Updated October 16, 2026
If your CEBA loan is with BMO (Bank of Montreal), the full balance is due on December 31, 2026. Interest has been charged at 5% a year since January 19, 2024, and forgiveness is no longer available. Here is how to pay off a BMO CEBA loan, and what to do if you can’t.
Step 1: Get your exact payoff amount
Your CEBA balance appears in BMO’s business online banking alongside your other accounts. Because interest accrues daily, ask BMO for a payoff amount as of the date you plan to pay, through your branch or account manager or the business banking number on your loan statement.
Step 2: Pay it off
- CEBA loans can be prepaid at any time. The standard CEBA loan terms allow you to repay all or part of the balance without a prepayment penalty; confirm this with BMO for your own agreement.
- Pay from your BMO business account, or move in funds from another lender or account first.
- Pay several business days before December 31 so the payment posts in time, and keep the confirmation.
- Ask BMO for written confirmation that the CEBA loan is paid in full and closed.
Step 3: If you can’t pay the full amount
- Ask BMO about a business term loan or line of credit to pay off CEBA. Bank approvals can take several weeks, so ask now.
- Compare online lenders if BMO says no or can’t move fast enough. Many can fund within days. Compare CEBA refinancing lenders.
- Pay down what you can. A smaller balance is easier to refinance and leaves less to go to collection.
What happens if a BMO CEBA loan isn’t repaid
BMO will ask for the full balance. If it is still unpaid, the loan is likely to be assigned to the CEBA Program, and from then on you deal with the CEBA Program and the CRA rather than BMO. The CRA may offer a payment arrangement based on your ability to pay, but interest continues. Closing the business does not cancel the debt. See CRA collections: default or refinance? and who is liable for a CEBA loan.
Other banks: TD, RBC, CIBC, Scotiabank, Desjardins.
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 with any bank named here. 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.