CEBA Loan Repayment in 2026: How to Pay Off Your Loan Before December 31

Updated October 15, 2026

If your business still owes a CEBA loan, the full balance is due on December 31, 2026. This guide explains where your loan stands now, how to repay it, what happens if you can’t, and how refinancing can spread the cost.

CEBA repayment at a glance

Due date: December 31, 2026, for the full principal
Interest: 5% per year on the outstanding balance since January 19, 2024
Forgiveness: ended in 2024; the deadlines are final
If unpaid: the loan is likely to be assigned to the CEBA Program for collection, with the CRA assisting

How CEBA repayment works now

CEBA loans were interest-free until January 18, 2024. Eligible loans still outstanding after that date became non-amortizing term loans. That means you pay interest at 5% per year on the balance, but the principal does not reduce unless you pay it down. The full principal is due on December 31, 2026.

Where you pay depends on who holds your loan:

Still with your bank or credit union: repay through that financial institution. It can confirm your balance, interest and payment options.
Assigned to the CEBA Program: pay the CEBA Program directly by bill pay, cheque or wire transfer. Your bank can no longer accept payments on an assigned loan.

How to repay your CEBA loan, step by step

Confirm your balance. Check your latest statement or call your financial institution for the exact payoff amount, including any interest owing.
Decide how you will pay. Use cash on hand, a loan from your bank or credit union, or a refinancing loan from another lender. Our CEBA repayment calculator compares the options.
Leave time for approval. If you are borrowing to repay, apply weeks before December 31. Lenders need time to review your application and fund the loan.
Make the payment. Pay the full balance to your financial institution, or to the CEBA Program if your loan has been assigned.
Get written confirmation. Ask for a statement or letter showing a zero balance and keep it with your records.

What happens if you can’t repay by December 31, 2026

Your financial institution will contact you to request a lump-sum repayment.
If the loan still isn’t repaid, your financial institution will likely be required to assign it to the government’s CEBA Program for collection.
The Canada Revenue Agency (CRA) assists with collecting assigned loans. It may review your situation case by case and set up a payment arrangement based on your ability to pay. Interest keeps accruing during an arrangement, so a balance can remain after the scheduled payments end.

Closing your business does not cancel the loan. The official CEBA FAQ states you must repay your CEBA loan even if you close your business. Read more in CEBA Loan Due December 31, 2026: Refinance or Go to CRA Collections?

Refinancing your CEBA loan

Refinancing means taking out a new business loan, using it to pay your CEBA balance in full, and repaying the new lender in instalments. It suits businesses that are still operating and can carry a monthly payment but cannot pay the whole balance on December 31.

Lenders typically ask for:

How long you have been in business, and your monthly revenue
Recent business bank statements
Your current CEBA balance and the institution that holds it
Business and personal credit history

Expect most lenders to charge more than CEBA’s 5%. Compare the total cost of borrowing, the term, fees and any penalty for paying early, not only the monthly payment. Compare lenders that refinance CEBA loans.

Frequently asked questions

How much interest am I paying on my CEBA loan?

5% per year on the outstanding balance, charged since January 19, 2024. On a $60,000 balance that is about $250 a month.

Can I repay my CEBA loan early?

Yes. Paying early reduces the interest you pay. Confirm the exact payoff amount with your financial institution first.

Can I still get CEBA loan forgiveness?

No. Forgiveness of up to $20,000 required repayment by January 18, 2024, or refinancing in place by then and repayment by March 28, 2024. The CEBA Program states these deadlines are final and no one can grant exceptions.

Who do I contact about my CEBA loan?

If your loan is with your bank or credit union, contact it directly. If your loan has been assigned to the CEBA Program, call the CRA CEBA Contact Centre at 1-800-361-2808 or visit ceba-cuec.ca.

What if I close my business?

You still have to repay the loan. For situations such as bankruptcy, speak to an accountant or a Licensed Insolvency Trustee.

Next step

With the deadline approaching, start now. Compare lenders that refinance CEBA loans, or use the repayment calculator to see what each option costs.

ceba.ca is an independent website and is not affiliated with the Government of Canada. Official program information is at ceba-cuec.ca.