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

How to Pay Back CEBA Loan? A Detailed Guide

Reading Time: 5 minutes

Are you in need of quick cash? CEBA loans are a great way to get the money you need. CEBA provides interest-free loans to 900,000 small businesses to help them with their immediate cash flow needs. While the loans are interest-free, you still need to pay them back.

But how to pay back CEBA loans, and what precautions should you take? Read on to find out!

How to Pay Back CEBA Loan?

When it comes to paying back a CEBA loan, there are a few things that you need to keep in mind to understand how CEBA loan works. Given the economic condition, repaying the CEBA loan may sound daunting, but you can pay off your loan quickly with the right steps and strategy.

CEBA Loan Repayment Terms

Before rushing out to pay back your loan, you must review the CEBA loan repayment terms in detail for a better understanding.

  • Until December 31, 2023, your loan comes without any interest, and you are not obligated to make any principal payments.
  • If the loan is not repaid by January 1, 2024, it will automatically convert into a 2-year term with an annual fixed interest rate of 5%. Only monthly interest payments will be required during this period, with the remaining principal due in full by December 31, 2025.

Read more: Different Options for CEBA Repayment.

Understanding CEBA Loan Forgiveness Benefit

The eligible amount for loan forgiveness under the CEBA program varies based on the loan amount. This benefit allows a portion of your loan to be exempted from repayment, providing you with financial relief and other benefits:

  • If you have obtained a CEBA loan of $40,000, you can repay 75 percent of the total ($30,000) by December 31, 2023. The remaining 25 percent ($10,000) is also eligible for loan forgiveness benefits. This allows optimal flexibility in managing your loan repayment while benefiting from potential forgiveness opportunities.
  • If granted a $60,000 CEBA loan, you could repay 66 percent of the total ($40,000) by December 31, 2023. The remaining 34 percent ($20,000) is also eligible for loan forgiveness. This provides an opportunity to optimize your financial situation while fulfilling your obligations.

If you cannot make the full payment, the lender has to pay the forgivable portion of $10,000 or $20,000 in the first year. Consider developing a well-structured repayment plan that ensures timely repayment of the loan’s repayable portion. By doing so, you can fully leverage the forgiveness benefit while staying on track toward financial freedom.

How to Make CEBA Loan Payments at CIBC?

When it comes time to make your CEBA loan payments, a few options are available. You can pay the loan in full or set up automatic repayment plans.

  • You can choose from three payment options for monthly payments: direct debit from your bank account, online banking, or electronic fund transfers (EFT). Before signing up for any payment option, review the terms and conditions of your loan agreement to ensure that it is compatible with your preferred method.
  • You can pay via wire transfer or EFT directly from your bank account for full payments. This allows for faster processing and confirmation of payment. However, these methods may incur transaction fees, so check with your financial institution before making the payment.

Step-by-Step Guide to Repay CEBA Loan Payment

Follow the below steps to repay CEBA loan payment:

  • To repay the CEBA loan, you must sign in to CIBC Online Banking for Business.
  • Add your BBCC (Business Banking Convenience Card) and password.
  • Next, visit the customer services tab.
  • Choose CEBA loan repayment under “Account Services.”
  • Next, choose the CEBA loan you want to repay under the ‘Account’ tab.
  • In the next window, choose the “From Account.”
  • Enter the amount you want to pay and click on “Submit.”

When you are done, don’t forget to review your payment details. Please ensure that your account has sufficient funds until your payment has been successfully processed.

Note: It may take anywhere from 24 to 72 hours for CEBA loan payments to be processed. Also, don’t forget to print the payment receipt for your records.

Is it important to Take Financial Advice to the Account Professional?

Yes, it is important to take professional advice from a financial advisor. They can help you repay your CEBA loan and provide relevant information about different payment options available to you. Besides that, they can also guide how to reduce tax liability while repaying the loans.

You can also connect to the dedicated CIBC Business Advisor with the right expertise to answer any questions regarding CEBA loan payments and repayment options. Whether you need help with borrowing or managing cash or simply some extra support, we’ll make it easy to achieve your ambitions.

You should also review your credit score before taking out a loan. A good credit score is important to get the most competitive interest rates and improve your chances of qualifying for CEBA loans.


The CEBA loan is a great way to get immediate relief during tough financial times. It helps small businesses to stay afloat during the pandemic. However, it is important to understand the loan repayment terms and obligations before taking out a CEBA loan.

The best way to handle your debt is to create a well-structured repayment plan which must include timely payments and other strategies, such as loan forgiveness benefits offered by the government.

It’s also important to take professional advice from a financial advisor and review your credit score before applying for a loan. Anything that can potentially lower future payments or interest rates should be considered. You can manage your debt and avoid financial trouble with the right strategy.

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