Applicants with a $40,000 CEBA loan may apply for the $20,000 expansion.
Yes, you may apply for the $20,000 expansion at the financial institution that provided you with your original CEBA loan.
The following terms apply to all CEBA loans (original loan and expansion loan):
Interest
Repayments and maturity
Loan repayment
The Canada Revenue Agency (CRA) has recently taken a position on this issue and has indicated that the amount eligible for a capital exemption is taxable in the year in which the loan is received. If the balance of a CEBA loan is not repaid by December 31, 2022, an offsetting deduction is available for the tax year in which the amount is repaid. To ensure you comply with the CRA's tax treatment for your company's income tax return, we recommend contacting your chartered professional accountant or tax advisor.
Applicants may only apply for the full $20,000.
No. Since December 4, 2020, it is no longer possible to apply for the $40,000 loan.
You must submit a new application to UNI at uni.ca.
No. You need to apply at the financial institution that gave you the original $40,000 CEBA loan.
Yes, you will need to submit a new application aat uni.ca.
However, you will not have to re-submit your original application or upload the expense-related documents if you do.
If you borrowed $40,000
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% (up to $10,000).
Example 1
Maximum amount borrowed: $40,000
Amount repaid by December 31, 2022: $30,000
Amount forgiven: $10,000
Example 2
Maximum amount borrowed: $40,000
Amount repaid by December 31, 2022: $25,000
Amount forgiven: $0
If you borrowed $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:
Example 3
Maximum amount borrowed: $60,000
Amount repaid by December 31, 2022: $40,000
Amount forgiven: $20,000 ($40,000 x 25% + $20,000 x 50%)
Example 4
Maximum amount borrowed: $60,000
Amount repaid by December 31, 2022: $35,000
Amount forgiven: $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% (up to $10,000).
Example 5
Maximum amount borrowed: $20,000
Amount repaid by December 31, 2022: $10,000
Amount forgiven: $10,000
Example 6
Maximum amount borrowed: $20,000
Amount repaid by December 31, 2022: $8,000
Amount forgiven: $0
Applicants who received a $40,000 loan must apply separately for the $20,000 CEBA expansion.
In instances where additional information is needed from you for the additional $20,000, or if post-funding validations identified a discrepancy between your original loan application and CRA records, your expansion application may be declined.
The deadline to apply for the $20,000 expansion at your financial institution is June 30, 2021.
Once you have applied at UNI and if pre-funding eligibility validation is successful, you should expect to receive funding within 10-15 business days.