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

CEBA Extended to January 2024: True or False?

CEBA Extended to January 2024
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In the ever-changing finance landscape, rumour and speculation can sometimes lead the narrative. One such murmuring currently making the rounds is about CEBA extension. But is CEBA repayment and partial loan forgiveness extended, or is this news just a rumour? Let’s dive into the details to answer, “Is CEBA extended to January 2024.”

CEBA Loan Initial Launch

CEBA Extended to January 2024


The Canada Emergency Business Account (CEBA) came into existence on April 9, 2020. At that time, it became a financial lifeline for businesses facing hardships due to COVID. The program injected an impressive $49 billion into the economy. It offered a much-needed respite to approximately 900,000 businesses. Most of them were small to medium-sized establishments grappling with the pandemic.

The scheme was elegantly designed, offering a zero-interest loan of $40,000. Later, it extended to $60,000, with a portion forgivable if certain conditions were met. The goal was to help businesses meet non-deferrable costs that piled up irrespective of the slowdown. Expenses include rent, utilities, insurance, taxes, and employment costs. So, CEBA served as a financial cushion, facilitating business operations in post-COVID.

Since its debut, the government has fine-tuned the CEBA program. This was to ensure it meets the evolving needs of small businesses. The modifications included:

  • broadening the payroll eligibility range from $20,000 to $1.5 million
  • enabling owner-operated businesses without a payroll
  • sole proprietors earning business income
  • family-owned corporations paying dividends rather than payroll to enjoy the initiative.

Businesses operating from a personal banking account were given access to this program. They had previously been unable to apply due to the need for a business banking account.

Extension for CEBA Loan Forgiveness Deadline: January 18, 2024

New CEBA Extension to January 18, 2024

Close to 900,000 businesses leveraged the benefits of the CEBA loans. But by the end of June, only a fifth of these businesses had managed to repay their loans in full.

On September 14, 2023, the Prime Minister announced revised deadlines for the repayment of the CEBA loans. This constituted an additional year for term loan repayment and extended flexibilities for loan holders wishing to qualify for partial loan forgiveness, up to 33 per cent.

The revised repayment deadlines provide a window until January 18, 2024. December 31, 2023, was the previous date for CEBA loan holders to square their accounts.

For refinancing, an application to the financial institution is required. Note that the last date to apply for partial loan forgiveness is January 18, 2024. This will secure a refinancing extension until March 28, 2024, to qualify.

To incentivize businesses, the government has attached benefits to timely repayment. If the loan is repaid on or before the newly proposed deadline of January 18, 2024, or before the refinancing extension deadline of March 28, 2024 (if a refinancing application has been submitted prior to January 18, 2024), the loan holder will qualify for partial loan forgiveness. This forgiveness entails $10,000 for a $40,000 loan and $20,000 for a $60,000 loan, lowering the financial burden.

There are provisions for a business that doesn’t meet the loan forgiveness repayment deadline. Beginning January 19, 2024, any outstanding balance on the CEBA loan will convert into a three-year term loan. This conversion implies that the zero-interest benefit will no longer apply. It means a 5% annual interest rate will be levied on the remaining balance.

Remember, the deadline for full repayment is December 31, 2026. It is now a year later than the initially stipulated date of December 31, 2025. This change provides an extra year for businesses to fulfil their financial obligations. But, there is the added cost of the 5% annual interest. This shift emphasizes the Canadian government’s commitment to flexibility and support for businesses. It shows their understanding of business conditions in these challenging economic times.

Small Business Minister Rechie Valdez, in an interview, expressed that she is aware of the fact that there are sectors that are hardest hit. In this regard, she pointed towards repayment extension. Her words pointed out that businesses now have more time to repay the loan. And there are now flexible repayment options for them, especially small businesses.

(Contact and have a proper consultation about your CEBA application and the details of loan forgiveness.)

CEBA Extended: Reaction and Response

Response to CEBA extension

This second extension hasn’t been universally accepted. While more than 256 business groups had petitioned for an extension, the responses from industry leaders have been mixed.

Dan Kelly, the president of the Canadian Federation of Independent Business, expressed his disappointment. He stated that the plan overlooks the forgivable portion’s loss. Beth Potter, the president of the Tourism Industry Association of Canada, felt the extension fell short of addressing the financial strain faced by their members.

The federal NDP’s small business critic Richard Cannings has called the 18-day extension a “cruel joke” in a media release Thursday. He said that unless the Liberals really want to see a quarter of a million small businesses go under, and countless local jobs lost, they must grant a real extension.

Benefits of CEBA New Forgiveness Repayment Extension

CEBA Extended to January 2024: Benefits

Despite the differing opinions, the extension will give businesses more time to manage their finances. It offers businesses much-needed financial support. This allows them some breathing room to plan strategically for a gradual recovery. Businesses can also leverage this opportunity to invest in digital transformation initiatives. They can also adapt to the changing consumer landscape, and prepare for a potential second wave or future crises.


The news about extending the CEBA forgiveness deadline until January 18, 2024, is true. And the loan repayment deadline until December 31, 2026, is also accurate. This latest development gives businesses more time and flexibility to repay their loans. It also ensures they have enough support to grow in these challenging times.

While opinions may differ, the fact remains that CEBA has been a crucial lifeline for businesses throughout the pandemic. And this extension only reinforces its significance in revitalizing the Canadian economy.

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