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Navigating the CEBA Loan Extension: What Businesses Need to Know

In this crucial update, we delve into the recent extensions to the Canada Emergency Business Account (CEBA) loans and their implications for your business. The CEBA program, initiated in 2020 to aid small businesses and not-for-profits during the pandemic, has undergone significant updates, extending deadlines and introducing new provisions.

The CEBA program initially offered interest-free loans ranging from $40,000 to $60,000 to eligible businesses facing temporary revenue reductions due to COVID-19. Originally set to conclude on December 31, 2022, the repayment deadline has seen extensions: first to December 31, 2023, and now, a second extension until January 18, 2024.

Original deadline

December 31, 2022

First extension

December 31, 2023

*New* Second extension

January 18, 2024 (see below for details).

The second extension was only 18 days long and intended to help businesses that might be busy during the holiday season. This brief extension is designed to accommodate businesses navigating year-end financial pressures.

Extension Summary Points

Partial loan forgiveness – Businesses in good standing can enjoy up to 33% loan forgiveness by adhering to the new payment deadlines.

Updated Extended Deadlines

  • Extension of the repayment deadline – The date to qualify for partial loan forgiveness has been extended from December 31, 2023, to January 18, 2024.

An additional extension until March 28, 2024, is available for those applying for

refinancing by January 18, 2024.

  • Relief for refinancing applicants   – Those applying for refinancing have until March 28, 2024, to secure new financing and still qualify for partial loan forgiveness.

Conversion to a Loan if Deadlines are not met

  • Conversion to term loans  – Outstanding loans as of January 19, 2024, will convert to three-year term loans with a 5% annual interest rate. The repayment date gets extended to December 31, 2026.

  • Loan Interest – This will stay at 5% per year.


Here are some sample scenarios to show how these extensions could impact businesses through real-life situations.

1: Karen owns a small restaurant and has a $60,000 CEBA loan. Despite her best efforts, she can’t repay the full amount by the initial deadline. Thankfully, she can now benefit from a $20,000 loan forgiveness if she manages to repay or refinance the loan by March 28, 2024. Her loan application must be completed by January 18, 2024.


2: Joe owns an online sales business. He has a $40,000 CEBA loan but cannot repay it fully by January 18, 2024. The loan will convert to a three-year term loan with a 5% annual interest, allowing him to make smaller monthly payments of around $167 and defer the principal payment until December 31, 2026.

 3: Chris applied for refinancing to pay off a $60,000 CEBA loan. Although he couldn’t get a response from their bank by January 18, 2024, the new extension gives them until March 28, 2024, to secure new financing and enjoy a $20,000 loan forgiveness.

Planning Ahead

  • Assess Your Situation: Plan ahead to determine whether you can repay the loan, less the forgivable amount, by January 18, 2024.

  • Financial Review: Review you financial statements, cash flow, and explore refinancing options.

  • Act Promptly: If liquidating assets is necessary, take action promptly as funds may take time to become available.

  • Consultation: Book an appointment with your financial institution to discuss refinancing options before the deadline.

If you cannot pay the loan and obtain financing, The loan will automatically convert to a term loan. We recommend that you still speak with your lender to discuss the details of this before January 18, 2024.

Final Reminder

The ultimate deadline for action is January 18, 2024.


If you need personalized advice or further assistance, schedule a consultation with one of our team members.


Stay informed and proactive in managing your CEBA loan, leveraging the extensions to safeguard your business during these challenging times.

For comprehensive details, refer to the federal government’s news release and CEBA overview.


Clearly Financials offers cloud-based accounting and corporate tax services to small businesses in Edmonton, AB. We provide a full suite of services including: bookkeeping, payroll, GST filing, compiled financial statements, and corporate tax returns all designed to help your business succeed.

Our team is dedicated to getting small business owners up and running quickly, which is why we offer Business Foundation Services such as business plan creation and business structure selection (e.g., incorporating or operating as a sole-proprietor). With our Business Performance Management services, we help you grow your business and profits by setting goals, creating budgets, and forecasting.

Our office is conveniently located in the heart of Old Strathcona, and we offer easy online scheduling so you can book an appointment at your convenience.

Whether you're just starting out or you're looking to take your business to the next level, Clearly Financials is here to help. Contact us today to learn more.



The information provided in this blog post is a simplified overview of complex matters and may not cover all the nuances of your particular accounting or tax situation. The content is intended for general educational purposes only and should not be taken as legal or financial advice. We strongly recommend consulting with a qualified professional before making any financial decisions based on the information provided. Please note that tax laws and regulations can change frequently, and we cannot guarantee the accuracy or completeness of the information provided in this post.


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