The Canada Emergency Business Account (CEBA) is an initiative of the Government of Canada to assist businesses impacted by the COVID-19 pandemic.  The official Government website is

CEBA Loan for Healthcare

CEBA Loan for Healthcare

Businesses, including healthcare providers, have been extremely affected by COVID-19. In response to this crisis, the Canadian government has implemented various support measures to help businesses during these challenging times. One of these measures is the Canada Emergency Business Account (CEBA) loan program.

With the launch of the CEBA loan for healthcare, healthcare businesses now have access to a much-needed financial lifeline. But what exactly is the CEBA loan for healthcare, and how can it help your business? In this blog, we will discuss everything you need to know about the CEBA loan for healthcare.

What is the CEBA Loan for Healthcare?

CEBA is a federal loan program designed to provide financial support to small businesses, including healthcare providers, during the pandemic. Launched on April 9, 2020, the program has since become a lifeline for numerous healthcare businesses that the COVID-19 pandemic has significantly impacted.

Here are key points about the CEBA loan for healthcare:

  • It has helped many healthcare businesses remain operational despite the economic slowdown.
  • The program has significantly contributed to the economy, with around $49 billion granted in loans.
  • Approximately 900,000 businesses, including those in healthcare, have benefitted from this program.
  • The CEBA loan covers non-deferrable costs, which continue to accumulate regardless of economic conditions. These include expenses like rent, utilities, insurance, taxes, and employment costs.
  • Initially offering a zero-interest loan of $40,000, the loan limit was later increased to $60,000. A part of this loan is forgivable if specific conditions are met.

For many healthcare businesses struggling during COVID-19, the CEBA loan has served as a much-needed financial cushion, enabling them to manage their operations in the post-COVID era.

How is CEBA Still Helpful for Healthcare?

The biggest reason behind the CEBA loan still being helpful for health care is the extended repayment deadlines and increased flexibility.

The Government of Canada has shown great flexibility in supporting healthcare businesses through CEBA loans. On September 14, 2023, the repayment deadlines for these loans were updated, which directly benefited the healthcare sector. Here are the key changes:

  • Revised Deadline: Healthcare providers now have until January 18, 2024, to qualify for partial CEBA loan forgiveness. The updated terms have increased the flexibility for healthcare businesses qualifying for partial loan forgiveness. Up to 33% of the loan can be forgiven, a significant relief for businesses navigating the post-pandemic economy.
  • Incentives for Early Repayment: Partial loan forgiveness is available for healthcare businesses that repay their loan by January 18, 2024, or before the refinancing extension deadline of March 28, 2024, provided a refinancing application was submitted before January 18, 2024. For a $40,000 loan, the forgiveness amount is $10,000, and for a $60,000 loan, it’s $20,000.
  • Consequences of Missing the Deadline: From January 19, 2024, any outstanding CEBA loan balance will be converted into a three-year term loan, losing the benefit of zero interest. A 5% annual interest rate will be levied on the remaining balance, increasing the financial burden.
  • Final Repayment Deadline: The final cutoff for repaying all outstanding CEBA loans, along with applicable interest, is set for December 31, 2026. This represents an additional year from the previous deadline, which was December 31, 2025. This deadline applies to all healthcare businesses, with no exceptions.
  • Interest Rate: The term loans, including those held by healthcare businesses, are subject to an annual interest rate of 5 percent. The frequency of interest payments can vary depending on the financial institution.

These measures demonstrate the Government of Canada’s commitment to supporting healthcare businesses during these challenging times.

CEBA Loan Repayment for Healthcare

Healthcare providers seeking to repay their CEBA loans have a range of flexible options at their disposal. Managing transactions digitally through online banking is a commonly preferred method, offering ease and speed. Mobile applications offer the ability to handle repayments anywhere, anytime, assisting healthcare providers in maintaining their fiscal responsibilities.

Another smart choice is to set up automatic monthly payments. This approach ensures deadlines are not missed, a critical factor in maximizing the benefits of loan forgiveness for healthcare providers. Alternatively, ATM transactions provide a manual repayment option, which some may find more suitable.

Each repayment strategy has unique benefits, allowing each healthcare provider to choose the best fit for their situation. However, it’s crucial to note that healthcare providers who do not repay their CEBA loans by the final due date of December 31, 2026, risk defaulting on the loan. This would prompt the Canada Revenue Agency (CRA) to begin collections, although how aggressive the CRA would be in this process is unclear.

Healthcare providers who consistently meet their interest payments but struggle with the principal may have an opportunity to negotiate a more favorable repayment plan. Nonetheless, such healthcare providers are advised to secure an alternative lender before the end date, December 31, 2026. This proactive step could safeguard healthcare providers from loan default, potential impact on their credit rating, and possible issues with collections.


In conclusion, the CEBA loan has proven to be a vital lifeline for healthcare businesses weathering the storm of the COVID-19 pandemic. Its adjusted repayment terms, partial forgiveness incentives, and extended deadlines have significantly eased the financial strain. But remember, the secret to maximizing these benefits lies in smart planning and timely repayments. Take advantage of the range of flexible repayment options to ensure your healthcare business is in the best financial position to manage its obligations.

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