Canada Emergency Business Account (CEBA) Loan Refinancing
Learn more today about your ability to refinance your Canada Emergency Business Account (CEBA) loan and take advantage of your $20K in forgiveness. Nearly 400,000 businesses will be applying to refinance their CEBA loan by January, don’t get stuck at the back of the line, apply today!
Filling out the application only takes 5 minutes
Merchant Growth products fit the needs of your small business
Once approved, get your funds in as little as 24 hours
Access additional savings through our exclusive promotion
Save an extra $1,000 on your CEBA refinancing*. In addition to savings of upwards of $20,000 by ensuring you repay your CEBA loan by the January 18th forgiveness deadline, we are offering our customers additional savings for a limited time. Apply now, take control of your finances and don’t miss out on this great opportunity.
*Certain conditions apply
What is the Canada Emergency Business Account?
The Canadian Emergency Business Account program, administered by Canada’s banks and credit unions, provided interest-free loans of up to $60,000 to eligible businesses and not-for-profits.
Repaying the balance of the loan to the Government of Canada on or before January 18, 2024 will result in loan forgiveness of up to 33 percent (up to $20,000).
- 0% interest until January 18, 2024
- Principal repayments can be voluntarily made at any time without fees or penalties
- Up to $10,000 loan forgiveness is available on eligible CEBA loans advanced for $40,000, provided $30,000 is paid back prior to January 18, 2024
- Up to $20,000 loan forgiveness is available on eligible CEBA loans advanced for $60,000, provided $40,000 is paid back prior to January 18, 2024
- If the balance is not paid by January 18, 2024 (or March 28, 2024 if a refinancing application is submitted prior to January 18, 2024 at the financial institution that provided their CEBA loan), the remaining balance will be charged 5% annual interest, paid monthly, effective January 19, 2024
- The full balance must be repaid by no later than December 31, 2026
Why Merchant Growth's CEBA Refinance Program?
If you borrowed $60,000 and cannot repay the minimum required to pay off the CEBA loan amount by January 18, 2024, You will be placed into a term repayment structure by the federal government as follows:
- Principal: $60,000
- Financing Cost: 5% totalling $9,000 in interest charges
- Term: 36 months
- Total cost: $69,000
By using Merchant Growth’s CEBA Refinance Program:
You can repay your CEBA loan prior to January 18, 2024.
- Principal: $40,000
- Forgiveness: $20,000
- Financing Cost: interest rate based on business profile
- Term: 6-24 months
- Total cost: as low as $44,000
Our CEBA Refinancing Program can save you up to $25,000
What is the CEBA Refinance Program?
Merchant Growth’s CEBA Refinance Program has been created to enable eligible businesses to take advantage of the CEBA loan forgiveness offered by the government.
We provide you with our CEBA Refinance loan directly to your bank account, you then repay your CEBA loan to the government, and a weekly payment is made automatically by you to repay the balance owing to Merchant Growth over the term.
Canada Emergency Business Account - FAQ
The CEBA program application period for $60,000 loans and the $20,000 expansion has ended as of June 30th, 2021. Any application that has been submitted prior to that date will be processed provided the correct required documentation was uploaded prior to that time frame. For updates on the status of your application for CEBA funds, contact the CEBA call center at 1-888-324-4201.
If your business was declined for the $20,000 expansion you will be able to update any information submitted on your original application for the $40,000 CEBA loan.
After applying through your financial institution and have followed instructions to upload all required documents for your application, and if all pre-funding eligible validation is successful, then you can expect to have the funds deposited into your business operating account via online banking within 10-15 business days.
The CEBA loan has an interest-free period spanning from the time of getting the loan until January 18, 2024. After that period a 5% annual interest rate will come into effect on the outstanding balance of the CEBA loan until the balance is paid off in full. These monthly payments of interest on the loan will begin January 19, 2024 and the full outstanding principal balance will then need to be repaid no later than December 31, 2026. To that end, CEBA loans that are not paid off in full by January 18, 2024 will no longer be eligible for the forgiveness program of $20,000 off the $60,000.
Per the requirements of the Program, as set out by the Government of Canada, the Borrower confirms that:
- It is not a government organization or body, or an entity wholly owned by a government organization or body;
- It is not a non-profit organization, registered charity, union, or a fraternal benefit society or order, or an entity owned by such an organization, unless the entity is actively carrying on a business in Canada (including a related business in the case of a registered charity) that earns revenue from the regular supply of property/goods or services;
- It is not an entity owned by any Federal Member of Parliament or Senator;
- It does not promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age, or mental or physical disability, contrary to applicable laws.
