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

Navigate CEBA Refinancing: A Comprehensive Guide for Your Business

Business Owners Navigating CEBA Repayment
Reading Time: 11 minutes

Are you looking to refinance your CEBA loan? This guide explains the CEBA refinancing process, highlights the benefits, and details how it impacts your journey to loan forgiveness. With a focus on straightforward steps for eligibility and application, you’ll discover the insights needed to navigate the cost of refinancing effectively and enhance your business’s financial prospects.

Key Takeaways

  • CEBA refinancing allows businesses to manage their Canada Emergency Business Account loans more effectively, potentially saving money and maximizing the potential for loan forgiveness by extending repayment terms and improving financial flexibility.
  • To qualify for CEBA refinancing, businesses must meet specific eligibility criteria, including having a qualifying CEBA loan, demonstrating strong cash flow, and maintaining a favourable credit rating, and they must work with a financial institution or alternative lender for the refinancing.
  • The CEBA program includes an interest-free period until January 18, 2024, with partial loan forgiveness available if specific repayment conditions are met by January 18, 2024. Additional government programs may offer aid for a range of businesses to replace CEBA.

Understanding CEBA Refinancing

Business person reviewing CEBA Loan

The Canada Emergency Business Account (CEBA) provided loans of $40,000 or $60,000 to almost 900,000 businesses in Canada during the COVID-19 pandemic.  Many companies have repaid the loan and others are looking for additional capital to help them repay the loan and take advantage of loan forgiveness. Merchant Growth, for example, provides refinance loans which allow companies to pay back what they owe the government through smaller weekly payments over an agreed-upon time frame. We will take an in-depth look at CEBA financing and its advantages when it comes to managing debt effectively.

Firstly, refinancing CEBA gives business owners increased flexibility with regard to payment options – extending the repayment terms so that higher monthly amounts can be paid off more easily. This type of budgeting makes tackling large sums much easier as merchants aren’t crippled by debts from previous transactions or emergency investments made earlier due to COVID-19 disruptions.

It’s clear then how beneficial it is for entrepreneurs who are currently under pressure because of long-term economic consequences: specially crafted solutions like CEBA.CA allow those with a CEBA loan to compare lenders so that they can have the best chance of obtaining CEBA refinancing at the best rates. This is an investment well worth making during these troubled times!

The Basics of CEBA Loan

The repayment terms for the Canada Emergency Business Account (CEBA) loans are very accommodating. Up to $20,000 of the CEBA loans may be forgiven if they are repaid in full by January 18, 2024. Otherwise, it will convert into a 3-year term loan with an interest rate of 5% per annum. Monthly installments start on January 19, 2024 and the principal repayment must be before December 31, 2026.

Refinancing Your CEBA Loan

Refinancing can be viewed as a strategic decision, granting multiple advantages such as repaying the loan before the cut-off time and saving money. To maximize the potential for partial forgiveness of your CEBA loan prior to its deadline, take advantage of CEBA.CA’s lender comparison tool. This involves filling out a short survey which produces a tailored list of lenders that can meet your needs.

How to Qualify for CEBA Refinancing

Man organizing CEBA refinancing

CEBA refinancing is a simple process requiring businesses to fit the right pieces in their place. To be eligible for CEBA refinancing, firms must have a CEBA loan, demonstrate strong cash flow and possess an ideal credit record. Partnering with financial institutions will allow companies access to available refinancing products formulated specifically for CEBA loans which can grant up to $40,000 at rates as low as prime plus 1.25% interest rate payable over a 36-month period though details may vary by lender.

Working with a Financial Institution

When it comes to obtaining CEBA refinancing, working with a financial institution is much like having your own money expert. TD and RBC Royal Bank are two organizations that can support businesses in the refinance process. The Big Six banks, Meridian Credit Union, and other similar establishments offer alternative routes for small business customers seeking CEBA refinancing solutions prior to January 18, 2024. Applying via RBC’s mobile app or online banking could be the most straightforward way ahead when dealing through them directly – usually offering more cost-effective solutions than elsewhere too!

A key change that the federal government announced on September 14, 2023 relates to the deadline for forgiveness.  If a business applies to the financial institution that holds their CEBA loan for refinancing, the deadline for loan forgiveness is automatically extended to March 28, 2024.  This gives businesses an additional two and a half months to seek alternative CEBA refinancing arrangements.  One point to note is that interest will begin to accrue at a rate of 5.0% per year on January 19.

Maximizing Loan Forgiveness Opportunities

Lady at Cafe Maximizing CEBA refinancing

When it comes to loan forgiveness, understanding the repayment deadlines and terms is essential for unlocking partial debt relief. CEBA loans will remain interest-free until January 18, 2024, offering a benefit to borrowers during this period. After that date, any outstanding balance on the loan must be repaid in full or else 5% interest per year begins accruing. A maximum of $20,000 may potentially qualify for forgiveness if fully paid back before its deadline. 

Repayment Deadlines and Terms

CEBA loan repayment deadlines and terms provide guidance along the journey of paying back your loan. In order to take advantage of up to 33% forgiveness from a $60,000 loan—or a potential amount of $20,000—repayment must occur by January 18, 2024. On January 18, 2024, any CEBA loans that have not been fully repaid will no longer be eligible for this program. Instead, borrowers may need to pay off all their debt incurred, including the original forgivable sum.

Managing Your CEBA Loan Balance

Regularly Scheduled Debt Service

For CEBA loans, regularly scheduled debt service consists of predetermined payments that cover both the principal and interest. This type of disciplined repayment shows financial solvency as it implies devoting income to paying off obligations. This is essential for maintaining a sound fiscal standing.

