Updated October 15, 2026
If your business still owes a CEBA loan, the full balance is due on December 31, 2026. A loan that isn’t repaid by then is likely to be assigned to the government’s CEBA Program for collection, with the Canada Revenue Agency (CRA) assisting. This guide explains what happens at each step and how refinancing compares with letting the loan go to collections.
Where CEBA loans stand in 2026
- Forgiveness is over. To keep up to $20,000 of forgiveness, businesses had to repay by January 18, 2024, or have refinancing in place by then and repay by March 28, 2024. The CEBA Program says these deadlines are final and no one can grant exceptions.
- Your balance is now a term loan. Eligible loans still outstanding became non-amortizing term loans, with 5% annual interest on the balance since January 19, 2024.
- The principal is due December 31, 2026. There is no further extension.
- Many businesses are in the same position. About 175,000 loans converted to term loans in January 2024, and roughly 70,000 loans worth about $3.5 billion had already been assigned for collection by late 2024, according to Finance Canada.
What happens if you don’t repay by December 31, 2026
- Your bank or credit union asks for payment. If you can’t repay when due, your financial institution will contact you to request a lump-sum repayment.
- The loan is assigned for collection. If it still isn’t repaid, your financial institution will likely be required to assign the loan to the CEBA Program. From then on you deal with the program, not your bank.
- The CRA steps in. The CRA assists with collecting assigned CEBA loans. It may review your circumstances case by case and set up a payment arrangement based on your ability to pay. Interest keeps accruing during an arrangement, so a balance can remain after the scheduled payments end.
Closing your business does not cancel the debt. The official CEBA FAQ states that you must repay your CEBA loan even if you close your business.
Your options before the deadline
| Option | Works best when | Watch for |
|---|---|---|
| Pay from cash on hand | You have the full balance available | Leaving too little working capital for slow months |
| Refinance with a new lender | The business is operating and can carry a monthly payment, but not a single lump sum | Rates above 5%; compare total cost, not only the payment |
| Ask your bank or credit union for a new loan | You have strong credit and a long banking relationship | Longer approval times; apply well before December |
| Let the loan go to collections | The business has closed or cannot borrow | Collection by the CEBA Program and CRA; speak to the CRA early about a payment arrangement |
Refinance or default: how to decide
Refinancing usually makes sense if your business is still running and can afford regular payments but cannot pay the whole balance on December 31. It replaces one large payment with predictable instalments, and you choose the lender and the terms instead of negotiating with a collections office.
Expect most lenders to charge more than CEBA’s 5%. Ask each lender for the total cost of borrowing, the term, any fees, and whether there is a penalty for paying early.
If the business has closed or has no capacity to borrow, contact the CRA as soon as the loan is assigned to discuss a payment arrangement, and consider advice from your accountant or a Licensed Insolvency Trustee.
What lenders will ask for
- How long you have been in business, and your monthly revenue
- Recent business bank statements
- Your current CEBA balance and the institution that holds it
- Business and personal credit history
Requirements vary by lender, so comparing several gives you the best chance of approval on good terms.
Next step
Compare lenders that refinance CEBA loans. Comparing is free, and applying early leaves time for approval and funding before December 31.
ceba.ca is an independent website and is not affiliated with the Government of Canada. Official program information is at ceba-cuec.ca. If your loan has been assigned to the CEBA Program, the CRA CEBA Contact Centre is at 1-800-361-2808.
