Short answer: Refinancing a Canada Emergency Business Account (CEBA) loan usually takes about two weeks at a bank or credit union and 2 to 5 business days at an online lender. Most owners only go to an online lender after the bank says no, so the two timelines add up. To pay off your loan by December 31, 2026, apply by Monday, November 16, ideally to your bank and an online lender at the same time, and send your payoff by Friday, December 18.
How long does each step of CEBA refinancing take?
Refinancing has three steps: getting approved, getting the money into your business account, and paying off the CEBA loan. Payoff means paying the full balance so the loan is closed. Here is how long each step usually takes.
Loan timelines are from Garron Helman's experience as a lender. Posting times are from each bank's own CEBA instructions. Your bank may differ, so ask.
The bank timeline is the least predictable. If the bank asks for more information, such as updated financial statements or an explanation of a slow month, the clock stops until you send it. That can take days if your bookkeeper is busy.
Why do the bank and online lender timelines add up?
Because most owners try one, then the other. They ask their bank first, which is sensible: a loan from the bank or credit union that holds your CEBA loan is usually the cheapest and simplest. But if the bank says no after two weeks, the online lender's clock only starts then.
Example: an owner asks the bank on Monday, November 30. The bank says no on Friday, December 11. An online lender then takes 2 to 5 business days, so the money arrives between December 15 and December 18. That is the last safe day to send the payoff, with no room for a single delay.
The fix is simple: apply to your bank and an online lender at the same time. If the bank says yes, you take the bank loan. If it says no, your backup is already moving. Before you apply, ask each lender whether applying affects your credit score. Driven says applying with it does not.
When should I start? Work back from December 31
Here is the plan, working backward from the deadline. It assumes you apply to your bank and an online lender in the same week.
Why December 18 and not December 31? Christmas Day is Friday, December 25. Boxing Day falls on Saturday, December 26, so it is observed on Monday, December 28, and many banks and credit unions are closed. That leaves only three business days in the final week: December 29, 30 and 31. A payment sent then may not post until January.
The latest safe start with a bank is the week of November 30, and only if you apply to an online lender at the same time. After that, the bank's two weeks no longer fit before December 18.
Garron's take
Business owners are incredibly busy, so they put this off and hope it goes away. It will not. December 31 is a firm deadline. Apply to your bank and an online lender at the same time. Having a backup plan is always better than waiting on one answer, because by the time the bank says no, you may be out of time.
How long does the payoff take to reach my CEBA loan?
Even after the new money arrives, the payoff is not instant. BMO says a CEBA payment may take up to 3 business days to appear on the loan. Laurentian Bank says 5 to 6 business days through online bill payment, and up to 10 business days before the money is taken from your account if you use its online repayment form instead. Ask your bank which method is fastest, and use that one.
Ask for a payoff statement for the exact day you will pay. Interest builds up every day: on a $60,000 balance at 5%, that is about $8.22 a day. If you send last month's figure, you may leave a small balance behind and the loan will not close.
Should I pay off CEBA as soon as the new loan funds?
Usually, yes. Once the new loan funds, you pay interest on two loans until CEBA is closed. Here is what holding both costs for one week on $60,000, using a 20% example rate for the new loan (inside the ranges online lenders publish, before fees):
- New loan at 20%: about $230 a week
- CEBA at 5%: about $58 a week
- Together: about $288 a week while the money sits unused
The buffer in the plan above is there in case approval runs late, not to hold the money. Send the payoff the day it lands.
How fast are online lenders for CEBA refinancing?
If you want a backup to your bank, these are the three online lenders ceba.ca compares, in alphabetical order. Figures were checked in October 2026. Speed claims are each lender's own and describe the fastest case.
ceba.ca may earn a referral fee if you get financing through a lender we link to. It does not change what we write or the order lenders appear in. How we make money
Checked October 2026. Sources: driven.ca; Finder and Loans Canada reviews. Confirm current terms with each lender, and compare the total cost repaid, including fees, not just speed or rate.
Short on time? Answer a few questions and we will match you with lenders whose minimums fit your business.
Compare lendersWhat if I cannot get approved in time?
Then you have a decision to make. Your bank or credit union will ask for a lump-sum payment. If the loan stays unpaid, it will likely be assigned to the government's CEBA Program for collection. The Canada Revenue Agency (CRA) helps collect assigned loans and may set up a payment arrangement based on what you can afford, reviewed case by case.
A CRA payment arrangement can cost less than a new loan. On $60,000, CEBA interest at 5% is at most $250 a month, while a 20% loan charges about $1,000 in interest in its first month. The trade-off: the file goes to collections, and the CRA can deduct unpaid amounts from your tax refunds and federal benefits. If your business can carry a new loan payment, refinancing closes the file cleanly. If it cannot, a new loan may make things worse. Ignoring letters from your bank or the CRA is never a plan.
For the side-by-side, read Refinance or go to CRA collections? and how CRA payment plans work. For the full week-by-week plan, see our CEBA deadline checklist.
Frequently asked questions
How long does it take to refinance a CEBA loan?
At a bank or credit union, allow about two weeks, or 10 business days not counting holidays, and longer if the bank asks for more documents. Online lenders usually take 2 to 5 business days once you apply. Then allow a few more business days for the payoff to post to your CEBA loan: up to 3 at BMO and 5 to 6 at Laurentian Bank.
When should I start refinancing my CEBA loan?
Apply by Monday, November 16, 2026. That leaves time for a bank decision, a second try with an online lender if the bank says no, and a payoff sent by Friday, December 18. The latest safe start with a bank is the week of November 30, and only if you apply to an online lender at the same time.
Can I apply to my bank and an online lender at the same time?
Yes. Having a backup is safer than waiting for one answer. If your bank says no after two weeks, an online application already in progress can save a week or more before the December 31, 2026 deadline. If the bank says yes, you take the bank loan. Ask each lender whether applying affects your credit score. Driven says applying with it does not.
How long does a CEBA payoff take to show on my loan?
It depends on your bank. BMO says a CEBA payment may take up to 3 business days to appear. Laurentian Bank says 5 to 6 business days through online bill payment, and up to 10 business days before the money is taken if you use its online repayment form. Send your payoff by Friday, December 18, 2026 to leave room.
What happens if my refinancing is not approved before December 31?
Your bank or credit union will ask for a lump-sum payment. If the loan stays unpaid, it will likely be assigned to the government's CEBA Program, and the Canada Revenue Agency (CRA) may set up a payment arrangement based on what you can afford. The CRA can also deduct unpaid amounts from tax refunds and federal benefits. Call your bank before December 24 to ask what it needs.
Sources
- CEBA Program, Loan repayment FAQ (ceba-cuec.ca, official program site)
- Department of Finance Canada, CEBA briefing binder, part 2 (December 2024)
- BMO, CEBA repayment instructions (posting time)
- Laurentian Bank, CEBA questions and answers (posting time and repayment form)
- Federal statutory holidays in 2026 (Boxing Day observed December 28)
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.