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The Best Way to Pay Back Your CEBA Loan

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In 2019, to provide some relief, the Canadian government introduced the Canada Emergency Business Account (CEBA) loan program.  This program was designed to assist small businesses across Canada that needed a (financial) hand. due to the COVID-19 pandemic. The CEBA loan provided small businesses and nonprofits with a $40,000 line of credit, of which $10,000 was forgivable if certain conditions were met. Later, the CEBA program expanded to $60,000 in an interest-free loan. CEBA loan holders who had received the $40,000 CEBA loan were able to apply for the CEBA expansion.

When Is the Repayment Deadline for CEBA?

The latest information about the CEBA deadline is that the CEBA loan repayment date has been extended to January 18, 2024, for loan holders who qualify. Loan holders that do no not qualify must repay the outstanding amount by December 31, 2023.

How to Pay Back Your CEBA Loan

With the CEBA repayment deadline approaching, many businesses are asking how to repay the CEBA loan. The easiest way is to repay through your financial institution for instructions on how to make payments towards the loan. Many financial institutions are offering the following methods to loan holders:

  • Mobile app
  • Website
  • In-person 

Please remember that part of your loan can be forgiven. 33 percent, or up to $20,000, can be forgiven on an outstanding CEBA loan of $60,000. 25 percent, or up to $10,000, can be forgiven in an amount up to $10,000.

Of course, your business must be in good standing with the Canada Revenue Agency (CRA) to qualify for forgiveness. Additionally, you must repay a portion of the loan before the deadline.

What If You Cannot Payback Your CEBA Loan?

If you cannot return your CEBA loan, don’t panic. You have two options:

  • Option 1: If you can’t repay your CEBA loan, the government will convert it to a 2-year term loan at 5 percent interest per annum loan. This translates to $6,150 in interest on $60,000 CEBA principal as an example.
  • Option 2: The better option is to use Levr.ai and borrow the minimum amount required to pay back your CEBA loan and still be eligible for loan forgiveness value. Think of this forgiveness as a discount or free money—because it is!

Advantages of Working with Levr.ai to Repay Your Ceba Loan

Spoiler alert – this is the best and most cost-effective way to pay back your CEBA loan by the Jan 18, 2024 deadline.

If you are unable to repay your CEBA loan, consider matching with a certified lender through Levr.ai to qualify for a loan that allows you to repay CEBA and qualify for loan forgiveness savings to offset any interest payments to organize the pay back funds.

Here is an example from  CEBA tips page:

“If you borrowed the full $60,000 and you’re in good standing with the CRA. This means if you pay back $40,000 on or before the Jan 18, 2024 deadline you’ll receive $20,000 of forgiveness.

Before the deadline you work with a certified lender to borrow $40,000 and get the max of $20,000 in loan forgiveness. This new $40,000 loan at 18 percent interest (per annum) over 2-years (say with a monthly payment of $1,997) will cost you $7,927 in interest. If you take $20,000 less the cost of borrowing for additional 2-years you still are up $12,073. Paying a total of $47,927 for $60,000 in funding.”

Can Small Businesses Still Apply for CEBA Loans?

No. The application period for CEBA loans ended on June 30, 2021. No more applications can be submitted, and no new funding is offered.

However, other Canadian small business loan options are available to you through Levr.ai. For example, term loans provide businesses with a lump sum that is repaid over a specified period, often with fixed interest rates.

Equipment financing, on the other hand, allows businesses to purchase or lease equipment needed for their operations.

Meanwhile, lines of credit provide businesses with access to a predetermined amount of funds that can be drawn upon as needed. Explore our website today to learn more about the different types of small business loans available to you. Please have your essential documents handy, such as financial statements, for the application.

Strategies to Pay Back a Business Loan Effectively

It’s not unusual for businesses to find it challenging to meet their loan repayment obligations due to unforeseen circumstances or unexpected changes in their business environment. As mentioned, working with Levr.ai to repay a CEBA loan is an excellent option.

But what about other types of loans? A benefit of small business loans is that they can offer some repayment flexibility.


By negotiating new terms, such as lower interest rates or longer repayment periods, you can alleviate financial strain and make your loan more manageable.

Loan Restructuring

Loan restructuring may involve adjusting the repayment schedule, deferring payments, or even forgiving a portion of the loan in certain cases.

Debt Consolidation

If you have multiple loans with varying interest rates and repayment terms, consolidating your debts into a single loan can simplify your finances and potentially reduce your overall monthly payments.

It’s also a good idea to manage your cash flow to repay your loan. Here are three tips that may help.

  1. Monitor your accounts receivable: Stay on top of outstanding payments from customers and implement effective credit control measures to minimize late or unpaid invoices.
  2. Reduce unnecessary expenses: Regularly review your expenses to identify areas where you can cut costs without compromising the quality of your products or services.
  3. Create a cash flow forecast: Develop a realistic cash flow forecast to anticipate potential cash shortages and take proactive measures to address them.

Effective Loan Repayment Strategies

CEBA loans provided a lifeline for small businesses struggling during these challenging times. With the repayment date around the corner, there are options with Levr.ai that can help your business repay the loan and capitalize on the loan forgiveness offer.

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