If your business still has an outstanding CEBA balance, the final repayment date is 31 December 2026. After that date the loan is treated like any other defaulted commercial debt. This page explains what the deadline means, what happens if you miss it, and the funding options open to you if you cannot clear the balance from cash flow.
Also carrying a CRA balance? See CRA payment plans and your options if you cannot pay.
The 31 December 2026 deadline in plain terms
The Canada Emergency Business Account closed to new applications years ago, but a large number of Canadian businesses are still carrying a balance. Three facts matter now:
- The final repayment date is 31 December 2026.
- Outstanding balances carry interest at 5% a year.
- Partial forgiveness is gone. Businesses that did not repay by the 19 January 2024 deadline no longer qualify for the forgivable portion, and the balance converted to an ordinary term loan.
In other words, the question is no longer whether you can save part of the loan. It is whether you can clear the balance in full by the end of the year.
What happens if you miss the deadline
Missing 31 December 2026 does not simply mean another extension. Two things can follow:
- Your lender can demand the full balance immediately. The loan stops being a scheduled repayment and becomes a demand for the whole amount.
- The debt can be transferred to the federal government for collection. Once that happens you are dealing with a government collection process rather than your own bank.
Either outcome is harder to manage than the loan itself, and both can affect your ability to borrow later. If the balance is going to be a problem, the time to deal with it is now, while you still have choices.
Your options if you cannot repay in full
1. Clear it from cash reserves
The cheapest option, where it is available. Before you rule it out, look at what is actually sitting in receivables and whether any of it can be pulled forward. Many businesses have more room here than they assume, particularly if they have not chased ageing invoices recently.
2. Refinance with a term loan
Replacing the CEBA balance with a conventional term loan spreads the cost over a longer period at a predictable monthly payment. This works well if your business has a strong credit profile, consistent profitability and time to go through a bank’s approval process. It works less well if you need a decision quickly or your last two years have been uneven.
3. Bridge the gap with revenue-based funding
A merchant cash advance provides a lump sum now, repaid as an agreed percentage of your ongoing sales rather than a fixed monthly instalment. Payments rise when trade is strong and fall when it is slow, which suits businesses with seasonal or uneven revenue. Approval is based primarily on sales performance rather than credit score, and funding is typically available within 24 to 48 hours.
This is the option most relevant to a hard deadline, because it is the one that can move fastest. It is not the cheapest form of capital, so it is best used where the cost of missing the deadline is higher than the cost of the advance.
4. Talk to your lender before the date, not after
Lenders deal with this far better in November than in January. If you expect a shortfall, contact the institution that holds the loan and say so early. You may not get an extension, but you will understand exactly what they intend to do and when.
5. Get professional advice if the business is under real strain
If the CEBA balance is one of several debts you cannot service, speak to a Licensed Insolvency Trustee or your accountant before taking on more borrowing. Additional funding helps a business with a timing problem. It does not help a business with a solvency problem, and taking it on in that situation makes things worse.
Which option fits your situation
| Your position | Usually the best route |
|---|---|
| Profitable, strong credit, time to apply | Bank term loan refinance |
| Healthy sales, uneven months, deadline close | Revenue-based funding |
| Cash tied up in unpaid invoices | Invoice factoring or chasing receivables |
| Balance is small relative to monthly revenue | Clear it from cash flow |
| Multiple debts you cannot service | Licensed Insolvency Trustee first |
How Bizfund can help
We fund Canadian businesses against their revenue rather than their balance sheet. For a CEBA balance that has to clear before the end of the year, that matters in three ways:
- Speed. Decisions and funding typically within 24 to 48 hours, which is what a fixed deadline needs.
- Approval based on sales. We look at how your business trades, not only at your credit score.
- Repayment that moves with you. You repay a percentage of sales, so quiet months cost you less than busy ones.
If you want to understand the numbers before committing to anything, start an application or talk to us and we will tell you plainly whether this is the right tool for your situation.
Frequently asked questions
When is the final CEBA repayment deadline?
31 December 2026. Outstanding balances carry interest at 5% a year until they are repaid.
Can I still get part of my CEBA loan forgiven?
No. Partial forgiveness required repayment by 19 January 2024. Businesses that did not meet that date now hold an ordinary term loan with no forgivable portion.
What happens if I cannot repay by 31 December 2026?
Your lender can demand the full outstanding balance immediately, and the debt can be passed to the federal government for collection. Both are harder to deal with than arranging funding beforehand.
Can I borrow to repay a CEBA loan?
Yes. Refinancing a CEBA balance with a term loan or revenue-based funding is common. The right choice depends on how quickly you need the money and how predictable your revenue is.
How quickly can funding be arranged?
Revenue-based funding is usually decided and paid out within 24 to 48 hours. A bank term loan generally takes several weeks, so if you are reading this close to the deadline, factor that in.
Last reviewed October 2026. This page explains general funding options and is not tax, legal or insolvency advice. Confirm the position on your own loan with the financial institution that holds it.
