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

Is CEBA Still Available?

is ceba still available?
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On April 9, 2020, in response to the severe financial strain caused by the COVID-19 pandemic, the Canadian government introduced the Canada Emergency Business Account (CEBA). This initiative offered interested, eligible small businesses a lifeline in the form of interest-free loans. The question that now lingers on every entrepreneur’s mind is: Is CEBA still available? And if so, are there any changes to be aware of? Let’s find out!

What Is CEBA?

Is CEBA Still Available

The Canada Emergency Business Account, or CEBA loan, is a beacon of hope birthed from the strategic minds within the Canadian Government, designed specifically to shield small businesses from the economic fallout of the COVID-19 pandemic. CEBA unloads a financial arsenal in the form of interest-free loans, with loan amounts soaring up to $60,000. Moreover, this is not just about immediate relief; it’s about enabling businesses to sustain their operations at a time when their revenues are only a shadow of their former selves.

The cherry on top of the CEBA initiative is the CEBA loan forgiveness clause. If you are an eligible CEBA borrower and you manage to repay the balance of the loan on or before the end of December 2023, the government will forgive a third of the loan – that’s up to $20,000! This is a clear demonstration of the government’s commitment to support and uplift the business community during these trying times.

Is CEBA Still Available?

Is CEBA Still Available

As of September 2023, the application period for the CEBA program closed on June 30, 2021, marking the end of an era where the government offered a financial lifeline to struggling businesses. In short, new applications are no longer being accepted.

Beyond the application period’s closure, the program’s funding period has also ended. This means that businesses that had applied and were approved for the loan no longer have the option to draw funds from this program. However, the loan forgiveness clause still stands for those who successfully secured the CEBA loan before the deadline. Businesses that repay the loan balance on or before the end of December 2023 will still be eligible for loan forgiveness of up to $20,000.

CEBA Loan Extension: Is CEBA Again Extended?

CEBA loan extension

In the wake of the ongoing struggle faced by small businesses due to the COVID-19 pandemic, advocacy groups, including the Canadian Federation of Independent Business (CFIB) and Restaurants Canada are pushing for further financial relief measures. A key component of these proposed measures is an extension of the repayment deadline for the Canada Emergency Business Account (CEBA) loan to December 2025.

The CFIB, a leading advocate for independent businesses across Canada, stands firm in its belief that such an extension would significantly lessen the financial burden for businesses during this challenging period. The existing repayment timeline, set amidst the continuing pandemic and accompanying economic uncertainties, poses additional worries for business owners who are concurrently dealing with the daunting task of rebuilding their operations.

Now, why would an extension of the CEBA loan repayment deadline matter? Here are the major reasons:

More Time for Business Recovery

Firstly, extending the CEBA loan repayment deadline would provide businesses with a more generous timeframe to recover from the financial implications of the pandemic. Many companies, primarily small and medium-sized enterprises (SMEs), have been hit hard by the economic downturn, with sales plummeting and operational costs rising.

These businesses need time to rebuild their customer base, regain lost sales, and stabilize their financial footing. The pressure of imminent loan repayments can exacerbate the financial stress facing these businesses. Consequently, a longer repayment period would afford these struggling companies the breathing room they need to focus on recovery, rather than diverting valuable resources to expedite loan repayment.

Enhancing Cash Flow

Secondly, extending the CEBA loan repayment deadline could serve as an additional source of cash flow for businesses. In the current uncertain economic climate, cash flow is king. Many businesses are grappling with delayed payments from customers and reduced sales, which significantly impact their cash reserves. The obligation to repay loans can further drain these already depleted resources, threatening the survival of the business.

By deferring the repayment deadline, businesses would effectively have access to an additional cash buffer. This could prove particularly crucial for businesses still trying to find their footing in the unstable economic landscape. It could help cover immediate operating expenses, thus keeping the business afloat while it navigates the challenging road to recovery.

Despite CEBA being one of the most successful financial relief initiatives for small businesses, its current repayment terms are arguably inflexible. A pushback to December 2025 could potentially alleviate some of the pressure faced by these entities. However, it is important to remember that these are merely proposals at this stage. Businesses should thus continue to consider their own financial situation and make informed decisions accordingly.


In conclusion, the Canada Emergency Business Account (CEBA) has served as a critical lifeline for small businesses grappling with the economic implications of the COVID-19 pandemic. While the application period for this program officially concluded in June 2021, the lasting effects of its provisions continue to resonate within the business community. The loan forgiveness clause remains a beacon of hope for those who secured the loan before the cutoff.

Current advocacy for an extension of the repayment deadline, if successful, could bring additional relief to businesses, offering them more time to recover and improve cash flow. Despite this, it is essential for businesses to remain pragmatic, continuously evaluating their financial situation and making informed decisions based on their unique circumstances.

Frequently Asked Questions

Will CEBA loans be forgiven?

CEBA’s forgiveness clause serves as a financial lifeline for many businesses struggling in today’s challenging economic climate. It’s important to note that the magnitude of this forgiveness depends on the original loan amount. Essentially, CEBA provides interest-free loans up to $60,000. For businesses borrowing less than $40,000, a quarter of the loan will be forgiven if the principal is fully paid by December 31, 2023. So, if you’ve received a loan of $40,000 and manage to repay the full amount before the deadline, you’ll be eligible to keep $10,000 as part of the CEBA loan forgiveness program.

Will CEBA be extended to 2024?

As of now, there is no official confirmation about extending the Canada Emergency Business Account (CEBA) to 2024. Advocacy groups, however, are pushing for an extension of the loan repayment deadline to December 2025 to alleviate financial stress on businesses amid the ongoing pandemic. The decision regarding extension lies with the governing authorities and will be communicated once finalized.

What happens to CEBA loan if business closes?

If a business closes, the obligations for CEBA loan repayment remain, complicating the financial situation of the business. As per the Canadian Government’s provisions, a business owner must repay the loan even if they’ve decided to cease operations or sell the business. This stance is rigid and unyielding, and the loan recovery process will continue regardless of the business’s operational status. An exception exists for incorporated businesses that have filed for bankruptcy. In such cases, as the corporation is considered a separate legal entity, the liability to repay the CEBA loan is absolved under the protection of legal bankruptcy.

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