Canada Emergency Business Account (CEBA)
The future of your CEBA loan
You can get more details on repayment terms and forgiveness for your CEBA loan from the Government of Canada. The government is no longer accepting CEBA applications, or applications for remediating or reclassifying previous applications.
Important CEBA program details
Interest free until December 31, 2023
Your CEBA loan is interest free until December 31, 2023. After that, any remaining balance converts to a two-year term loan with 5% annual interest, due on December 31, 2025. Interest will be charged monthly beginning January 1, 2024.
CEBA loan forgiveness
If you repay your CEBA loan (minus the forgiveness amount) before December 31, 2023, you may be eligible for up to 33% of the remaining balance to be forgiven. Other conditions may also apply.
What you need to know about your loan
| Grace period | CEBA loans don’t accrue interest until after December 31, 2023. |
| Forgiveness | If your CEBA loan is in good standing, and there are no unresolved issues with your previous applications, a portion of your loan may be forgiven: $20,000 for a $60,000 loan and $10,000 for a $40,000 loan. To qualify for forgiveness, you must repay your CEBA loan (minus the forgiveness amount) before December 31, 2023. The forgiveness portion of the CEBA program is optional. You may choose not to claim forgiveness—we recommend that you speak with your accountant about the tax implications. If you choose to claim forgiveness on your CEBA loan, please talk with an ATB team member. Other conditions may apply. |
| Repayment | You can make payments on the principal of your loan any time. Talk with an ATB team member to arrange payment toward your CEBA loan. |
| Interest | Any remaining balance on your loan as of December 31, 2023 will convert to a two-year term loan with 5% annual interest. Interest-only payments will be automatically deducted every month from your designated ATB account. |
| Full repayment deadline | For eligible borrowers, the full repayment deadline is December 31, 2025. |
Frequently Asked Questions
Please visit the Government of Canada’s CEBA site for full program details and dates. For questions, you can call the government’s CEBA Call Centre at 1-888-324-4201. They’re open 9am–6pm EST, Monday to Friday.
The repayment terms for all CEBA loans are the same, regardless of their size.
All loans are interest-free until December 31, 2023. On January 1, 2024, they will convert to two-year term loans with 5% annual interest. The interest payment frequency is determined by your financial institution.
No principal payment is required before December 31, 2023. If any balance remains outstanding after that, only payments on interest are required until the full balance of the principal is due on December 31, 2025.
Your loan forgiveness amount depends on how much you borrowed.
- For a $40,000 loan, if you repay $30,000 by December 31, 2023, the remaining $10,000 may be forgiven.
- For a $60,000 loan, if you repay $40,000 by December 31, 2023, the remaining $20,000 may be forgiven.
- For a $20,000 loan expansion, if you repay $10,000 by December 31, 2023, the remaining $10,000 may be forgiven.
If you choose to repay your CEBA loan and want to claim the forgiveness portion, you will only be required to make the payment without including the forgiveness amount.
The funds from this loan can only be used to pay non-deferrable operating expenses of the business, including payroll, rent, utilities, insurance and property tax. The funds may not be used to cover any payments or expenses including prepayment or refinancing of existing debt, payments of dividends, or distributions and increases in management compensation.
For information on CEBA restrictions, visit the Government of Canada’s CEBA Questions site.
CEBA is an interest-free loan until December 31, 2023. Beginning on January 1, 2024, interest will be 5% per year for two years. The loan must be paid back in full by December 31, 2025.
The forgivable portion of your CEBA loan ($10,000 or $20,000) is taxable for the year in which you received your loan. Please speak with your accountant or the CRA regarding the tax implications of claiming forgiveness.
To make a repayment or payment towards your CEBA loan, please reach out to your relationship manager, an ATB Branch or ATB Call Centre where a team member will be happy to guide you.
Your Repayment Plan term is determined by the Government of Canada using your own criteria, and isn’t negotiable or able to be amended.