Can You Defer Your CEBA Repayment Terms? Everything You Need to Know

If you’re a small business owner, you’ve probably heard about the Canadian Emergency Business Account (CEBA) loan program. This program was created to support small businesses affected by the COVID-19 pandemic, and it has provided loans of up to $60,000 to eligible businesses. However, many small business owners who took out a CEBA loan are now wondering if they can defer their repayment terms. In this blog post, we will discuss everything you need to know about CEBA loan repayment, including whether or not you can defer your payments.

CEBA loans are interest-free until December 31, 2022, and if you meet certain conditions, you can have 33% of the loan forgiven. However, you are required to begin making payments on your loan as early as January 1, 2023. This means that if you took out a $40,000 CEBA loan, you would have to make monthly payments of $1,111.11 for three years, beginning in 2023.

The good news is that if you’re struggling to make those payments, you do have a few options. One option is to apply for CEBA loan refinancing. Refinancing allows you to extend the repayment period beyond three years, which can lower your monthly payments. However, it’s important to note that refinancing means you’ll end up paying more in interest over the long run.

Another option is to request a deferral of CEBA loan payments. According to the Government of Canada, CEBA loan deferrals are possible under certain circumstances. For example, if your business has been impacted by a natural disaster, you may be able to defer your CEBA loan payments. It’s important to note that deferring your payments will not cancel or forgive your loan, but it can give you some additional breathing room to manage your finances.

To request a deferral of your CEBA loan payments, you will need to contact your financial institution directly. The Government of Canada has instructed financial institutions to work with their clients to make appropriate arrangements for CEBA loans, including possible deferral of payments. However, it’s important to note that deferring your CEBA loan payments may affect your credit score, so it’s important to consider this option carefully.

If you’re unable to make your CEBA loan payments, it’s important to take action as soon as possible. Ignoring your loan payments can result in penalties and fees, as well as damage to your credit score. Instead, reach out to your financial institution to discuss your options. They may be able to offer you alternative payment arrangements, such as reduced payments or longer loan terms.


In conclusion, the Canadian Emergency Business Account (CEBA) loan program has been a lifeline for many small businesses struggling to survive during the COVID-19 pandemic. However, as the program comes to an end, many small business owners are understandably concerned about their repayment terms. If you’re struggling to make your monthly CEBA loan payments, you do have options. Contacting your financial institution to discuss a deferral or refinancing arrangement can help you manage your finances and avoid penalties. Whatever option you choose, the key is to take action as soon as possible to ensure the best outcome for your business.

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