MERCHANT GROWTH

CEBA Refinance

Learn more today about your ability to refinance your CEBA loan and take advantage of your $20K in relief!

Convenient

Take 5 mins to fill out the application.

Flexible

Merchant Growth products fit the needs of your small business

Fast

Once approved get your funds in as fast as 24hrs

What is the Canada Emergency Business Account?

The CEBA program provides interest-free loans of up to $60,000 to small businesses and not-for-profits.

Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 33 percent (up to $20,000).

  • 0% interest until December 31, 2022.
  • 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 December 31, 2022.
  • Up to $20,000 loan forgiveness is available on eligible CEBA loans advanced for $60,000, provided $40,000 is paid back prior to December 31, 2022.
  • If the balance is not paid by December 31, 2022, the remaining balance will be charged 5% annual interest, paid monthly, effective January 1, 2023.
  • The full balance must be repaid by no later than December 31, 2025.  

What is the CEBA refinance program?

The Merchant Growth “CEBA Refi” program has been created to enable small business owners to take advantage of their CEBA loan forgiveness offered by the government. 

Much like a business loan, we forward cash to your business up-front, and a daily or weekly payment is made automatically to repay the balance over the following twelve months. With a fixed repayment on the Merchant Growth loan. the small business owner benefits from a lower interest cost (compared to the government interest paid over the 3yrs) and enables the owner to benefit from the forgiveness program.

CEBA FAQ

Eligibility

The Canadian Emergency Business Account (CEBA) 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.

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 receive your funds within 10-15 business days.

The CEBA loan has an interest free period spanning from the time of getting the loan till December 31, 2022. 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 2023 and the full outstanding principal balance will then need to be repaid no later than December 31, 2025. To that end, CEBA loans that are not paid off in full by December 31, 2022 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:

  1. It is not a government organization or body, or an entity wholly owned by a government organization or body;
  2. 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;
  3. It is not an entity owned by any Federal Member of Parliament or Senator;
  4. 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.

To qualify for the CEBA loan you must have a unique 9-digit Canada Revenue Agency business number. If you have multiple different businesses with a different 9 digit CRA number each qualifying business will be 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.

Loan Details

Any applicants that meet CEBA eligibility criteria will have the following repayment terms. Interest will be paid at 0% per annum interest until December 31, 2022, after which if not paid off by that day a 5% per annum interest starting on January 1, 2023 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 December 31, 2022, If loan remains outstanding after December 31, 2022, only interest payments required until full principal is due on December 31, 2025.

As for debt forgiveness, if the outstanding principal, other than the amount of potential debt forgiveness, is repaid by December 31, 2022, 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 December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Example 1:

Maximum Amount Borrowed: $40,000

Amount Repaid By December 31, 2022: $30,000

Available Forgiveness: $10,000

Example 2:

Maximum Amount Borrowed: $20,000

Amount Repaid By December 31, 2022: $15,000

Available Forgiveness: $5,000

Example 3:

Maximum Amount Borrowed: $40,000

Amount Repaid By December 31, 2022: $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 December 31, 2022 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 December 31, 2022. 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.

Example 4:

Maximum Amount Borrowed: $60,000

Amount Repaid By December 31, 2022: $40,000

Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)

Example 5:

Maximum Amount Borrowed: $50,000

Amount Repaid By December 31, 2022: $35,000

Available Forgiveness: $15,000 ($40,000 x 25% + $10,000 x 50%)

Example 6:

Maximum Amount Borrowed: $60,000

Amount Repaid By December 31, 2022: $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 December 31, 2022 will result in loan forgiveness of 50 percent (up to $10,000).

Example 7:

Maximum amount Borrowed: $20,000

Amount Repaid By December 31, 2022: $10,000

Available Forgiveness: $10,000

Example 8:

Maximum amount Borrowed: $20,000

Amount Repaid By December 31, 2022: $8,000

Available Forgiveness: $0

Minimum Requirements

Minimum eligibility requirements for Merchant Growth small business products

Location

Canada

Monthly Revenue

$10K

Time in Business

6 months

How does it work?

STEP 1

Complete Application

Take 5 minutes to provide a few pieces of information — online or on the phone, it’s your choice.

STEP 2

Review Options

Your dedicated financing advisor will reach out and work with you to determine the best solution.

STEP 3

Get Your Funds

Receive your funds into your business bank account in as fast as 24 hours.

Get started today

Complete our online application and we’ll contact you to present financing options tailored to your business needs.