On December 4, 2020, the Government announced that businesses that are continuing to face financial hardship as a result of COVID-19 are able to apply for the second CEBA loan of up to $20,000 – on top of the initial $40,000 that was available to small businesses earlier in the year.
Half of the additional financing, up to $10k, will be forgivable if the loan is repaid by December 31, 2022.
The expansion increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid on time.
The CEBA website published additional frequently asked questions, key items are summarized below:
| Terms | If repaid on or before December 31, 2022 | If outstanding after December 31, 2022 |
| Interest rate | 0% per annum | 5% per annum |
| Repayments | No principal payment required | Interest only until maturity |
| Maturity date | December 31, 2022 | December 31, 2025 |
| Maximum debt forgiveness | $20,000 | $0 |
If you have any questions regarding CEBA, feel free to reach out. The K&P CPAs team can provide expert advice on all things finance, including business valuation, advisory, and taxation.
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