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The Canada Emergency Business Account (CEBA) is an initiative of the Government of Canada.  The official Government website is



The Canadian Emergency Business Account (CEBA) is a government relief program aimed at providing interest-free loans to Canadian small businesses to help cover operating costs during periods of reduced revenues due to the COVID-19 pandemic.

Applications are typically made through your business’s primary financial institution, following specific application procedures for each bank or credit union.

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

Yes, there was an application deadline which is now closed.

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

The program was designed as a one-time, interest-free loan to help small businesses cover operating costs. Therefore, if you have already repaid your CEBA loan, you generally would not be able to re-borrow the repaid amount.

Processing times may vary but are typically a few weeks.

You should contact your primary financial institution or visit the official CEBA website for the most current information.


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.

You may be able to appeal the decision or provide additional information. Contact your bank or the CEBA call center for more guidance.


The loan itself is not taxable, but if a portion of the loan is forgiven, that amount is considered taxable income.

The CEBA loan is interest-free until January 18, 2024.  If not repaid by January 18, 2024 and a loan application with your financial institution has not been submitted, an interest rate of 5% per year is payable monthly through to December 31, 2026.


Repayment of your Canadian Emergency Business Account (CEBA) loan can usually be done through your financial institution where you initially received the loan. The process typically involves the following steps:

  1. Contact your financial institution: Reach out to your bank or credit union where you got the CEBA loan. Each institution may have its own repayment procedures, so it’s important to confirm the details with them.
  2. Request a loan repayment: Let your financial institution know that you want to repay your CEBA loan. They will guide you through their specific repayment process.
  3. Repay the loan: Once you understand the repayment process, you can proceed with repayment. This usually involves transferring funds from your business account to pay off the loan balance.
  4. Confirm repayment: After you’ve repaid the loan, it’s a good idea to confirm that your financial institution has received the payment and applied it to your loan balance.

Remember, if your loan is fully repaid by the forgiveness date up to $20,000 of the loan will be forgiven.

Always consult with your financial institution or check the most recent guidelines provided by official government sources for the most accurate and current information.

Yes, but if the loan is repaid by January 18, 2024 (originally the end of 2022), up to $10,000 for a $40,00 loan and to $20,000 for a $60,000 loan will be forgiven.

If you applied to your financial institution for CEBA refinancing, the forgiveness deadline is extended to March 28, 2024.

If you have any questions or need further clarification regarding your Canadian Emergency Business Account (CEBA) loan repayment obligations, you should contact your financial institution where you initially received the loan. They have access to your specific loan details and should be able to guide you through your repayment requirements.

Additionally, for general information or questions about the CEBA program, you can visit the CEBA website or contact the CEBA Call Centre at 1-888-324-4201.

Under the terms of the Canadian Emergency Business Account (CEBA) program, you are expected to repay the full amount of the loan. However, if the loan is repaid by January 18, 2024, a portion of it is forgiven.  If you applied for CEBA refinancing with the financial institution that holds your CEBA loan, the repayment deadline to qualify for forgiveness is March 28, 2024.

For a $40,000 CEBA loan, if $30,000 is repaid by the deadline, $10,000 (or 25% of the loan) will be forgiven.

For a $60,000 CEBA loan, if $40,000 is repaid by the deadline, $20,000 (or 33% of the loan) will be forgiven.

If you do not meet the repayment deadline, you will be required to repay the full amount of the loan plus any accrued interest.

If the Canadian Emergency Business Account (CEBA) loan isn’t repaid by the deadline provided in your repayment terms, the following might occur:

Loss of Forgiveness Benefit: Initially, CEBA loans have up to a $20,000 forgiveness benefit if repaid by January 18, 2024. If you don’t meet this deadline, you will lose this forgiveness benefit.

Interest Accrual: The CEBA loans are interest-free until December January 18, 2024. If the loan isn’t repaid by the deadline, interest starts accruing at 5% per year on the outstanding balance. The loan principal is payable by December 31, 2026.

Collections Process: If you can’t repay your CEBA loan, the government has announced that the Canada Revenue Agency (CRA) will be responsible for managing delinquent loans. This could involve entering a collections process and could potentially impact your credit score.

If you’re unable to repay your CEBA loan by the deadline, it’s best to reach out to your financial institution as soon as possible. They might be able to provide advice or options tailored to your situation.

Under Canadian tax law, a forgiven loan generally constitutes income that must be reported on your income tax filing. Therefore, if a portion of your CEBA loan is forgiven, it is likely that you would need to report it as income.

As for when to report it, this would generally be during the tax year in which the loan is forgiven. For example, if your loan is forgiven in 2023, you would report the forgiven amount on your income tax filing for the 2023 tax year, which you would typically file in early 2024.

However, tax laws can be complex and may change, and there may be exceptions or special provisions applicable to the CEBA program. You should always consult with a tax professional or refer to the most recent guidelines provided by the Canada Revenue Agency and other official government sources for the most accurate and current information.

No. The Canadian Emergency Business Account (CEBA) program, as outlined by the Government of Canada, did not include any specific refinancing offerings. CEBA was designed as an interest-free loan program to provide immediate relief for small businesses and not-for-profits experiencing temporary revenue reductions.

The program provided a certain amount of the loan as a non-repayable grant if the balance of the loan was repaid by a specific date. However, this does not constitute a refinancing offer, but rather an incentive for timely repayment.

The non-forgivable portion of the loan must be repaid by January 18, 2024 to qualify for the forgiveness benefit.

However, if a loan application is made with the financial institution holding the CEBA loan, an extension to March 28, 2024 will be granted.

The original maturity date was December 31, 2022 to qualify for the forgiveness and the loan maturity date was December 31, 2025. However, now the maturity date to qualify for the forgiveness is January 18, 2024 and the loan maturity date has changed to December 31, 2026.

Yes, provided you pay off the loan by the forgiveness deadline, you would still be eligible for loan forgiveness.

After the maturity date the loan would be in default and the CRA would commence collections.

If your business is closing, you are typically still responsible for repaying your Canadian Emergency Business Account (CEBA) loan. The loan is not forgiven upon the closure of a business.

However, in the event of a business closure or bankruptcy, the conditions for the repayment of the loan, including the timing and interest, may be subject to specific legal provisions, bankruptcy laws, and the terms of the CEBA loan agreement.

This is a complex situation, and it’s important to consult with a financial advisor or legal professional who is familiar with these matters.

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