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 in Sherbrook

CEBA Loan in Sherbrook

In the face of economic uncertainty, the Canadian government introduced the Canada Emergency Business Account (CEBA) to provide vital financial support to businesses affected by the COVID-19 pandemic. One city that has greatly benefited from this initiative is Sherbrooke.

The CEBA loan program has not only provided crucial financial assistance but has also played a pivotal role in shaping the local economy by fostering resilience and ensuring the survival of numerous businesses. In this article, we delve into the CEBA loan in Sherbrooke, discussing its grants, repayment process, eligibility criteria, application process, and broader impact on the local economy.

Amount of Funds

CEBA Loan in Sherbrooke offers loans up to $40,000 to $60,000 to businesses and nonprofit organizations depending on their level of income, revenue losses, annual payrolls, and other non-deferrable expenses. CEBA is an interest-free loan with easy repayment options. Businesses need to repay loans till a specific date. If businesses, for any reason, cannot pay back the loan by the deadline. The government is supposed to start charging interest.

Amount of Grants

The CEBA loan in Sherbrooke offered eligible businesses a non-repayable grant of up to $20,000. This grant was designed to cover various operational costs, including rent, utilities, and payroll expenses. The initial loan structure provided a $40,000 loan, with 25% (up to $10,000) being forgivable if the balance was repaid by a specified date. The government’s subsequent enhancements raised the forgivable portion to 50%, or one-third if the loan amount is $60,000 resulting in a maximum grant of $20,000 for qualifying businesses.

Eligibility Criteria

To access the benefits of the CEBA loan program, businesses in Sherbrooke had to meet certain eligibility criteria. These criteria included, but were not limited to:

  • Being an operating business as of March 1, 2020.
  • Having a federal tax registration.
  • Demonstrating eligible non-deferrable expenses, such as payroll, rent, utilities, and insurance, between $20,000 and $1.5 million in 2020.
  • Not having previously applied for or received the CEBA loan

Application Process

The application process for the CEBA loan in Sherbrooke was designed to be user-friendly, ensuring that businesses could access the financial support they needed swiftly. Entrepreneurs needed to engage with their primary financial institution to apply for the loan. Financial institutions collaborated with the government to streamline the application process and verify the necessary information. This approach aimed to expedite the disbursement of funds to deserving businesses while minimizing administrative hurdles.

The application approval process can take some time. Government is also liable to disapprove some applications if they don’t meet the eligibility criteria. In case of declination, you can file an appeal or can talk to your bank or credit union for further assistance.

Repayment Process

Repaying the CEBA loan in Sherbrooke is a relatively straightforward process. Businesses that are unable to meet the requirements for full forgiveness of the loan must begin repaying the balance over a designated period.

The repayment plan depends on your financial institution, such as the bank or credit union. Businesses can consult them for information on repayment schedules.

Having said that, no matter what the institution is, if businesses have paid the amount before the deadline, they are eligible for a $20,000 forgiveness amount.

Late Repayments

Every loan comes with a specific deadline to pay back the loan. If businesses fail to pay the loan on time, they can:

  1. Lose Forgiveness Grant: After missing the deadline, businesses or nonprofit organizations are no longer eligible for up to $20,000 in loan forgiveness
  2. Get to pay Interest: Though the loan itself is interest-free, however, in case of missed deadlines. Businesses are supposed to pay 5% interest per year.
  3. Lose good credit score: Late payments or missed payments can highly impact your overall credit score. Missing deadlines can cause you a bad credit score.

CEBA Loan in Sherbrooke: Economy Impact 

The CEBA loan program has left a tangible impact on Sherbrooke’s local economy, contributing to both short-term relief and long-term resilience. The grants provided much-needed liquidity to businesses grappling with reduced revenue streams and operational challenges caused by the pandemic. By covering essential expenses such as payroll and rent, the CEBA loan helped prevent layoffs and business closures, thereby safeguarding local jobs and preserving the city’s economic fabric.

Beyond immediate relief, the CEBA loan played a critical role in maintaining business continuity. As companies accessed these funds, they could adapt their operations to the changing circumstances, investing in technology, remote work capabilities, and innovative strategies to serve customers in the “new normal.” This adaptability allowed Sherbrooke’s businesses to pivot and thrive in an unpredictable environment.

Furthermore, the ripple effects of the CEBA loan program were felt throughout the local economy. As businesses in Sherbrooke were able to retain their workforce and continue operations, consumer confidence remained stable. This, in turn, supported local spending and consumption, preventing a sharp economic downturn. The vitality of small and medium-sized enterprises (SMEs) is a key driver of economic growth in cities like Sherbrooke, and the CEBA loan bolstered this foundational sector.


The CEBA loan program has undoubtedly been a lifeline for businesses in Sherbrooke, offering financial stability, preserving jobs, and fostering adaptability in the face of unprecedented challenges. As the city navigates its path to recovery, the impact of the CEBA loan will likely extend far beyond the pandemic period. The resilience demonstrated by businesses in Sherbrooke, buoyed by the support of the CEBA program, underscores the importance of timely and targeted government interventions in nurturing economic growth and prosperity at the local level.

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