All program eligibility determinations, application outcomes and repayment deadlines are now final and cannot be changed. No organization involved in administering the CEBA program has the authority to grant exceptions to the CEBA eligibility criteria, including your financial institution.
The forgiveness repayment date has been extended to December 31, 2023 for eligible CEBA loan holders in good standing. Applicants that qualified for the new extended term have been contacted by their financial institution with details regarding the new repayment date.
All applicants that meet CEBA eligibility criteria will have the following terms of forgiveness:
If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2023 will result in loan forgiveness of 25 percent (up to $10,000).
Example:
Maximum Amount Borrowed: $40,000
Amount Repaid By December 31, 2023: $30,000
Available Forgiveness: $10,000
If you borrowed more than $40,000 and up to $60,000:
If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed and are described here.
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before December 31, 2023 will result in a single loan forgiveness up to $20,000 based on a blended rate: 25 percent on the first $40,000; plus 50 percent on amounts above $40,000 and up to $60,000.
Example:
Maximum Amount Borrowed: $60,000
Amount Repaid By December 31, 2023: $40,000
Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)
Loan Interest, Repayment & Maturity:
- 0% per annum interest until December 31, 2023
- 5% per annum interest starting on January 1, 2024; interest payment frequency to be determined by your financial institution
- No principal repayment required before December 31, 2023
- If loan remains outstanding after December 31, 2023, only interest payments required until full principal is due on December 31, 2025
If you have any questions, reach out to us for further clarity.
Stay healthy,
Greg Libbrecht and the team at Platinum Business Services