The CEBA program provided a $40,000 or $60,000 loan to eligible businesses to help cover non-deferrable operating costs while they were affected by COVID-19.

Terms for loans repaid prior to December 31, 2023:

• Interest rate: 0%
• Principal payments are not required.
• Forgiveness:
  • $40,000 loans: $10,000 may be forgiven if $30,000 is repaid by December 31, 2023.
  • $60,000 loans: $20,000 may be forgiven if $40,000 of the loan balance is fully repaid by December 31, 2023.

Terms for loans repaid after January 1, 2024:

• The loan will be extended to December 31, 2025 if not repaid by December 31, 2023
• Interest rate: 5% per year

Borrowers who received $60,000 in CEBA funds:

For borrowers who took out the full $60,000 CEBA loan, whether as a new applicant or through the original CEBA loan plus the expansion loan, the program provides for a blended rate of forgiveness that works out to 1/3 of the loan, if 2/3 of the original balance is paid on or before December 31, 2023. To have $20,000 of your $60,000 loan forgiven, simply repay $40,000 on or before December 31, 2023.

Example 1:

Amount Borrowed:  $60,000

Amount Repaid by December 31, 2023:  $40,000

Available Forgiveness:  $20,000

Example 2:

Amount Borrowed:  $60,000

Amount Repaid by December 31, 2023:  $35,000

Available Forgiveness:  $0

Borrowers who received $40,000 in CEBA funds:

For borrowers who took the original $40,000 CEBA loan before December 2020 and did not apply for an expansion loan, $10,000 of the loan will be forgiven if $30,000 is paid on or before December 31, 2023.

Example 1:

Amount Borrowed:  $40,000

Amount Repaid by December 31, 2023:  $30,000

Available Forgiveness:  $10,000

Example 2:

Amount Borrowed:  $40,000

Amount Repaid by December 31, 2023:  $25,000

Available Forgiveness:  $0

Borrowers who repaid the original $40,000 loan before December 2020 and received the $20,000 expansion loan:

Members who received the $20,000 CEBA expansion loan after having fully repaid their original $40,000 CEBA loan will have $10,000 of their expansion loan forgiven if the additional $10,000 is paid on or before December 31, 2023.

Example 1:

Amount Borrowed:  $20,000

Amount Repaid by December 31, 2023:  $10,000

Available Forgiveness:  $10,000

Example 2:

Amount Borrowed:  $20,000

Amount Repaid by December 31, 2023:  $8,000

Available Forgiveness:  $0