Short answer: if your CEBA loan has been assigned to the CRA for collection, you can ask for a payment arrangement instead of paying the full balance at once. The CRA reviews your ability to pay case by case, and the goal is still full repayment.
When a payment plan applies
Payment plans with the CRA are for CEBA loans that are already in default and assigned for collection. Before that point, your loan is still with the bank or credit union that issued it, and any changes to how you repay are up to that institution. Unpaid balances after December 31, 2026 are likely to end up with the CRA. See what happens to your CEBA loan on January 1, 2027.
How the CRA approaches CEBA debts
The Department of Finance says the CRA reviews each case individually, “emphasizing fairness, empathy, and putting people first,” the same approach it took with other COVID-19 programs such as the wage subsidy. It aims for either a lump-sum payment or a payment arrangement that repays the loan in full.
As of November 2024, about 1,100 CEBA loans worth about $41 million were in arranged payment plans with the CRA, out of roughly 69,000 assigned loans. Most assigned loans were still waiting for collection action at that time.
How to set one up
- Call the CRA at 1-800-361-2808, the number the CRA publishes for CEBA debts.
- Be ready to show what you can afford. Expect questions about the business’s income, expenses, assets and other debts.
- Propose a realistic payment. Only commit to an amount you can keep paying.
- Ask whether interest continues while you are on the plan, and get the terms in writing.
Keep the plan in good standing
A broken arrangement puts you back into collections with fewer options. If your situation changes, call the CRA before you miss a payment.
Payment plan or refinancing?
If your business can qualify for financing, paying the CRA in full ends the collection file and lets you deal with a lender on agreed terms. If it cannot, a payment plan may be the most practical option. Compare both:
Sources
This article is general information, not financial or legal advice. ceba.ca is an independent website and is not affiliated with the Government of Canada or any financial institution.