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 as well as which programs should be reported on your
income tax return.
CEBA and RRRF Loan 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, 2022, to December 31, 2023,
for eligible borrowers in good standing.
Repayment on or before the new deadline of December 31, 2023,
will result in loan forgiveness of up to a third of the value of
the loans (meaning up to $20,000). Loans that are still outstanding
after the repayment deadline will be converted to two-year term
loans with an annual interest rate of 5% commencing on January 1,
2024, with loan repayments fully due by December 31, 2025.
