To qualify for loan forgiveness, all you have to do is repay the outstanding balance of the loan (excluding the forgivable portion) by January 18, 2024. By doing so, you'll be eligible to have 25 percent of the loan amount forgiven, which could be up to $10,000.

Let's take an example to better understand it: Suppose you borrowed the maximum amount of $40,000. If you repay $30,000 of that loan by January 18, 2024, you'll be entitled to forgiveness of up to $10,000. That means you won't have to repay that $10,000.

Under the CEBA program, the terms of loan forgiveness are slightly different. Here's what you need to know if you received a $40,000 loan and later obtained an additional $20,000 through the expansion:

To qualify for loan forgiveness, you must repay the outstanding balance of the loan (excluding the forgivable portion) by January 18, 2024. The forgiveness amount will be a single tranche of up to $20,000, determined by a blended rate.

• 25 percent forgiveness applies to the first $40,000 of the loan amount.
• 50 percent forgiveness applies to the remaining amount between $40,000 and $60,000.
  

It's important to note that the forgiveness based on the rates of 25% and 50% is combined into a single tranche. This forgiveness will only be granted if all other outstanding amounts are repaid by the January 18, 2024 deadline. Let's clarify with an example:

Suppose you borrowed $60,000. In this case, no forgiveness is available unless you repay $40,000 of the loan. Only then would you be eligible for forgiveness up to the maximum amount of $20,000.