CEBA Loan FAQs (Updated for 2026)

The Canada Emergency Business Account (CEBA) was a Government of Canada program that provided interest-free loans of up to $60,000 to small businesses and not-for-profits during the COVID-19 pandemic. Loans not repaid by January 18, 2024 became term loans that charge 5% interest, with the full balance due December 31, 2026.

Businesses applied through their primary bank or credit union. The program is closed to new applications.

The CEBA loan initially allowed for loans of up to $40,000, later increased to $60,000.

No. CEBA applications closed on June 30, 2021, and the program is not accepting new applicants.

The CEBA loan is meant to cover non-deferrable expenses like rent, payroll, utilities, insurance, property tax, and regularly scheduled debt service.

No. CEBA was a one-time loan. Once you repay it, you cannot borrow the repaid amount again.

Most approved loans were funded within a few weeks of applying. The program is now closed to new applications.

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

For questions about ceba.ca itself, use our contact form.

To be eligible for the Canadian Emergency Business Account (CEBA), applicants must adhere to one of two pathways:

• Payroll Stream: This is applicable for applicants who had employment income in the calendar year of 2019 between CAD $20,000 and CAD $1,500,000.
• Non-Deferrable Expense Stream: This pathway is for applicants who had CAD $20,000 or less in total employment income paid in the calendar year of 2019.

In addition to following one of these streams, all applicants must satisfy the following eligibility requirements:

• Possession of an active Canada Revenue Agency (CRA) Business Number (BN) registered on or before March 1, 2020.
• Maintenance of an active business checking/operating account with their lender at the time of application. Note: If the applicant does not currently have a business checking/operating account, they must establish one with their primary financial institution prior to submitting a CEBA application.
• The applicant should not have availed themselves of the CEBA program previously and should not seek support from the program via any other financial institution.
• The applicant must intend to continue operating their business or resume operations.

For applicants aligning with the Non-Deferrable Expenses Stream, additional criteria include:

• Incurring eligible non-deferrable expenses between CAD $40,000 and CAD $1,500,000. Such eligible non-deferrable expenses may encompass costs associated with rent, property taxes, utilities, and insurance. These expenses will be subject to verification and audit by the Government of Canada.
• The applicant must have filed an income tax return with the CRA for a tax year ending in 2019 or, if the 2019 tax return has not been submitted, 2018.

Eligibility criteria may vary but generally, businesses must be based in Canada, have a federal tax registration, had a payroll within a certain range in the previous year, and have a business banking account.

The eligibility to receive the additional $20,000 expansion under the Canadian Emergency Business Account (CEBA) is typically based on whether the applicant had previously received the initial $40,000 loan. Importantly, it is also governed by the application period deadline. Therefore, for businesses to have been eligible for this expansion, they would have needed to have completed and submitted their applications for this additional funding before June 30, 2021.

For businesses to qualify for the Canadian Emergency Business Account (CEBA) loan they must have an active Canada Revenue Agency (CRA) Business Number (BN) registered on or before March 1, 2020.

The Canadian Emergency Business Account (CEBA) is generally available to a wide range of business types that meet the eligibility criteria. These may include, but are not limited to:

• Corporations registered under the federal or a provincial act.
• Sole proprietors.
• Partnerships.
• Not-for-profit organizations.
• Charities.
• Co-operatives.
• Indigenous groups running a business.

Yes, the CEBA loan can be used in conjunction with other COVID-19 relief measures, but the funds cannot be used for the same expenses. Businesses that have received support under the Regional Relief and Recovery Fund (RRRF) are not eligible for a $60,000 CEBA loan or $20,000 CEBA expansion.

Typically, you can only apply for one CEBA loan for each business number (BN) you have.

Yes, eligible charities and non-profit organizations could apply for the CEBA loan.

The program is closed and eligibility decisions are final. If you need financing today, compare lenders that work with small businesses.

The loan itself is not taxable income. Any portion that was forgiven is taxable income in the year the loan was received.

CEBA loans were interest-free until January 18, 2024. Since January 19, 2024, outstanding balances charge 5% interest per year until the loan is repaid.

If your loan is still with your bank or credit union, repay it through that financial institution. It can confirm your balance and payment options. If your loan has been assigned to the CEBA Program, pay the CEBA Program directly by bill pay, cheque or wire transfer.

If you can’t pay the balance from cash on hand, refinancing lets you pay it off now and spread the cost over time.

Yes. Any balance still outstanding must be repaid in full, plus interest, by December 31, 2026.

Loan still with your financial institution: contact that bank or credit union. Loan assigned to the CEBA Program: contact the CRA CEBA Contact Centre at 1-800-361-2808 or visit ceba-cuec.ca.

The full outstanding balance, plus interest. Forgiveness of up to $20,000 on a $60,000 loan, or $10,000 on a $40,000 loan, was only available to businesses that repaid the rest by January 18, 2024, or had refinancing in place by then and repaid by March 28, 2024.

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 and may set up a payment arrangement based on your ability to pay. Interest keeps accruing during an arrangement.

Refinancing before the deadline lets you repay on terms you choose instead of through government collections.

Yes. Any forgiven amount is taxable income in the year the loan was received. Speak to your accountant if you need to correct a past return.

No. Refinancing offers come from private lenders, banks and credit unions, not from the Government of Canada. ceba.ca is an independent website that helps you compare those lenders.

No. The forgiveness deadlines passed in 2024. The CEBA Program states that eligibility decisions and repayment deadlines are final, and no organization, including your financial institution, can grant exceptions.

December 31, 2026. Outstanding CEBA loans are non-amortizing term loans, so the full principal is due on that date.

No. Paying early now saves interest, but forgiveness is no longer available.

Once your financial institution assigns the loan to the CEBA Program, you deal with the program and the CRA, not your bank. Some lenders may still fund a payoff, but options are usually better before the deadline. Compare lenders now to leave time for approval and funding.

Yes. You must repay your CEBA loan even if you close your business. Contact your financial institution, or the CRA if your loan has been assigned, to discuss repayment. For situations such as bankruptcy, speak to an accountant or a Licensed Insolvency Trustee.