CEBA – Caution/Be Aware
Posted On: 10/12/20 - 0

Update On The CEBA Forgiveness Portion

Were you aware of all  new details regarding the “forgiveness portion ” of the CEBA loan?  The additional $20K loan will NOT be considered a separate loan for calculating the eligibility for forgiveness. You will have to meet the repayment requirements for BOTH the $40,000 loan AND the $20,000. This is a must in order to qualify for any forgiveness.

For example, the following applies if you received the full $40K initial loan and then $20K. A repayment by Dec 31 2022 of only $30K, will NOT qualify the taxpayer for the $10K forgiveness on the initial $40K loan. The following rules apply. In order to obtain the $10K forgiveness on the $40K loan and the $10K forgiveness on the $20K loan, you would have to repay $40K by Dec 31 2022.

Consider the benefit of obtaining more financing now versus the added risk of potentially losing the loan forgiveness. This event happens if you are unable to repay the additional required amounts ($10K) by Dec 31 2022.

Update – CEBA Repayment Deadlines Have Changed

The existing terms of CEBA loans require that the outstanding balance (other than the amount available to be forgiven) be repaid on or before December 31, 2022 in order to be eligible for partial loan forgiveness. The Government of Canada has recently announced the December 31, 2022 forgiveness repayment date will be extended to December 31, 2023. This applies to CEBA loan holders in good standing. If you qualify for the new extended term, your financial institution will contact you and provide details regarding the new repayment date.

For further details and examples, please contact the CEBA website.

If you need further assistance with your corporate taxes, accounting or bookkeeping, give us a call. We also build business plans,  file GST returns, and provide payroll services. Lastly, we also file personal tax returns and we have a business development coach on staff.  Phone 780-482-7297 and ask for Cheryl. 

 

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297