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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 Spas

CEBA Loan for Spas

CEBA loan for spas made things easier for small businesses and individuals in Canada. The outbreak of COVID-19 has affected the economy, especially small businesses that rely heavily on cash flow to keep their doors open. With many businesses like spas businesses being forced to close due to lockdowns and restrictions, it was difficult for them to survive. That’s when CEBA loan for spas was introduced to help these businesses.

So, what exactly is a CEBA loan for spas? And what is its current status? Let’s find out!

What is CEBA?

CEBA, the Canada Emergency Business Account, is a federal loan program specifically tailored to offer financial aid to small businesses such as spas retailers during the COVID-19 pandemic. Initiated on April 9, 2020, this program has become an essential support for numerous spas businesses that have been substantially affected by the COVID-19 crisis. The CEBA loan for spas effectively extends a lifeline, enabling these enterprises to navigate through this challenging period.

Key Points of CEBA Loan for Spas

The CEBA loan for spas has been a beacon of support for many businesses in the spas industry, helping them continue their operations amidst the economic downturn caused by COVID-19. This program has poured a staggering $49 billion into the economy through loans, fortifying the financial backbone of approximately 900,000 businesses, many of which are in the spas sector.

The CEBA loan for spas focuses on non-deferrable costs, those pesky expenses that just don’t quit, regardless of the business climate. Consider those relentless rent statements, utility bills, insistent insurance, taxes, and ever-present employment costs.

Initially, the CEBA program offered a zero-interest loan of $40,000, but seeing the dire need, the loan limit was later pushed up to $60,000. What’s even more appealing? A portion of this loan could be forgiven, a silver lining for spas businesses if they meet specific conditions. The CEBA loan for spas is truly a sparkle of hope in these trying times.

Extension of CEBA Loan for Spas

On the 14th of September, 2023, an announcement from the Prime Minister declared extended deadlines for CEBA loan repayments, including those taken by spas businesses. This extension gave loan holders an additional year for repayment, simultaneously increasing flexibilities for those seeking to qualify for partial loan forgiveness, potentially up to 33%.

The specifics of the CEBA Partial Loan Forgiveness Deadline are as follows: spas businesses now have until the 18th of January, 2024, to qualify for partial loan forgiveness. This is an extension from the original deadline of December 31, 2023. Any spas business seeking to refinance their loans must apply to their respective financial institution by the 18th of January, 2024. Those who are successful in their refinancing applications secure an extension until March 28, 2024, to qualify for loan forgiveness

For the final repayment of all outstanding CEBA loans, including those held by spas businesses, the cutoff date is now December 31, 2026. This extended deadline applies universally to all spas businesses, with no exceptions. It’s worth noting that the previous repayment deadline was December 31, 2025, meaning spas businesses now have an additional year to complete repayment without facing any penalties.

The term loans held by spas businesses are subject to an annual interest rate of 5 percent, applicable to the remaining loan balance. However, the frequency of these interest payments may vary across different spas businesses. This variance is due to the financial institutions’ specific policies and procedures regarding interest payments.

Despite the challenges posed by the global pandemic, the spas sector continues to persevere, thanks in part to the financial lifeline extended by the CEBA loans.

Consequences of Not Repaying CEBA Loan for Spas Businesses

If spas businesses 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. The intensity and assertiveness of the CRA during collections remain uncertain and can vary based on individual circumstances. Spas businesses that have managed to stay up to date with monthly interest payments but have struggled to repay the principal might be in a position to negotiate a more favorable repayment scheme with their lenders.

However, it would be advisable for these spas businesses to secure an alternative lender before the final date, December 31, 2026. Taking this proactive step can shield spas businesses from loan default, potential credit score implications, and related collection issues. Hence, while the CEBA loan has indeed been a lifeline during these trying times, proper planning and action are necessary to avoid potential financial pitfalls.


In conclusion, the CEBA loan for spas has been a crucial support system for struggling small businesses in the spas sector during the COVID-19 pandemic. With its extended deadlines and potential for partial loan forgiveness, it is now more important than ever for spas businesses to take advantage of this program and use it as a tool to navigate through these challenging times. However, careful planning and timely repayment are still very important for spas businesses.

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