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The Canada Emergency Business Account (CEBA) is an initiative of the Government of Canada.  The official Government website is

CEBA Loan for Gas Stations

CEBA Loan for Gas Stations

Gas stations are an essential part of our daily lives. Gas stations are always in demand and remain stable throughout economic changes. However, due to the crisis, gas stations have faced financial instability. That’s when CEBA loans came into action.

This blog covers everything about CEBA loan for gas stations. We will discuss the purpose of CEBA loans for gas stations and the current status of CEBA loans for gas stations.

CEBA Loan for Gas Stations

The Canada Emergency Business Account (CEBA) was launched on April 9, 2020. Since then, it has been a financial lifeline for many businesses, including gas stations. The aim was to help gas stations struggling due to the COVID-19 pandemic. 

This program has significantly contributed to the economy, with an impressive $49 billion. Approximately 900,000 businesses, primarily small ones, benefitted from this initiative to cope with the pandemic fallout.

The CEBA loan was designed to help businesses like gas stations manage their non-deferrable costs. These costs continue to accumulate regardless of economic slowdown and include expenses like rent, utilities, insurance, taxes, and employment costs. 

Initially, the scheme offered a zero-interest loan of $40,000 to eligible gas stations. Later, this amount was increased up to $60,000, with a portion forgivable if specific conditions were met. For countless gas stations, CEBA served as a financial cushion, facilitating business operations in the post-COVID era.

Revised Deadlines for Partial Loan Forgiveness & Repayment

On September 14, 2023, the Prime Minister rolled out updated deadlines for repaying CEBA loans, including those held by gas stations. This extension provided an additional year for loan holders to repay while also offering increased flexibilities for those wishing to qualify for partial loan forgiveness, which could be up to 33%.

CEBA Partial Loan Forgiveness Deadline

Specifically, gas stations now have until January 18, 2024, to repay their CEBA loans. This deadline is an extension from the original date of December 31, 2023. Those gas stations looking to refinance their loans must apply to their financial institution by January 18, 2024. Successful refinancing applications secure an extension until March 28, 2024, to qualify for loan forgiveness.

The government has introduced incentives for timely repayment. Suppose gas stations repay their loan by January 18, 2024, or before the refinancing extension deadline of March 28, 2024 (providing a refinancing application was submitted before January 18, 2024). In that case, it will qualify for partial loan forgiveness. This equates to $10,000 discounted from a $40,000 loan and $20,000 from a $60,000 loan, lightening the load for gas stations.

However, gas stations that don’t repay by the loan forgiveness deadline will face repercussions. Starting January 19, 2024, any outstanding CEBA loan balance will be converted into a three-year term loan, forfeiting the zero-interest benefit. Instead, a 5% annual interest rate will be levied on the remaining balance, increasing the financial obligations for those gas stations.

CEBA Loan Repayment Final Deadline

The final cutoff for repaying all outstanding CEBA loans, along with applicable interest, is December 31, 2026. This deadline applies to all gas stations, with no exceptions. Previously, the deadline was December 31, 2025. All gas stations have an additional year to complete repayment without any penalties.

The term loans, including those held by gas stations, are subject to an annual interest rate of 5 percent. This interest rate applies to the remaining balance of the CEBA loans. The frequency of interest payments, however, may not be the same for all gas stations as it can vary depending on the financial institution.

What if Gas Stations miss the CEBA Loan Repayment Deadline?

If gas stations do not repay their CEBA loans by the ultimate deadline, December 31, 2026, they will face a loan default. The Canada Revenue Agency (CRA) would then initiate collections. How assertively the CRA will act during collections remains uncertain. 

Gas stations that have stayed up to date with monthly interest payments but have struggled to repay the principal might be able to negotiate a favourable repayment scheme. However, it would be advisable for these gas stations to secure an alternative lender before the final date, December 31, 2026. Doing so can save gas stations from loan default, potential credit score implications, and related collection issues.


In the face of uncertainty, the CEBA loan has proven to be a financial buoy for gas stations across Canada. From mitigating non-deferrable expenses to offering an opportunity for partial loan forgiveness, it has provided a versatile solution in challenging times. 

As we navigate through the aftermath of the pandemic, it’s encouraging to see measures such as the CEBA loan supporting the resilience and continuity of essential services like gas stations. 

So, if your business of gas stations is struggling due to the pandemic, explore the options provided by CEBA before it’s too late.

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