Short answer: a CRA letter about your CEBA loan means the loan is in default and has been assigned to the CRA for collection. The CRA collects defaulted CEBA loans for Export Development Canada (EDC), which runs the program. Do not ignore it: the CRA is looking for either a lump-sum payment or a payment arrangement.
Why you received it
A CEBA loan is assigned for collection when the financial institution that issued it cannot collect. That usually happens when:
- the loan was found ineligible for the program and was not repaid by December 31, 2023,
- required interest payments were missed after January 18, 2024, or
- the principal was not repaid by December 31, 2026.
Once the loan is with the CRA, your bank can no longer accept payment on it.
Check that the letter is real
CRA scams are common. Before you pay anything, confirm the debt by calling the CRA at 1-800-361-2808, the number published on canada.ca for CEBA debts, rather than a number printed in a letter, text or email you are unsure about. The CRA does not ask for payment by gift card, prepaid credit card or cryptocurrency.
What the CRA will do
The Department of Finance says the CRA reviews each business’s ability to repay case by case, “emphasizing fairness, empathy, and putting people first.” It aims for full repayment, either in one payment or through a payment arrangement. By November 2024, about 70,000 CEBA loans worth $3.4 billion had been assigned to the CRA, and about 1,000 payment arrangements had been set up.
What to do next
- Confirm the amount owing, including interest, and ask what the CRA needs from you.
- Decide between a lump sum and a payment plan. If your business can qualify for financing, borrowing to pay the CRA in full ends the collection file. Compare lenders that refinance CEBA loans.
- If you cannot pay in full, ask about a payment arrangement and only agree to payments you can keep up. See CEBA payment plans with the CRA.
- Get advice if you have other debts. Sole proprietors can speak with a Licensed Insolvency Trustee about their options. See can you settle a CEBA loan for less?
Who is liable
If your business is incorporated, the CEBA loan is the corporation’s debt; standard CEBA agreements had no personal guarantee. If you are a sole proprietor or partner, the debt is yours personally. Read is the CEBA loan personally guaranteed?
Sources
- CRA, Types of debt collected by the CRA
- Department of Finance Canada, CEBA defaults and collections
- Department of Finance Canada, CEBA questions and answers
This article is general information, not financial or legal advice. ceba.ca is an independent website and is not affiliated with the Government of Canada or any financial institution.