Updated October 16, 2026
Short answer: the CEBA program did not require a personal guarantee. If your business is a corporation, the corporation owes the loan, not you. If you are a sole proprietor or partner, there is no legal difference between you and the business, so you are personally responsible for the debt.
With the full balance due on December 31, 2026, who owes the loan matters more than ever. Here is how it works.
If your business is incorporated
- The CEBA loan was made to the corporation. Standard bank CEBA loan agreements, such as TD’s, contain no personal guarantee.
- If the loan is not repaid, it is likely to be assigned to the CEBA Program, and the CRA can pursue the corporation for the balance.
- Owners and directors are generally not personally liable for the corporation’s CEBA debt. Exceptions can arise if you signed something extra, or if the attestations made when applying were false.
- A corporation with unpaid debts cannot simply be dissolved, and the debt stays with it.
If you are a sole proprietor or partner
- The business is you. The CEBA loan is your personal debt, even if it sits in a business account.
- If it goes to collection, the CRA can pursue you personally for the balance.
- Closing the business does not end the debt.
How to check your own loan
- Find your CEBA loan agreement in your online banking or ask your branch for a copy.
- Check who is named as the borrower, and whether you signed anything as a guarantor.
- Check whether your bank also holds a general guarantee you signed for other business credit. That would not change the CEBA terms, but it affects what you owe the bank overall.
Watch out when you refinance
Many lenders that refinance CEBA balances do ask the owner for a personal guarantee. That means refinancing can move a debt your corporation owes onto you personally. That may still be the right choice if it keeps the business running, but read the terms before you sign and compare the alternatives.
What happens if nobody pays
An unpaid loan is likely to be assigned to the CEBA Program for collection, with the CRA assisting. The CRA tries to arrange a lump-sum payment or a payment plan. Read what happens if your CEBA loan goes to CRA collections and what happens if your business closes.
Next step
If your business is still operating, refinancing replaces the December 31 lump sum with regular payments. Compare lenders that refinance CEBA loans, or use the repayment calculator to size the payment.
This article is general information, not legal, tax or financial advice. ceba.ca is an independent website and is not affiliated with the Government of Canada. Official program information is at ceba-cuec.ca. If your loan has been assigned to the CEBA Program, the CRA CEBA Contact Centre is at 1-800-361-2808.