The CEBA loan repayment deadline of January 18, 2024 is fast approaching. All businesses that took advantage of the funding, which included a forgivable portion of up to $20,000 of the loan, should budget accordingly to repay the loan. Failure to repay the loan by the deadline will result in forgoing the forgivable portion.
Loan Forgiveness and Extended Deadline
Repaying the balance of the loan on or before January 18, 2024 will result in loan forgiveness of up to $20,000. The deadline is extended to March 28, 2024 if a refinancing application is submitted prior to January 18, 2024 at the financial institution that provided the CEBA loan. However, annual interest of 5% per annum will accrue starting January 19, 2024, which must be paid by March 28, 2024, along with the principal, in order to continue to qualify for the partial debt forgiveness. If you received the CEBA loan, the loan itself is not taxable, but any portion of the loan that is forgivable must be included in your business income.
GG Observations
We recommend that business owners’ budget for the repayment of the CEBA loan by the January 18, 2024 deadline. The maximum loan forgiveness of $20,000 represents 33% of the original loan and failure to repay the loan by the deadline will result in forgoing this benefit.
