Updated October 16, 2026
Salons, barbershops and spas were among the hardest-hit businesses during the pandemic, and many still carry a CEBA balance. If yours does, the full amount is due on December 31, 2026. This page explains how salon and spa owners can pay it off, and what lenders will want to see.
Where your CEBA loan stands in 2026
- The full balance is due December 31, 2026. There is no further extension.
- Interest has been charged at 5% a year since January 19, 2024. Forgiveness ended in 2024 and those deadlines are final.
- Unpaid loans are likely to be assigned to the CEBA Program for collection, with the Canada Revenue Agency (CRA) assisting. Closing the business does not cancel the debt.
What lenders look at in your industry
- Card sales. Most salon revenue runs through a payment terminal, which makes monthly sales easy for lenders to verify.
- Booth rental versus employees. Lenders count only revenue that flows through your business account. If stylists rent chairs, your revenue may look smaller than the shop’s total sales.
- Seasonality. December, spring and wedding season are busy; January and February are slow. Show 6 months of statements that include both.
- Lease and retail inventory. A long lease and steady product sales both help.
Refinancing options that tend to fit
A short term loan of 12 to 24 months is the most common fit: it replaces the lump sum with fixed payments. Because salons take most payments by card, a revenue-based advance repaid as a share of daily card sales is often easier to qualify for, but usually costs more, so compare the total cost. If you have strong credit and 2+ years of history, ask your bank for a term loan or line of credit first.
Typical lender minimums
Most online lenders that refinance CEBA balances look for at least 6 months in business and roughly $10,000 a month in revenue. Some also want a credit score of 550 to 600 or higher, and some lend only to incorporated businesses. Banks and credit unions usually want a longer track record and stronger credit, but can offer lower rates. Compare lenders that refinance CEBA loans to see which ones fit your numbers.
What to have ready
- Your current CEBA balance and the bank or credit union that holds it
- 3 to 6 months of business bank statements
- Your business number, incorporation documents (if incorporated) and time in business
- Payment processor statements if your bank deposits are batched
Next step
Applying in October or November leaves time for approval and funding before December 31. Compare CEBA refinancing options, use the repayment calculator to size the payment, or read what happens if your loan goes to CRA collections.
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 already been assigned to the CEBA Program, the CRA CEBA Contact Centre is at 1-800-361-2808.