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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 Ontario

The Canada Emergency Business Account (CEBA) loan program has been a lifeline for businesses across Ontario among the challenging circumstances brought on by the COVID-19 pandemic. This federal program has provided crucial financial support to eligible businesses, helping them navigate economic uncertainties.

In this article, we will discuss the CEBA loan program in Ontario, its eligibility criteria, loan forgiveness, and its positive impact on businesses throughout the province.

Eligibility Criteria for CEBA Loan in Ontario

CEBA loan Ontario follows the same eligibility criteria as in other provinces. To qualify for the loan, businesses need to meet specific requirements, including:

  1. Having an active business chequing/operating account as of March 1, 2020 (originally required, but this condition was removed later).
  2. Demonstrating eligible non-deferrable expenses between $20,000 and $1.5 million in 2020.

CEBA Loan Terms and Forgiveness

Under the CEBA program in Ontario, eligible businesses can access interest-free loans of up to $60,000.  CEBA repayment terms and forgiveness provisions include:

  • Loan Forgiveness: If businesses repay their CEBA loans by the specified deadline, December 31, 2023, they may be eligible for loan forgiveness of up to $20,000.
  • Repayment and Conversion: If the loan is not fully repaid by the forgiveness deadline, it will convert into a 2-year term loan with an interest rate of 5% per annum.

Impact on Ontario Businesses

The CEBA Loan program has had a significant impact on businesses in Ontario. By providing financial support during economic uncertainty, the program has helped businesses in various sectors stay afloat, retain employees, and cover essential operating costs.  The infusion of funds has allowed many businesses to adapt, pivot, and find new growth opportunities, ultimately contributing to the province’s economic recovery.

Accessible and Widely Available

The CEBA Loan program was made accessible to businesses in Ontario through the participation of numerous financial institutions across the province.  Businesses had the flexibility to apply for the loan through their primary financial institution, ensuring a streamlined process and wider accessibility for Ontario businesses in need, and also, to use CEBA Loan efficiently for their benefits.

Government Support and Future Prospects

The Ontario government, in conjunction with the federal government, has demonstrated its commitment to supporting businesses through programs like CEBA. As the province continues its journey toward economic recovery, the government’s support for small businesses remains steadfast.  Alongside the CEBA Loan program, various initiatives, grants, and resources are available to further empower Ontario businesses, ensuring their resilience and growth.

Navigating CEBA Loan Repayment Challenges

Regardless of the status of your business, all CEBA Loan recipients are required to repay their loans per the repayment terms provided by their financial institution.  Refer to the specific repayment terms outlined by your financial institution to understand your repayment deadline and the forgiveness provisions associated with your loan.

Default and Consequences

If you are unable to repay your CEBA Loan by the deadline specified in your repayment terms, you will be considered in default. In such cases, your financial institution will contact you to discuss the next steps.  Depending on the circumstances, you may not be eligible for loan forgiveness if your loan is not in good standing.

Repayment Deadline and Interest

For borrowers who meet the CEBA eligibility criteria and are in good standing, failing to repay the loan by December 31, 2023, will result in the loss of loan forgiveness.  From January 1, 2024, to December 31, 2025, interest will apply to the outstanding balance of your CEBA Loan.

Change in Ownership

If there has been a change in ownership of your business, the impact on the repayment terms depends on the legal structure of your business. Sole proprietors and corporations may have different requirements and processes for loan repayment.  It is advised to contact your financial institution to discuss the specific details related to repayment and any other loan terms affected by the change in ownership.

Ontario Businesses Struggle to Repay CEBA Loans

According to the CFIB, the vast majority, around 89%, of small businesses in Ontario relied on CEBA Loans to stay afloat during the pandemic. However, with the repayment deadline approaching, only 10% of business owners have been able to repay what they owe. Many businesses, particularly those with four employees or fewer, as well as those in the arts, recreation, information, hospitality, and social services sectors, are expected to need help to meet the repayment deadline.

Challenges and Burden

Even business owners who intend to repay their CEBA Loans by the deadline anticipate facing significant hardships. Approximately half of these owners express concerns about the financial strain they will experience.  Moreover, 59% believe repaying the loan will hinder their ability to restore their businesses to pre-pandemic revenue levels, a feat that remains elusive for many due to ongoing economic challenges.

The Need for Relief and Support

The CFIB’s report reveals that close to three-quarters of small business owners in Ontario are requesting an extension to the CEBA repayment deadline. Among them, 30% favor a one-year deferral, while 42% hope for a two-year deferral.  Such an extension would provide much-needed relief and give businesses a fighting chance to survive the challenging economic climate.

The CFIB’s Recommendations

In response to the urgent situation, the CFIB urges the federal government to extend the repayment deadline for CEBA Loans to 2025 or, at the very least, 2024. They also advocate for increasing debt forgiveness to at least 50% partial loan forgiveness.  Additionally, the CFIB calls for the creation of an appeal process for the approximately 50,000 businesses that received loans but have since been deemed ineligible. The closure of thousands of businesses could have significant repercussions not only for individual owners but also for the broader economy. This comes at a challenging time, with economists predicting a potential mild recession in Canada in the latter half of the year.


The CEBA Loan program in Ontario has played a vital role in supporting businesses during the challenging times caused by the COVID-19 pandemic. By providing interest-free loans and opportunities for loan forgiveness, the program has helped businesses in Ontario stay afloat, adapt, and rebuild.

The collaborative efforts between the government and financial institutions have made CEBA Loans widely accessible, enabling businesses across the province to access the financial assistance they need to navigate these unprecedented times.  As the province moves forward, the CEBA Loan program continues to be a beacon of support, empowering Ontario businesses to thrive in a post-pandemic landscape

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