Canada Emergency Business Account (CEBA) was launched on April 9, 2020. It provides interest-free bank loans, guaranteed by the government, of up to $40,000 (now $60,000) to small businesses and to not-for-profits that are operating businesses. If the balance of the loan is repaid on or before December 31, 2023, this will result in 25% (up to $10,000) of the $40,000 loan being forgiven, and 50% (up to $10,000) of the $20,000 loan expansion being forgiven. The new deadline of 2023 was announced by the Department of Finance on January 12, 2022, and this will apply to all eligible borrowers in good standing.

The extended deadline means that the CEBA loan will still appear as long term debt on financial statements until December 31, 2022, at which time it becomes short term debt/current liability, because it will be due in 1 year.