As the prevalence of COVID-19 decreases, so does the need for Government assistance programs. Crowe MacKay’s trusted advisors share an update on the CEBA and RRRF loan repayment deadline extension as well as which programs should be reported on your income tax return.
CEBA and RRRF Loan Deadline Extension
As the prevalence of COVID-19 lessens, so does the need for Government assistance programs. Crowe MacKay’s trusted advisors share an update on the CEBA and RRRF loan repayment deadline extension.
The Federal Government extended the deadline for repayment of the Canada Emergency Business Account (CEBA) loans to qualify for partial forgiveness from December 31, 2023, to January 18, 2024, for eligible borrowers in good standing. For CEBA loan holders who make a refinancing application with the financial institution that provided their CEBA loan by January 18, 2024, the repayment deadline to qualify for partial loan forgiveness now includes a refinancing extension until March 28, 2024.
Repayment on or before the new deadline of January 18, 2024 (or March 28, 2024, for those who qualify for the refinancing extension) will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000). Loans still outstanding after the repayment deadline will be converted to three-year term loans with an annual interest rate of 5%, with the term loan repayment date extended by an additional year from December 31, 2025, to December 31, 2026.
The repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund (RRRF) has also been extended to January 18, 2024. If you cannot pay the outstanding amount by this date, you will have one extra year, to December 31, 2026, to repay the entire contribution balance.