CEBA loans: business leaders still have time to take action, but should not delay
Montréal, October 14, 2026 – Since the final repayment date for the Canada Emergency Business Account (CEBA) Loan is in less than three months, Raymond Chabot, a subsidiary of Raymond Chabot Grant Thornton specialized in insolvency and financial recovery, invites SME leaders to take stock of their financial situation and prepare a repayment plan for their loan due on December 31, 2026.
The CEBA Loan was a lifeline for many organizations during the pandemic. Since business leaders are still dealing with higher operating costs and an uncertain economic context, several of them have yet to pay off the balance of this financing, which became a term loan with an interest rate of 5% per annum. So far, the federal government has not announced a repayment moratorium for these loans granted during the pandemic. Even though new federal support measures for Canadian businesses impacted by tariffs were recently unveiled, the repayment terms of the CEBA Loan remain unchanged.
“In light of the current economic context, which is characterized by uncertainty and higher operating costs, an unpaid CEBA balance may be just one more roadblock. Instead of considering this debt alone, leaders would benefit from analyzing their overall financial situation before adopting a company-wide strategy. This approach allows them to prioritize their obligations, retain their liquidity and knowingly choose solutions that are best suited to their circumstances,” indicates Yannick Bourassa-Milot, Partner and Licensed Insolvency Trustee at Raymond Chabot.
A deadline that cannot be ignored
December 31, 2026 is the deadline for repaying the remaining balance on CEBA Loans. Businesses that did not reimburse their loan by January 2024 did not benefit from partial loan forgiveness and must now repay the entirety of the loan in addition to interest accrued since January 19, 2024.
Where there are outstanding balances, debt recovery measures may be taken, which could further weaken the financial situation of certain organizations.
What options are available to business owners?
Raymond Chabot recommends that business leaders start out by painting a realistic picture of their cash flows and repayment capacity for the coming months. Depending on the company’s situation, several solutions may be considered.
- If enough liquidity is available, repay the loan before the deadline to reduce interest expenses.
- Refinance or consolidate the debt with a financial institution.
- Review the company’s financial structure in order to enhance its repayment capacity.
- If debt is putting you under pressure, call on experts who can help you evaluate the options and restructuring possibilities available.
Even during difficult times, there are solutions
Business leaders who believe they may not be able to repay their loan before the end of the year should not ignore the issue or wait until it becomes critical.
“Several leaders believe they have to face their financial difficulties alone. However, there are solutions. In certain circumstances, financial restructuring or a consumer proposal could allow them to remedy the situation without disrupting their business activities,” adds Guyllaume Amiot, Senior Manager and Licensed Insolvency Trustee at Raymond Chabot.
Raymond Chabot invites business leaders to take action now and reach out to their financial advisors, banking institution or a Licensed Insolvency Trustee to evaluate the scenarios best adapted to their circumstances.
Take action now to avoid last-minute pressure
As the deadline of December 31, 2026 draws near, Raymond Chabot encourages business leaders to not underestimate the potential impact of this debt on their cash flow and expansion projects. The sooner a leader acts, the higher the chances of coming up with a solution adapted to their circumstances and maintaining their financial stability.
About Raymond Chabot
For more than 40 years, Raymond Chabot, a subsidiary of Raymond Chabot Grant Thornton, has specialized in insolvency and the financial recovery of individuals and businesses. With a team of more than 200 professionals working in some 90 offices across Quebec, New Brunswick and Ontario, it is a leading Quebec network of financial recovery advisors and Licensed Insolvency Trustees. Raymond Chabot stands out through its expertise and human approach.
Source:
Francis Letendre
Head, Communications and Public Affairs
Raymond Chabot Grant Thornton
Phone: 514-390-4201
letendre.francis@rcgt.com