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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 Repayment

Are you ready to take on the challenge of repaying your CEBA Loan? Since the Canada Emergency Business Account (CEBA) loan is vital to the continued operation of many businesses, you must be ready to face the next challenges of repaying.  As it explains the specifics of repaying a CEBA Loan and offers valuable insights and suggestions, this article will assist you in overcoming this CEBA Loan repayment challenge.

What is the CEBA Loan?

A CEBA Loan, or CEBA, designed by the Canadian government, aims to assist small businesses in covering non-deferrable operating costs during a period of significant income decline brought on by the COVID-19 epidemic. This interest-free loan offers up to $60,000, of which 33% ($20,000) is forgiven if repaid by December 31, 2022. This loan is a lifeline for companies struggling to recover from the economic effects of the pandemic. Remember that if you are not affected by the COVID-19 outbreak, you can obtain up to $40,000 in interest-free loans, of which 25% ($10,000) is forgiven.

Requirements to Apply for the CEBA Loan

  • Businesses must meet certain conditions to be eligible for a CEBA Loan. This CEBA eligibility criteria includes being a small business company, a non-profit, a single proprietorship, or a family-owned corporation that provides dividends to employees or rent or lease payments, etc. Also, businesses that rely on contractors are qualified.
  • A business checking account with a participating FI must have been opened on March 1, 2020. If your company began operations on or after March 1, 2020, you can also utilize a personal bank account and switch to a business checking account with a Canadian financial institution later.
  • Businesses should have used something other than the original CEBA lending plan. Canadian businesses can’t get help from another FI for the CEBA. They must also show that they want to keep the business or start it up again. Small business owners must also fill out surveys after getting money from the Canadian government.

CEBA Loan Repayment

To repay a CEBA Loan is to refund money borrowed through the CEBA program in Canada. During the difficult times of the COVID-19 pandemic, the government developed this effort to provide financial help to small businesses and non-profit groups.  After receiving the loan amount, businesses are in charge of fulfilling their financial commitments by the terms and regulations imposed by the lending institution. Businesses are in charge of overseeing the timely repayment of their CEBA funds. Regular and on-time payments on repayment deadline are essential for keeping a good connection with your lender and avoiding any penalties. To meet their repayment obligations, businesses need to understand the terms of return, make a repayment plan, and use their money correctly.

Terms and Conditions of CEBA Loan Repayment

 The repayment terms for the CEBA Loan are flexible. By paying off the remaining loan sum by December 31, 2022, 33% of it will be waived. Any remaining balance after this date is changed into a 5% interest, three-year term loan. By December 31, 2025, the loan must be paid off in full. Understanding these CEBA Loan repayment terms is essential if you want to plan your repayments well and get the most out of this financial help. If you can’t make your payments on time, please call your financial institution to discuss other ways to repay your loan.

Options and Methods of CEBA Loan Repayment

Following are the CEBA Loan Repayment options and methods:

Online Payment Systems

  • Make use of the financial institution’s online banking services.
  • For convenience, set up regular automatic payments.
  • Utilize the ease and accessibility of online payment options.

Direct Deposit

  • Give the lender permission to take out the loan repayment amount immediately.
  • Ensure automatic and seamless payments.
  • Maintain control by specifying the preferred date for the direct debit.

Manual Payments

  • Make payments through authorized payment places or in-person visits.
  • Pay attention to the banking institution’s directions.
  • Keep your options open when selecting a payment method.

Payment through Cheque

  • Make checks payable to the lending institution or financial institution.
  • Include all relevant information, including the loan account number.
  • Pick a more conventional method of repayment.

Note: It is essential to ask the financial institution giving you the CEBA Loan about how you can repay it and if they have any special requirements.

8 Steps to Apply for CEBA Loan Repayment

Log in to CIBC Online Banking for Business with your independent Business Banking Convenience Card number and password to make payments on your CEBA Loan. After that, perform the following steps:

  1. Use the number and password associated with your Business Banking Convenience Card to log in to CIBC Online Banking for Business.
  2. The Customer Services tab can be found after logging in.
  3. Locate and choose the option for CEBA Loan Repayment under Account Services.
  4. Select the individual CEBA Loan you want to repay from the list of accessible accounts.
  5. Choose the account (From the Account) from which you want the payback amount to be deducted.
  6. The amount you want to pay back on the CEBA Loan should be entered.
  7. To start the payment procedure, click the Submit button.
  8. Review the payment information that has been provided in detail for a moment. Select Yes to continue if everything is correct and you are pleased.

Please be aware that the processing time for your CEBA Loan repayment could be between 24 and 72 hours. Ensure you have enough money in the chosen account to cover the payment until it is processed. Consider printing the confirmation page that displays after the payment is made for your records. Note: It may take up to six weeks for the Online Banking CEBA Loan balance to update. Also, you can make payments by consulting a representative at any CIBC Banking CentreOpens in a new window.

Tips for Repaying CEBA Loan

1. Repaying CEBA Loans Effectively


Paying your CEBA Loan in larger monthly lump payments is better. Doing this will pay off your balance more quickly and save money on interest. Evaluate your financial situation and set aside money to make significant repayments when you can.

2. Payment Scheduling for Efficient Processing


If you want your payments to go through without a hitch, schedule them between the 1st and the 15th of the month. Paying your CEBA Loan during this window will give the bank sufficient time to process and post your price. Avoiding the potential for late fees and other issues associated with making payments towards the end of the month is facilitated by this measure.