Small business owners with up to $20,000 in payroll in 2019 will have to demonstrate having Eligible Non-Deferrable Expenses between $40,000 and $1,500,000 in 2020. Expenses that were already incurred in January and/or February 2020 and cannot be avoided or deferred beyond 2020 are considered “Eligible Non-Deferrable Expenses.” Electronic or paper copies of Receipts / Invoices / Agreements are required as supporting documentation.
CEBA supports businesses by providing financing for their expenses that cannot be avoided or deferred as they take steps to safely navigate a period of shutdown, thereby helping to position businesses for successful relaunch when the economy reopens.
Eligible Non-Deferrable Expense Categories
- Wage costs and other employment expenses to independent third parties;
- Rent or lease payments for real estate or capital equipment used for business purposes;
- Payments incurred for insurance costs or property taxes.
- Payments incurred for business purposes for telephone and utilities (i.e. gas, oil, electricity, water and internet connectivity);
- Payments for regularly scheduled debt service;
- Payments incurred under agreements with independent contractors, as well as fees required to maintain licenses, authorizations or permissions necessary to conduct business;
- Payments incurred for materials consumed to produce products.
For more information about each category of non-deferrable expenses, consult this CEBA user guide.
Qualifying for a CEBA loan requires a unique 9-digit Canada Revenue Agency business number. If you have multiple different businesses, each with different CRA numbers, then each business is limited to one CEBA loan.
In order to be eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan, an applicant must be an active operating business that is a sole proprietorship, partnership or a Canadian-controlled private corporation (“CCPC”) that was in operation in Canada on March 1, 2020. Other types of business entities are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion loan.
Any applicants that meet CEBA eligibility criteria will have the following repayment terms. Interest will be paid at 0% per annum interest until January 18, 2024, after which if not paid off by that day a 5% per annum interest starting on January 19, 2024 will come into effect; interest payment frequency to be determined by your financial institution.
As it relates to repayments and maturity. There will be no principal repayment required before January 18, 2024, If loan remains outstanding after January 18, 2024, only interest payments required until full principal is due on December 31, 2026.
As for debt forgiveness, 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, provided that no default under the Loan has occurred.
All applicants that meet CEBA eligibility criteria will have the following terms of forgiveness according to the Government of Canada:
If you borrowed $40,000 or less:
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before January 18, 2024 will result in loan forgiveness of 25 percent ($10,000).
Maximum Amount Borrowed: $40,000
Amount Repaid By January 18, 2024: $30,000
Available Forgiveness: $10,000
Maximum Amount Borrowed: $40,000
Amount Repaid By January 18, 2024: $25,000
Available Forgiveness: $0
If you borrowed more than $40,000 and up to $60,000:
If you received a $40,000 loan and subsequently received the $20,000 expansion, the terms of your forgiveness have changed and are described here.
Repaying the outstanding balance of the loan (other than the amount available to be forgiven) on or before January 18, 2024 will result in a single tranche of loan forgiveness up to $20,000 based on a blended rate:
- 25 percent on the first $40,000; plus
- 50 percent on amounts above $40,000 and up to $60,000.
For clarity, the portion of forgiveness based on a rate of 25% and the portion of forgiveness based on a rate of 50% are combined into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by January 18, 2024. For example, if $60,000 is borrowed, no forgiveness is available unless $40,000 is repaid.
Note: some financial institutions may record your $40,000 loan and $20,000 expansion as two separate loans. For the purposes of loan forgiveness, borrowings and repayments on both loans will be aggregated.
Maximum Amount Borrowed: $60,000 (maximum loan balance)
Amount Repaid By January 18, 2024: $40,000
Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)
Maximum Amount Borrowed: $60,000 (maximum loan balance)
Amount Repaid By January 18, 2024: $35,000
Available Forgiveness: $0
If you fully repaid your original $40,000 loan, claimed forgiveness, and thereafter received the $20,000 expansion:
Repaying the outstanding balance of the $20,000 expansion (other than the amount available to be forgiven) on or before January 18, 2024 will result in loan forgiveness of 50 percent (up to $10,000).
Small business funding minimum requirements
Merchant Growth offers small business funding options with minimum eligibility requirements:
Time in Business
How does it work?
You can choose to give some details either through the online application or over the phone, and it will only take you 5 minutes.
Our team will reach out and work with you to determine the best solution.
Receive your funds in as fast as 24hrs after approval.
Get started today
Complete our online application and we’ll contact you to present financing options tailored to your business needs.