CEBA Loan Repayments

Important information and FAQs about CEBA loans

The COVID-19 pandemic had many impacts across our society, with businesses facing a particular set of challenges. If your business took on a CEBA loan, you need to understand your options for repayment. Those are highlighted here.

What is CEBA?

Initiated at the outset of the COVID-19 pandemic, the Canada Emergency Business Account (CEBA) program offered interest-free loans of up to $60,000 to small businesses and not-for-profit organizations. Backed by the Government of Canada, CEBA loans were made available through financial institutions across the country. More information about the CEBA program can be found here.

CEBA repayment options

In September of 2023, the Government of Canada announced revisions to the repayment schedules for eligible CEBA loan holders, including options for extensions and loan forgiveness.

Depending on the specific needs of your business and CEBA loan, the four key options are:

• The deadline to repay the outstanding balance of your CEBA loan (other than the amount available to be forgiven) in order to qualify for partial loan forgiveness is extended to January 18, 2024;
• The start date for interest on your CEBA loan to commence is extended to January 19, 2024 and the outstanding balance of your CEBA loan will now be subject to an interest rate of 5% per annum beginning on January 19, 2024 and continuing until your CEBA loan is repaid in full;
• If you have an outstanding balance on your CEBA loan as of January 19, 2024, you will no longer qualify for partial loan forgiveness unless you have applied for refinancing through us on or before January 18, 2024, in which case you can still qualify for partial loan forgiveness if the outstanding principal of your CEBA loan, other than the amount available to be forgiven, is repaid on or before March 28, 2024 (provided that interest shall commence on January 19, 2024); and
• If you do not repay your CEBA loan in time to receive partial loan forgiveness as described above, the deadline for repayment of the principal amount outstanding under your CEBA loan (together with any accrued and unpaid interest) is extended from December 31, 2025 to December 31, 2026.