update: CEBA LOAN extension
The Government of Canada promised to support Canadians during these economic times, and through measures like the Affordable Housing and Groceries Act, cutting back on government spending and extended CEBA (Canada Emergency Business Account) repayment deadlines - that is exactly what we are doing.
As the MP for Oakville, I take very seriously the challenges facing small businesses and it is my responsibility to listen to your concerns and address them with my federal colleagues in Parliament. I have consulted with countless businesses, Business Improvement Associations and Chambers of Commerce in Oakville and across the country. The common opinion: CEBA loan holders are not confidant that they will have the means to repay outstanding balances by December 31, 2023.
On September 14, 2023, the Prime Minister announced the extension of CEBA repayment deadlines:
➡️ Extension of term loan repayment until December 31, 2026, at a lower than market interest rate of 5%;
➡️ Extension of partial loan forgiveness of up to 33% until January 18, 2024;
➡️ This deadline is extended to March 28, 2024 if loan holders make a successful refinancing application with their bank before January 18, 2024.
The first option applies to businesses that are unable to pay their loan balance by January 18, 2024. The second option aims to give businesses more time to generate revenue from the holiday season so they can repay their loan balance before January 18, 2024 and therefore qualify for partial loan forgiveness. We also know that it can take time for banks to approve and process a refinancing application, which is why we created a buffer period until March 28, 2024.
However, if loan holders do not repay their balance by January 19, 2024 nor submit a refinancing application prior to January 18, 2024, outstanding loans will automatically convert to three-year term loans due on December 31, 2026 subject to a lower than market interest rate of 5%.
To date, CEBA has delivered $49 billion to nearly 900,000 small businesses and not-for-profit organizations, however that does not mean our work is done. Canadians still need our help. I want to ensure that loan holders understand the implications of the extended CEBA repayment deadlines so that your organization can take advantage of it. If you need further clarification, please do not hesitate to reach out to my constituency office using the contact information listed at the bottom of the page.
The federal government will never waiver in times of need, and as your representative in Ottawa, I will always be here to listen and advocate on your behalf.
Additional Support Resources for Businesses
The Federal Economic Development Agency for Southern Ontario (FedDev) is a federal department that supports economic growth across southern Ontario. Everyday, FedDev programs and services invest in businesses that advance innovation, promote diversification and provide important services to our communities.
FedDev Ontario is streamlining its application process to better serve southern Ontario businesses and organizations. The Agency is making the process easier and more predictable while ensuring our investments continue to respond to the most critical growth opportunities for Canadians.
Applications will now be accepted three times per year (fall, winter, and spring), with the first intake now open.
There are two easy ways to apply:
Funding for businesses (for-profit) – up to $10 million for companies to grow, innovate and diversify.
Funding for organizations that help businesses grow (not-for-profit) – up to $10 million for organizations to grow regional ecosystems, transform local economies, and foster inclusive and sustainable economic growth.
There’s no need to sort through programs to apply for funding. Let FedDev Ontario help find the funding that is right for you.
Contact FedDev Ontario by email or at 1-866-953-5505 at any time to express your interest in applying, discuss your needs, or ask questions. The Agency also launched a dedicated Indigenous landing page which will help prospective applicants access funding opportunities and support.