Canada Emergency Business Account (CEBA)

Key information.

The section contains key details about the Canada Emergency Business Account (CEBA) program from the Government of Canada. To learn more, visit the official CEBA program overview website.

0% 5%

Interest

The CEBA loan is currently interest-free. From Jan 19, 2024, outstanding balances will be charged an annual interest rate of 5%. The full loan, plus interest, will be due Dec 31, 2026.²

Up to $10k

Forgiveness for loans of $40,000

If you repay $30,000 of loans totaling $40,000 by Jan 18, 2024, the remaining $10,000 may be forgiven. This deadline is extended to Mar 28, 2024, if you apply to refinance your CEBA loan before Jan 18 with the same financial institution from which you received it.²

Up to $20k

Forgiveness for loans of $60,000

If you repay $40,000 of loans totaling $60,000 by Jan 18, 2024, the remaining $20,000 may be forgiven. This deadline is extended to Mar 28, 2024, if you apply to refinance your CEBA loan before Jan 18 with the same financial institution from which you received it.²

Refinancing extension

An additional 70 days to repay

If you apply to refinance your CEBA loan prior to Jan 18, 2024, up to 33% of your loan may be eligible for forgiveness until March 28, 2024. This extension is only available to loanholders who refinance with the same financial institution that administered their CEBA loan.²

You may save costs and preserve capital by taking out a new loan to repay your CEBA loan – if you use it to take advantage of loan forgiveness and lower your total debt. If you apply to refinance your CEBA loan prior to Jan 18, 2024, with the same financial institution from which you received it, you may be eligible for forgiveness until Mar 28, 2024.² Our team of advisors can walk you through strategies that put you in your best financial position.

If you got your CEBA loan from Vancity, you can apply for our CEBA Refinancing Loan before December 15, 2023, to lock in your forgiveness extension. If eligible, your loan will be paid out in early January 2024 to ensure you don't miss any repayment deadlines or accrue any unwanted interest.¹ ³

Inquire now

Automate your savings.

If possible, start saving for repayment as soon as you can with our no monthly fee Jumpstart™ High-Interest Savings Account for businesses.

Even if you’re able to repay some or all of your loan right now, putting your funds in a savings account while the loan remains interest free is a way to make the most of it.

Consider automating your savings with one of these features:

Recurring transfers
Automatically move an amount at a frequency you specify. You can set this up in Online Banking under “Transfer Money” or learn how.
Max balance sweep
Set any amounts above a threshold in your chequing account to automatically get moved to your savings. Visit a branch or call us to set this up.

No bad questions.

Should I borrow money to repay my CEBA loan?

This depends on how far you are from the forgiveness threshold and your operational needs.

For example

Let’s say you have a CEBA loan totaling $60,000 and you are eligible for $20,000 of loan forgiveness, but you have not started saving for repayment.

If you apply before Jan 18, 2024 to borrow $40,000 from the same financial institution which gave you the CEBA loan initially, and you are able to put the entire amount towards your CEBA loan before Mar 28, 2024 to hit the repayment threshold, you’ll be forgiven the whole $20,000.

While you will be charged interest and principal for your new loan, these expenses could be offset by the reduction in the amount you need to repay — from $60,000 down to to $40,000 — thanks to loan forgiveness.

We can do the math for your unique situation or even look at your whole financial picture for more options. If you got your CEBA loan from Vancity, you can apply for our CEBA Refinancing Loan before December 15, 2023, to lock in your eligible forgiveness. Terms and conditions apply.¹

Talk to us early and you can rest easy with a plan in place.

What if I’m unable to repay my loans by Jan 18, 2024?

Starting Jan 19, 2024, if you still have a loan payable, it will incur an annual interest of 5%. Interest will be payable monthly, and the entire balance will be due Dec 31, 2026.

