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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 in Montreal

CEBA Loan in Montreal

In the vibrant city of Montreal, small businesses and not-for-profit organizations have been at the forefront of economic challenges brought on by the COVID-19 pandemic. To provide vital financial support, the Canada Emergency Business Account (CEBA) loan program was implemented nationwide, including in Montreal. 

In this article, we will delve into the details of the CEBA loan in Montreal, its impact on local businesses, and its crucial role in sustaining economic resilience during these uncertain times.

Eligibility Criteria

As in other regions of Canada, the CEBA loan program in Montreal follows the same eligibility criteria. 

To qualify for the interest-free loan of up to $60,000, businesses needed to meet specific requirements, such as demonstrating eligible non-deferrable expenses ranging from $20,000 to $1.5 million in 2020.

Eligibility Criteria and Exclusions

The Canada Emergency Business Account (CEBA) program provided vital financial support to countless businesses in Montreal. However, certain entities were excluded from participating in the program based on the requirements set by the Government of Canada. 

  • Exclusions included government organizations, non-profit organizations, registered charities, and entities owned by Federal Members of Parliament or Senators. 
  • Additionally, any entity promoting violence, inciting hatred, or engaging in discrimination based on various protected characteristics was ineligible. 

These measures were implemented to ensure a fair distribution of aid and uphold program integrity while prioritizing businesses that actively contribute to the Canadian economy.

Wide Participation and Accessibility

The CEBA Loan program was made accessible to businesses in Montreal through the participation of numerous financial institutions in the city. 

This widespread availability ensured that businesses had multiple options to apply for the loan, making the application process more convenient and efficient.

Impacting Montreal’s Business Landscape

The CEBA loan program has significantly impacted Montreal’s business community. The program offered a lifeline to small businesses, allowing them to cover essential operating costs, retain employees, and navigate challenging economic conditions. 

As one of the major cities in Canada, Montreal benefited from the financial assistance provided by the CEBA loan program, contributing to the city’s overall economic recovery.

CEBA Loan Repayments and Re-Borrowing

For businesses that successfully repaid their Canada Emergency Business Account (CEBA) loans, the question of re-borrowing arises as they navigate the challenges of the post-pandemic economic landscape. However, it’s essential to understand that CEBA Loan repayments are considered final, and any amounts repaid cannot be re-borrowed.

As businesses in Montreal and across Canada navigate economic uncertainties, building financial resilience becomes paramount. 

Establishing contingency plans, maintaining adequate cash reserves, and adopting sustainable financial practices can help businesses weather unexpected challenges and seize opportunities for growth.

Repayment and Extension Concerns

As the repayment deadline for CEBA loans approaches, small businesses in Montreal face challenges in meeting their loan obligations. The Canadian Federation of Independent Business (CFIB) has warned that failure to repay the loan by the December 31 deadline could force a substantial number of businesses to shut their doors permanently. 

Business owners are urging the government to consider an extension to provide much-needed relief, allowing businesses to recover and sustain their operations in the post-pandemic landscape.

Impact on Tourism

According to the Tourism Industry Association of Canada, nearly 45% of tourism operators in Montreal are at risk of shutting down within the next three years if the government fails to intervene to adjust their loan conditions.

Tourism operators, ranging from campgrounds and hotels to amusement parks and outdoor adventure facilities, are under tremendous pressure to repay the loans they took out during the pandemic.

Proposals for Government Support

The Tourism Industry Association of Canada is advocating for the following key changes to support the survival and recovery of businesses in Montreal’s tourism sector:

  • Extend Repayment Deadline

The association is urging the government to extend the zero-interest repayment deadline for CEBA Loans to December 31, 2025, providing businesses with much-needed breathing room to recover and stabilize their operations.

  • Increase Forgivable Portion

To further ease the financial strain on businesses, the tourism association proposes increasing the forgivable portion of fully repaid loans from up to 33% to 50%. This measure would offer businesses a more substantial level of debt forgiveness.

  • Extend Qualifying Deadline for Forgiveness

Extending the qualifying deadline for debt forgiveness to the end of 2024 instead of this year would give businesses more time to meet the necessary criteria for loan forgiveness.

Impact on Montreal Restaurants

The impact of the CEBA Loan repayment challenge varies across different restaurants in Montreal. While some establishments have performed relatively well during the pandemic, others on popular streets like Stephen Avenue have struggled to regain pre-pandemic levels of business.

Despite the initial aid from CEBA Loans, many restaurants have accumulated significant debt over the past 16 months. The uncertainty of economic recovery, coupled with increased excise duties on alcohol, has further complicated their financial situation.

Restaurants Canada‘s plea for an extension to repay CEBA loans reflects the reality faced by the sector as most restaurants are still grappling with the burden of pandemic-related debt.  

Economic Resilience and Government Support

Despite the difficulties faced by Montreal’s small businesses, the CEBA loan program has played a pivotal role in supporting their resilience. The government’s commitment to providing financial support during the pandemic has been evident through various initiatives, including the CEBA program. 

The program’s accessibility and support have empowered businesses in Montreal to adapt, pivot, and find new opportunities for growth in these challenging times.


The CEBA loan program has been a crucial lifeline for businesses in Montreal, providing essential financial support during the COVID-19 pandemic. However, as the repayment deadline looms, businesses are urging the government to consider an extension to allow them more time to repay their loans and continue their journey toward financial stability and growth. 

The CEBA loan program has proven to be an invaluable resource for Montreal’s business community, and further support and flexibility are vital for businesses to navigate through these unprecedented times successfully.

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