We have not been able to confirm that the forgivable portion of the CEBA loan is exempt from CPP. Therefore, the forgivable amount is simply added to business income on Line 8270 of the T2125 - Statement of Business Activities, as it is a direct support to businesses requiring assistance.
A sole proprietor will pay additional CPP on the higher net business income. This is an indirect result of the CEBA loan for business purposes, so there's no mechanism in place that says it is CPP-exempt because that's a personal matter.