If you apply to refinance your CEBA loan prior to Jan 18, 2024, you may still be eligible for forgiveness until Mar 28, 2024; however, interest will begin to accrue starting Jan 19, 2024, either way.²

If you have other loans or debt at that time, you may want to consider talking to us about debt consolidation. Reach out to us at any time to learn about other ways we can support you.

Where can I find how much I owe?

You can login to Online Banking to view your CEBA loan under Accounts. The loan balance shown excludes forgiveness.

For example, if you have a $40,000 loan and you’re eligible for $10,000 forgiveness, you’ll see $40,000 as your loan balance. If you pay $30,000 on or before Jan 18, 2024, forgiveness will be applied when repayment is made, and your loan will be fully paid off.

However, if you apply to refinance your CEBA loan prior to Jan 18, forgiveness will be applied when repayment is made on or before Mar 28, 2024.²

Where do I go to repay my loan?

To make partial payments online, log in to Online Banking, select “Transfer Money” in the left navigation and transfer to payments to your CEBA loan account. Loan forgiveness is only available if payments to the CEBA loan account cumulatively meet the threshold amount for forgiveness.

To pay off or make the final payment, please call us or visit a branch. Your final payment and any eligible forgiveness will be applied to the loan in 7–10 business days.

We encourage you to first book an appointment with a business advisor to explore the repayment options and timelines that work best for you.

For all other inquiries related to your CEBA loan and repayment, get in touch with an advisor today.

Book an appointment

View legal details

¹ This opportunity to apply is available for a limited time and the application period will end on Friday, December 15, 2023. Applications are subject to a one-time non-refundable fee of $150. Vancity reserves the right to terminate this opportunity to apply or limit the number of approved loans under this offer at our sole discretion, and we may do so without prior notice. Loan approvals, terms, and interest rates are entirely within the discretion of Vancity and are subject to our standard lending policies and criteria. Approved loans are specifically intended to be used for repaying the outstanding Canada Emergency Business Account (CEBA) program loan balance owed by a qualified Vancity business member. Fees will apply. Personal guarantee(s), security and additional documentation may be required. Other conditions may apply.

² CEBA eligibility has been established based on the criteria determined by the Government of Canada. Vancity has no authority to grant exceptions to these criteria. This content outlines repayment terms for eligible CEBA loan holders in good standing. The updated key dates of the CEBA program are outlined below for your reference. Please see here for more details.

Interest
1. 0% per annum interest until January 18, 2024.
2. 5% per annum interest starting on January 19, 2024.
Repayment & Maturity
1. No principal repayment is required before January 18, 2024. The borrower is not obligated to make any principal repayments on the refinancing loan before January 18, 2024.
2. If the loan remains outstanding on January 19, 2024, it will automatically convert into a non-amortizing term loan. The Borrower will be required to make full principal repayment on or before December 31, 2026.
Debt Forgiveness
1. If the outstanding principal, other than the amount of potential debt forgiveness, is repaid by January 18, 2024, the remaining principal amount will be forgiven.
2. If you submit a refinancing loan application to Vancity prior to January 18, 2024, but require a grace period in order to finalize the payout of your CEBA loan, you can still qualify for partial forgiveness if the outstanding principal of your CEBA loan (other than the amount of potential debt forgiveness), plus any applicable interest is repaid by March 28, 2024.

³ This loan and its features may change at any time and may be withdrawn by Vancity at any time for any reason without prior notice to the member. As of October 1, 2023, Vancity’s prime rate is 7.20%. The Vancity prime rate represents a variable rate of interest announced by Vancity from time to time as its prime lending rate. Rate subject to change without notice.

Canada Emergency Business Account (CEBA)

CEBA refinancing loan now available.

Key information.

Interest

Forgiveness for loans of $40,000

Forgiveness for loans of $60,000

An additional 70 days to repay

Save money, plan early.

Automate your savings.

No bad questions.

Tools to build your business.

Small loans that make a big difference.

Funds for women-owned businesses.

Foreign currency solutions.

Business credit cards with reward points.

Health coverage for your employees.

Point-of-sale and payment technology.