The Canada Emergency Business Account.
Latest Updates
Outstanding Canada Emergency Business Account (CEBA) loans have now converted to interest-bearing loans at 5% interest per annum. The deadline for partial loan forgiveness has passed, unless you applied for a refinancing loan at Coast Capital by January 18, 2024. If you have applied for a loan to refinance your CEBA loan, your partial loan forgiveness deadline is March 28, 2024, although interest will accrue after January 19, 2024.
Please visit the Government of Canada’s website for the CEBA program to learn more.
We will automatically debit the interest-only monthly payments required by the CEBA program at the end of each month. However, we encourage you to log into Online Banking to send us a message or to phone us at 1.888.517.7000 (option 3 for Business) to set up additional repayments, so that you will be able to pay down the loan principal prior to the final repayment date on December 31, 2026.
CEBA Program Overview
The CEBA program provided a loan of up to $60,000 to eligible businesses affected by COVID-19 to help cover non-deferrable operating costs.
Terms for loans repaid after the partial forgiveness deadlines:
- The final repayment date for the loan is December 31, 2026.
- Interest-only payments are required between January 19, 2024 and November 30, 2026.
- Principal payments are not required until the final repayment date.
- Interest rate: 5% per year.
For more details on the CEBA loan, please visit the Government of Canada’s CEBA program website.
Loan Forgiveness
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 amount of forgiveness. The blended forgiveness works out to 1/3 of the loan, if 2/3 of the original balance is paid on or before the partial forgiveness deadline of January 18, 2024 (March 28, 2024 for members who applied for a refinancing loan through Coast Capital). To have $20,000 of your $60,000 loan forgiven, simply repay $40,000 on or before the applicable forgiveness deadline.
Example 1:
Amount Borrowed: $60,000
Amount Repaid by the partial forgiveness deadline: $40,000
Available Forgiveness: $20,000
Example 2:
Amount Borrowed: $60,000
Amount Repaid by the partial forgiveness deadline: $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 the partial forgiveness deadline of January 18, 2024 (March 28, 2024 for members who applied for a refinancing loan through Coast Capital).
Example 1:
Amount Borrowed: $40,000
Amount Repaid by the partial forgiveness deadline: $30,000
Available Forgiveness: $10,000
Example 2:
Amount Borrowed: $40,000
Amount Repaid by the partial forgiveness deadline: $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 the partial forgiveness deadline of January 18, 2024 (March 28, 2024 for members who applied for a refinancing loan though Coast Capital).
Example 1:
Amount Borrowed: $20,000
Amount Repaid by the partial forgiveness deadline: $10,000
Available Forgiveness: $10,000
Example 2:
Amount Borrowed: $20,000
Amount Repaid by the partial forgiveness deadline: $8,000
Available Forgiveness: $0
For further detail on the forgiveness terms of the CEBA program, please visit the Government of Canada’s CEBA website at https://ceba-cuec.ca.
Loan Repayment
To set up payments beyond the required interest-only monthly payment, or to pay off your CEBA loan, please contact your Coast Capital Small Business Relationship Manager or the Business Advice Centre at business@coastcapitalsavings.com or 1.888.517.7000, option 3 (toll-free in North America).
Frequently Asked Questions
Up to January 18, 2024, the interest rate was 0%. Starting January 19, 2024, interest will accrue on the balance of the loan at the rate of 5% per year, payable monthly on the last day of each month.
Starting in January 2024, we are required to debit interest-only payments from your account each month. We will automatically deduct these payments on the last day of each month from the chequing account associated with your CEBA loan.
Principal repayment is not required until December 31, 2026, at which time you must repay your CEBA loan in full.
To ensure that the final CEBA loan payment is manageable for your business, we encourage you to contact Coast Capital now to set up additional payments towards principal.
To be eligible for partial forgiveness, the full amount of the CEBA loan, minus the partial forgiveness, must have been repaid by January 18, 2024, unless you have applied for a Coast Capital loan to refinance your CEBA loan. If you have a CEBA loan with any outstanding funds on January 19, 2024 and you have not applied for a refinancing loan through Coast Capital, your loan is not eligible for partial loan forgiveness.
If you have applied for a Coast Capital loan to refinance your CEBA loan by January 18, 2024, you will be eligible for partial forgiveness if the full amount of the CEBA loan, minus the partial forgiveness and including any accrued interest, is repaid by March 28, 2024.
The CEBA program has now provided this information. You should have received an email from Coast Capital in October 2022 outlining how to proceed. If you have not received this information, please contact business@coastcapitalsavings.com, or call us at 1.888.517.7000 (toll-free in North America).
Please visit https://ceba-cuec.ca, the Government of Canada’s website for the CEBA program, to learn more.