CEBA repayment: Everything you need to know

The Canada Emergency Business Account was a federal program that provided loans to eligible Canadian businesses and not-for-profit organizations during the COVID-19 pandemic. The program is closed to new applications, but businesses with outstanding balances still need to meet their repayment obligations.

For eligible CEBA loans in good standing that remained outstanding after January 18, 2024, the full remaining principal is due on December 31, 2026. If your loan was deemed ineligible or is already in default, different deadlines or payment demands may apply. Check your loan notices and confirm your situation with your financial institution or the CEBA Program.

No. The deadline to qualify for partial forgiveness was January 18, 2024, with an extension to March 28, 2024 for qualifying borrowers who applied for refinancing through their original financial institution by January 18. Repaying or refinancing in 2026 does not restore forgiveness. See the official refinancing and forgiveness FAQ for the historical conditions.

Yes. Eligible outstanding CEBA loans have accrued interest at 5% annually since January 19, 2024. Your financial institution determines the interest-payment frequency. Keep in mind that making interest-only payments does not repay the principal, so you still need a plan for the remaining balance. The official CEBA repayment FAQ explains these terms.

If your loan is still with your financial institution, contact it to confirm your payout amount, payment instructions and processing time. If your loan has been assigned to the CEBA Program, follow your assignment notice and use the official CEBA Portal to view your balance and loan details. Allow time for your payment to be processed.

You can repay your balance using available business cash or explore financing for some or all of the amount, depending on your eligibility and the lender’s requirements. If full repayment is not possible, contact the organization managing your loan to discuss your situation. The right next step depends on your cash flow and loan status.

Yes, refinancing may be a good option, depending on your eligibility and the lender’s requirements. You use the new financing to repay your CEBA balance, then make scheduled payments under the new agreement. Spreading repayment over a new term can help you keep cash available for the everyday needs of your business.

Your financial institution will initially request repayment of the outstanding debt. If it remains unpaid, your loan may be assigned to the CEBA Program for collection, with assistance from the Canada Revenue Agency (CRA). Unpaid balances may also be recovered from tax refunds and federal benefits. If repayment is a concern, be sure to plan now – contact your financial institution and consider refinancing options.

If your loan has been assigned to the CEBA Program for collection, the CRA may review your circumstances and work with you on a payment arrangement based on your ability to repay. An arrangement is not automatic and does not forgive the balance. If your loan remains with your financial institution, contact them first to discuss your situation. The official CEBA website explains the collection process and where to get help.