3. Meeting the Loan Forgiveness Deadline


Your final payment must be completed by December 15, 2023, to have a percentage of your CEBA Loan forgiven. You must meet this deadline to be eligible for loan forgiveness.  Make sure to arrange your repayment approach accordingly, noting the amount still owed and the number of installments due. Following the deadline improves your chances of fulfilling the full or partial loan forgiveness requirements and could decrease your overall financial burdens.

CEBA Loan Forgiveness

CEBA Loan forgiveness refers to the partial or total cancellation of the outstanding balance of a CEBA Loan. With the help of this program, qualified businesses can have a portion of their CEBA Loan canceled, lowering their payback obligations. The financial institution and the federal government set the terms and conditions. They determine who qualifies and the maximum amount that can be forgiven.

How Does it Work?

Depending on how much you got and how much is still owed as of December 31, 2023, your CEBA Loan’s eligibility for forgiveness will change. The highest loan forgiveness you may receive if your loan total is $40,000 or less is 25% of the loan. In other words, by December 31, 2023, you must pay off 75% of the loan sum to be eligible for loan forgiveness. The most you can claim as forgiveness if you borrowed between $40,000 and $60,000 and over is. 

  • 25% of the first $40,000 
  • 50% of the amount over $40,000 will be charged

As a result, by December 31, 2023, you must pay back 75% of the original loan and 50% of the new loan to be eligible for loan forgiveness. If you borrowed up to the $60,000 cap ($40,000 x 25% + $20,000 x 50%), the most that can be forgiven is $20,000 in either situation.

5 Steps to Manage CEBA Loan Repayment

Following are the five steps for managing the CEBA Loan repayment:

1. Make a Repayment Schedule

  • Start by carefully examining your financial responsibilities and cash flow.
  • In your budget, allot funds, especially for paying back the CEBA Loan.
  • To set realistic goals, consider variables like repayment time and interest rates.

2. Implement Financial Management Strategies

  • Keep a tight eye on your spending to spot where you may save costs.
  • Cut back on wasteful spending and prioritize critical purchases.
  • Investigate ways to boost your earnings.

3. Make On-Time Repayment a Priority

  • Put paying off loans at the top of your list of priorities.
  • To guarantee prompt repayment, set up reminders or automatic payments.
  • Make timely payments, as they may incur fines and harm your financial situation.

4. Ask for Professional Advice

  • If you run into problems with loan repayment, feel free to ask for help from financial professionals.
  • Consult a financial expert or accountant who can advise on controlling cash flow and, if necessary, renegotiating loans.
  • They can also look into additional repayment options that might be accessible to your company.

5. Frequently Review and Adjust Repayment Strategy

  • Always check out the changes in your company’s needs and periodically review and adjust your repayment strategy and financial status.
  • Optimize your repayment plan by making the necessary adjustments.
  • To successfully repay your loan, take the initiative and adjust as necessary.

Compensation Program and Resources

If businesses have financial difficulties, the Canadian government offers several support programs to help with loan repayment. These initiatives provide brief comfort and direction in difficult situations, enabling businesses to deal with financial difficulties effectively. Businesses should look into these initiatives and utilize the assistance on offer. For businesses managing their loan repayment, financial counseling services and resources are essential tools. These businesses offer knowledgeable advice on budgeting, loan management, and loan repayment. 


For businesses that relied on this financial support during the COVID-19 pandemic, repaying a CEBA Loan is crucial. Businesses may plan and manage their loan repayment effectively by knowing the terms and conditions. Regular and on-time payments are essential for keeping good relations with lenders and avoiding fines.  Businesses must carefully consider all available payback alternatives, including direct deposit, manual payments, cheques, online payment systems, and direct deposit, and select the one that best meets their needs.

Frequently Asked Questions

What is CEBA Loan Repayment


Paying back money borrowed through the Canadian CEBA program is repaying a CEBA Loan. The government established this initiative to give small enterprises and nonprofit organizations financial support during the challenging times of the COVID-19 outbreak. Businesses are responsible for completing their financial obligations by the terms and restrictions imposed by the lending institution after obtaining the loan amount.

When do I have to start paying back the CEBA Loan?


Without paying interest, you have until December 31, 2023, to repay the loan. If you have a debt of $40,000, a quarter of the loan, or $10,000, maybe completely forgiven1 if the remaining $30,000 is paid off on or before December 31, 2023.  If you have a loan for $60,000, a third of the loan, or $20,000, maybe completely forgiven1 if the remaining $40,000 is paid off on or before December 31, 2023. Any remaining principal is automatically converted into a 5% interest rate, 2-year term loan after this date.

What is CEBA Loan Forgiveness?


The term “CEBA Loan Forgiveness” refers to the partial or total cancellation of the outstanding balance of a CEBA Loan. With the help of this program, qualified businesses can have a portion of their CEBA Loan canceled, lowering their payback obligations.  The terms and conditions designed by the government and the financial institution delivering the loan set the eligibility requirements and the maximum amount that may be forgiven.

How can I figure out the loan forgiveness offer from CEBA?


You may determine the amount of your loan forgiveness through a few straightforward calculations. For instance, any less than $40,000 will result in a 25% loan forgiveness offer. However, amounts between $40,000 and $60,000 are subject to a 25% $40,000 + 50% amount forgiveness.


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