It is recommended to make sure all necessary repayments are met by January 18th, 2024 in order to ensure regular debt servicing practices remain consistent– much like setting alarms on your calendar so you do not miss important dates.

Monitoring Outstanding Balances

Being able to effectively manage a CEBA loan is essential for understanding outstanding debts and liabilities, planning financially, as well as fulfilling repayment terms. This can be achieved through several steps such as comprehending the due dates of all payments, creating a comprehensive financial plan, and consistently reviewing funds. 

By keeping track of your CEBA loan balance, you will be better prepared for debt obligations while also enabling a more detailed budget assessment that contributes to greater financial security overall. With digital tools like TD Bank’s online banking platform or mobile app, businesses have accessible methods at their disposal which enable them easy oversight over remaining balances connected with this form of financing solution.

Navigating the CEBA Refinancing Application Process

Collecting documents for CEBA Loan Refinancing

When seeking to refinance a CEBA loan, it is similar to maneuvering through an intricate financial path. The application process necessitates gathering the applicable paperwork and submitting them. This will include filling out the required form along with supplying Master Business License documents or Articles of Incorporation plus recent financial or bank account statements.

Care should be taken during this stage so as not to present incomplete information or misinformation in these records that are necessary for applying for refinancing via CEBA Loan Refinancing methods available from different lenders such as Meridian Financial and Merchant Growth which offers quick online processing when filing applications digitally.

Preparing Necessary Documentation

Completing a CEBA refinancing application requires businesses to have the necessary paperwork ready. This usually means having an up-to-date Master Business License, Articles of Incorporation and financial statements that accurately reflect their current situation, all in order before applying. To properly provide payroll information for this type of financing, it is essential that you gather any documents needed as per the specific instructions outlined by CEBA beforehand, otherwise, accuracy can be compromised.

Submitting Your Application

Once the requirements for business eligibility have been met and all relevant documentation has been collected, it is time to contact a financial institution regarding a CEBA refinancing loan. Subsequently, submit an application online in order to pass through this final hurdle of your financial race.

Upon approval or rejection of the refinancing loan request, details including repayment options and forgiveness eligibility will be communicated via email from the lender. Processing times may differ, so patience needs to be exercised while awaiting updates on status information. 

Alternative lenders

If the businesses is turned down by their primary financial institution the best place to seek financing is from alternative lenders.  Canada has a thriving financing community.  Some lenders have a deep technology stack which allows them to almost fully automate the lending process while others prefer to get to know their borrowers.  Generally, lenders look for a minimum of $100,000 in annual sales, an OK credit rating and cash flow that provides comfort that the loan can be repaid.

The rates of alternative lenders are more than the bank, however, it is typically far less than continuing with the CEBA loan.  For this reason, CEBA refinancing makes sense for almost all situations.  Because of the government forgiveness of up to $20,000, it is unlikely that continuing with the CEBA loan is better than CEBA refinancing, even if the refinancing rates are high.  Additionally, alternative lenders have a number of types of lending facilities so companies can tailor the repayment terms to best suit their needs.

Additional Support for Small Businesses

Small businesses have multiple opportunities to access support in order to recoup their finances during the pandemic. Government assistance programs, such as no-interest loans and grants, are available. Innovation Science and Economic Development Canada together with Mentor Works can provide lists of helpful initiatives aimed at aiding business growth strategies.

Government of Canada Programs

The Government of Canada had a variety of programs to assist businesses during the pandemic. Small Canadian businesses can benefit from an Interest-free loan up to $40,000 with its Emergency Business Account (CEBA). The program offers support for self-employed individuals and aid specifically designed for Indigenous enterprises too.

Wage subsidies under CEWS were provided as well, offering 75% coverage in wages paid by employers over a 12 week period retroactively since March 15th, 2020 if they have suffered at least certain revenue losses through a yearlong time frame starting off on March 2020 until February 2021.

CERS extended help covering essential expenses such as payroll or rent among other needs associated with working capital, capping each qualified location’s reimbursement allowance summing no more than $75,000 per interval reaching max total cost countable via affiliated entities amounting to up to $300k.

Lastly, HASCAP credit facility allocated loans between range limits: $25k to $1 million to heavily impacted firms.


CEBA refinancing is a key tool for companies to manage their finances effectively in the complex post-pandemic economy. It’s essential that businesses familiarize themselves with its benefits and meet eligibility requirements before exploring this option as it has great potential for success. Partnering with a financial institution, applying for partial loan forgiveness, and remaining mindful of debt repayment are all important elements when considering CEBA refinancing. They should be aware that there may also be other support mechanisms available such as government programs or alternative financing options which could help strengthen their future prospects.

Frequently Asked Questions

Will CEBA be extended in 2024?

CEBA loans must be paid back by January 18, 2024 if a business has not applied for CEBA Loan refinancing with their primary financial institution. If it is not fully repaid by that date, then the loan will convert to a non-amortizing term loan with full principal repayment due on December 31, 2026.

How much of the $40,000 CEBA loan is forgivable?

The CEBA loan offers up to $10,000 of forgiveness on the initial amount borrowed – equivalent to 25% of it.

Is CEBA going to be forgiven?

The outstanding balance of up to $20,000 for a $60,000 loan will be forgiven if repayment is made on or prior to January 18, 2024.

What is the purpose of CEBA refinancing?

CEBA refinancing is a way to aid businesses with their existing CEBA loans by adjusting repayment terms and offering potential loan forgiveness from the Canada Emergency Business Account.

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