Short answer: ask the financial institution that holds your CEBA loan for a payoff statement dated for the day you plan to pay. Online banking usually shows the principal, but it may not include the interest that has built up since January 19, 2024.
Why your online balance may be wrong
CIBC, for example, says its online banking shows your CEBA loan balance but that “interest owed will not be reflected,” and that business online banking can take up to six weeks to update. If you pay only the balance you see online, you can leave interest unpaid and the loan open.
How to request your payoff statement
- Contact your branch or business advisor and ask for a CEBA payoff statement good to a specific date.
- Have your details ready: the business’s legal name, business number and the CEBA loan account number.
- Ask for the daily interest amount (the per diem), so you can adjust if your payment date moves.
- Ask how they want to be paid (transfer from your business account, wire or cheque) and how long it takes to process.
Bank-specific steps: TD, RBC, BMO, CIBC, Scotiabank and Desjardins.
Estimate the interest yourself
CEBA interest is 5% a year on the unpaid balance. On a $60,000 balance that is $3,000 a year, or about $8.22 a day. If none of that interest has been paid, a $60,000 balance would have built up roughly $8,850 of interest between January 19, 2024 and December 31, 2026. If your institution has been collecting interest monthly, you will owe much less. Your payoff statement is the number that counts.
If your loan has been assigned for collection
Once a CEBA loan is assigned to the CRA, your bank can no longer accept payment. Call the CRA at 1-800-361-2808 for the amount owing and how to pay. See CEBA collection letters from the CRA.
After you pay
Ask for written confirmation that the CEBA loan has a zero balance and is closed, and keep it with your records. If you are borrowing to pay it off, your new lender may ask for this letter. To compare financing, see the best CEBA refinancing lenders.
Sources
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.