CEBA LOAN REPAYMENT DEADLINE
Businesses were previously informed that in order to receive partial loan forgiveness, the outstanding balance of the loan (other than the amount available to be forgiven) must be repaid on or prior to December 31, 2023 and that the final deadline for repayment of the principal amount outstanding under your CEBA loan (together with any accrued and unpaid interest) was December 31, 2025.
However, as recently announced by the Government of Canada, we are informing you of the following changes to your CEBA loan under the CEBA program:
- The deadline to repay the outstanding balance of your CEBA loan (other than the amount available to be forgiven) in order to qualify for partial loan forgiveness is extended to January 18, 2024;
- The start date for interest on your CEBA loan to commence is extended to January 19, 2024 and the outstanding balance of your CEBA loan will now be subject to an interest rate of 5% per annum beginning on January 19, 2024 and continuing until your CEBA loan is repaid in full;
- If you have an outstanding balance on your CEBA loan as of January 19, 2024, you will no longer qualify for partial loan forgiveness unless you have applied for refinancing through us on or before January 18, 2024, in which case you can still qualify for partial loan forgiveness if the outstanding principal of your CEBA loan, other than the amount available to be forgiven, is repaid on or before March 28, 2024 (provided that interest shall commence on January 19, 2024); and
- If you do not repay your CEBA loan in time to receive partial loan forgiveness as described above, the deadline for repayment of the principal amount outstanding under your CEBA loan (together with any accrued and unpaid interest) is extended from December 31, 2025 to December 31, 2026.
Please see the legal details at the end of this page for more information and specifics.
For questions regarding CEBA loan forgiveness, please visit the CEBA program website at ceba-cuec.ca for more details and examples.
Libro Credit Union
We refer to the CEBA Loan Agreement between Libro Credit Union (defined as the “Lender”) and the CEBA Borrower (defined as the “Borrower”) (as may have been amended or supplemented to the date of this notice, the “Loan Agreement”), entered into pursuant to the Canada Emergency Business Account program (defined as “CEBA”) and related CEBA loan documents including signed attestations (collectively defined as the “Loan Documents”), in which certain funds were advanced by the Lender to the Borrower, based on the terms and conditions contained within the Loan Documents.
The Government of Canada has authorized and instructed us to notify you as follows:
- you will be eligible for partial loan forgiveness as provided for under the terms of the CEBA program if (i) your loan(s) are in good standing under the CEBA program as of the date of this notice, and (ii) the outstanding balance of the loan(s) (other than the amount available to be forgiven) is repaid on or prior to January 18, 2024, or on or prior to March 28, 2024 if you have applied for refinancing through the Lender on or before January 18, 2024;
- if your loan(s) are in good standing under the CEBA program as of the date of this notice, the repayment deadline for the principal amount outstanding under your CEBA loan (together with any accrued and unpaid interest and any other amounts owing) has been extended from December 31, 2025 to December 31, 2026;
- if your loan(s) are in good standing under the CEBA program as of the date of this notice, no interest payments shall be required for the period from January 1, 2024 through January 18, 2024 and we hereby waive all interest payments that accrue during the period from January 1, 2024 through January 18, 2024, but expressly reserve all rights and remedies with respect to the accrual and payment of interest commencing on January 19, 2024; and
- if your loan(s) are not repaid in full on or prior to January 18, 2024, interest at a rate of 5% per annum shall accrue and be payable on your loan(s) commencing on January 19, 2024 and continuing until your loan(s) are repaid in full.
The foregoing waiver shall be effective only in this instance and for the specific purpose for which it is intended and shall not be deemed to be a waiver of compliance with any other provision of the Loan Documents. For greater certainty, we expressly reserve all of the rights and remedies under the Loan Documents and otherwise available under applicable law, to take such steps as we deem necessary or appropriate to recover the outstanding amounts, if same are not paid on or before the applicable dates provided for in the Loan Documents.