CEBA LOAN ASSIGNMENT

Ceba loan bears 0% interest per annum and is repayable on or before December 31, 2023. A portion of this loan is forgivable provided the payment terms and conditions are met.   The forgivable portion of CEBA loan are taxable when received; but if and when repaid it is deductible.

On September 14, 2023, the Government of Canada announced a one-year extension of the final loan maturity date – from December 31, 2025, to December 31, 2026

Loan Holders that were determined to not have met the CEBA eligibility criteria for the loan  were required to repay their loan in full on or prior to December 31, 2023. The financial Institution will contact the Loan Holders to confirm their eligibility for the January 18, 2024 deadline to qualify for partial loan forgiveness.

If however the balance of the loan, net of forgivable portion, which is $40,000 was not paid in full by the due date, the full amount of the loan which was $60,000 has to be repaid in full and is subject to 5% interest per annum starting January 19, 2024, provided that the Ceba Loan Holder applied for refinancing on or before January 18, 2024, and were waiting for the refinancing application to be reviewed or the proceeds of an approved refinancing loan to be funded or applied to the CEBA Loan balance. The Ceba Loan Holder can qualify for partial loan forgiveness if the outstanding principal amount net of the potential debt forgiveness was repaid on or before March 28, 2024.

If the refinancing of Ceba Loan was not approved by the designated financial institution, it will be classified as Loan Assignment and will be transferred to Ceba Program for collection of outstanding balances. Ceba Program will send a Loan Assignment Notice to all delinquent Ceba Loan Holders that contain information on how to manage Ceba Loan, make payment and set up a payment arrangement with Canada Revenue Agency. A 12-digit Ceba Identification number will be provided to each Ceba Loan Holder in order to register for a Ceba Portal Account. In a dire situation whereby a Ceba Loan Holder is not able to repay the Ceba Loan, Canada Revenue Agency will review the circumstances on a case-by-case basis in order to establish a payment arrangement depending on the Ceba Loan Holder ability to pay.

For further inquiry you can contact the CRA Ceba Contact Centre at 1 800 361 2808.