Team analyzing bank loan paperwork in office.

Introduction to CEBA Loan Repayment

The Canada Emergency Business Account (CEBA) has been a pivotal support mechanism for small businesses throughout the COVID-19 pandemic. Established by the Canadian government in March 2020, CEBA has provided eligible businesses with interest-free loans to help them manage essential operating costs during a period of economic uncertainty. As we move towards recovery, it is crucial for businesses to be well-informed about the repayment terms and deadlines of these loans.

Repayment Deadline for CEBA Loans

The deadline for repaying CEBA loans is set for January 18, 2024. This date is significant for businesses that have benefited from the program, as it marks the point by which they must repay the loan amount to avoid incurring additional costs. It is essential for businesses to mark this date in their financial calendars and prepare accordingly to meet the repayment obligations.

Debt Forgiveness Feature of CEBA Loans

CEBA is not just a loan; it includes a debt forgiveness feature that can provide substantial financial relief to businesses. Here’s how it operates:

For the $40,000 Loan:

  • A business that repays $30,000 by the January 18, 2024 deadline will have $10,000 of the loan forgiven.
  • Failure to meet this deadline results in the loss of the debt forgiveness opportunity, and the remaining balance will convert into a 2-year term loan with a 5% interest rate.

For the $60,000 Loan:

  • Businesses that repay $40,000 by the January 18, 2024 deadline will benefit from a $20,000 loan forgiveness.
  • Missing this repayment deadline means the business will not be eligible for the $20,000 forgiveness, and the outstanding amount will convert into a 2-year term loan with a 5% interest rate.

It is important to confirm the specific terms of your loan agreement with your bank. If you anticipate difficulty in repaying the loan by the deadline, it is advisable to explore other funding options to take advantage of the loan forgiveness.

The Significance of the January 18, 2024 Deadline

The January 18, 2024 deadline is more than just a date; it’s a gateway to potential savings for businesses. By repaying the stipulated amount by this date, businesses can effectively convert a portion of their loan into a non-repayable grant. This can provide a significant boost to a business’s financial health. Conversely, missing this deadline not only forfeits the forgiveness benefit but also introduces additional interest costs on the remaining balance.


The CEBA program has offered a financial lifeline to many Canadian businesses during the pandemic. As we approach the repayment deadline, it is imperative for businesses to understand the terms and take proactive steps to benefit from the debt forgiveness feature. By doing so, businesses can maximize the advantages of CEBA and support their continued recovery and growth in the post-pandemic economy.

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