelines, the CEBA loan remains a viable option for food and beverage looking to ease their financial burden. 

However, it is essential to understand the specific provisions and eligibility criteria to make the most out of this scheme. Food and beverage are advised to stay up-to-date with any policy changes and take advantage of this valuable opportunity provided by the Canadian government. Visit for the latest updates, deadlines and other related information!

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