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Have you benefited from a CEBA loan?

What is CEBA loan?

CEBA loan is a federal program that offered interest-free loans to small businesses impacted by the pandemic. It allows businesses to apply for loans of up to $60,000.

Have you benefited from a CEBA loan? Don’t miss the opportunity to get up to $20,000 in government forgiveness by repaying on time! (conditions may apply) 

We’ll guide you through the repayment process so you can benefit from the government exemption and avoid interest charges.

Take advantage of this unique opportunity to repay your loan on time and free up budget for your growth.

Qu'est-ce qu'un Prêt CUEC
Date limite pour remboursement du prêt CUEC

Repayment deadline

1. Initial repayment deadline (eligible):
January 18, 2024 was the loan repayment deadline for eligible holders.

2. Partial repayment with refinancing:
If you requested refinancing from your financial institution prior to January 18, 2024 and require a grace period, you have until March 28, 2024 to repay your loan, with the option of refinancing with other lenders.

3. Loans not repaid on time:
As of January 19, 2024, loans outstanding, including those subject to the refinancing extension period, will be converted into three-year loans with an interest rate of 5% per year, and the term loan repayment date will be December 31, 2026.

What forgiveness are available?

*Exemptions applicable to eligible loans see government guidelines

Loan of $40,000 and less
If your loan is $40,000 or less, you can receive a 25% debt reduction. This means that to benefit from this reduction, you must repay at least 75% of the remaining amount by January 18, 2024.

Loan between $40,000 to $60,000
If you took out a loan ranging from $40,000 to $60,000, you’re eligible for loan forgiveness of 25% on the initial $40,000 and 50% on the subsequent $20,000. For instance:

2 examples of scenario

1. **Sarah and Nick** need to pay off their $40,000 CEBA loan, but are unable to pay the full amount in time to benefit from $10,000 in partial loan forgiveness. On January 19, 2024, their loan converts to a three-year term loan with five per cent interest per year. They will make monthly interest payments of around $167 per month, and will only be required to pay their principal amount just before the term loan repayment deadline of December 31, 2026.

2. **Doug** applies for $40,000 in financing from the bank that provided his CEBA loan to pay off his $60,000 CEBA loan. He is unable to receive a response to his refinancing application by January 18, 2024. However, with the new refinancing extension, he has until March 28, 2024, to hear back from his bank and secure new financing to pay off his CEBA loan and benefit from $20,000 in partial loan forgiveness.

If you borrowedYou must repayTo be forgiven
$40,000$30,000$10,000
$30,000$22,500$7,500
$20,000$15,000$5,000
$10,000$7,500$2,500
If you borrowedYou must repayTo be forgiven
$60,000$40,000$20,000
$50,000$35,000$15,000

Can I refinance my CEBA loan with and AFS business loan?

Absolutely, you can use an AFS Business Loan to refinance your CEBA loan, and this is a smart strategy, especially if you do not have the funds to guarantee the portion of your loan eligible for a reduction. Of course, there will be interest charges associated with the new loan you obtain, but they are likely to be offset by the potential cancellation of the government loan, up to $20,000.

Additionally, you will avoid holding a balance under the CEBA program, which will start accumulating interest at a rate of 5% per year, payable monthly starting in January 2024.

How can Affiliated Financial Services assist you?

If you need financing to take advantage of the maximum loan reduction, AFS can assist you:

  • Unlock up to $60,000 right now.
  • Choose flexible repayment terms over a period of 4 to 24 months.
  • Repay your CEBA loan.
  • ​Invest in the growth of your business.

Does this sound interesting to you? Simply fill out our form to be quickly connected with a financing expert.

Services Financiers Affiliés peuvent vous aider avec le prêt CUEC

Fill out this form and get a loan to repay your CEBA loan