Making Sense of CEBA Refinancing Options

The Canada Emergency Business Account (CEBA) has been a vital source of financial relief for businesses during the COVID-19 pandemic. As economic conditions continue to evolve, many businesses are exploring CEBA refinancing options to adapt to their changing financial needs. In this blog, we will take a closer look at CEBA refinancing, what it entails, and how businesses can make sense of the available options.

I. Understanding CEBA Loan Refinancing

CEBA loan refinancing is a process that allows businesses to adjust the terms of their existing CEBA loans. It aims to provide businesses with more flexibility in managing their financial obligations during these challenging times.

II. Who Can Benefit from CEBA Refinancing?

CEBA refinancing is available to various types of businesses, including:

Small Businesses: 

Small enterprises that have been significantly impacted by the pandemic can benefit from CEBA refinancing. This category includes various businesses in sectors like retail, hospitality, and services.

Sole Proprietors: 

Sole proprietors operating businesses are eligible for CEBA refinancing. They are individuals who run businesses without incorporating a separate legal entity.


Partnerships, where two or more entities jointly operate a business, can access CEBA refinancing options.


Incorporated businesses, regardless of their size, can also benefit from CEBA loan refinancing.

Nonprofit Organizations: 

Eligible nonprofit organizations, such as charities and public service entities, can take advantage of CEBA refinancing.

III. Key Steps in CEBA Refinancing

The process of refinancing a CEBA loan typically involves several key steps:

Contact Your Financial Institution: 

Initiate the refinancing process by reaching out to your financial institution, the same one with which you hold an active business account. Most Canadian financial institutions are participating in the CEBA program.

Application Review: 

Your financial institution will review your current CEBA loan and assess your financial situation. Based on their evaluation, they will recommend refinancing options that best suit your needs.

Customized Solutions: 

Financial institutions often offer customized solutions tailored to your specific financial situation. These can include extending the repayment period, adjusting interest rates, or modifying the repayment schedule.

Eligibility Confirmation: 

Your financial institution will confirm your eligibility for CEBA refinancing. They will guide you through the application process and provide you with all the necessary information.

Document Submission: 

You might be required to submit specific documents or financial statements to support your refinancing application. Make sure to provide accurate and complete documentation to expedite the process.

Loan Amendment: 

Upon approval, your financial institution will amend the terms of your existing CEBA loan according to the refinancing options you’ve selected. This can involve changes in repayment schedules, interest rates, or extended repayment periods.

Loan Forgiveness Consideration: 

Before proceeding with refinancing, consider whether you’ve made significant repayments towards your CEBA loan, as this could affect your eligibility for loan forgiveness.

IV. What Businesses Should Consider

When contemplating CEBA refinancing options, businesses should carefully consider the following factors:

Interest Rates: 

Compare the interest rates associated with your current CEBA loan and the refinancing options. Lower interest rates can significantly reduce the overall cost of borrowing.

Loan Terms: 

Examine the terms and conditions of the refinanced loan. Longer repayment periods can reduce monthly payments but may result in higher overall interest costs.

Loan Forgiveness: 

If you’re close to meeting the conditions for CEBA loan forgiveness (e.g., repaying 75% of the loan), think carefully before refinancing, as it might impact your eligibility for loan forgiveness.

Eligibility Criteria: 

Ensure you meet the eligibility criteria for any refinancing options or government relief programs you’re considering. Ineligible businesses may face repayment obligations.


Assess your business’s creditworthiness, as it can influence the interest rates and terms you’re offered when seeking traditional bank loans or other financing.

Total Borrowing Costs: 

Calculate the total borrowing costs for each option, including both principal and interest. This will give you a clear picture of the financial impact of each choice.


Evaluate how flexible each option is in terms of repayment schedules, collateral requirements, and other terms that can affect your business’s ability to meet its financial obligations.

V. Seek Professional Advice

Given the significance of the decision to refinance your CEBA loan or explore alternative financing options, it’s advisable to seek professional advice. Financial advisors, accountants, and business consultants can provide insights tailored to your specific situation and help you make well-informed choices.


CEBA loan refinancing offers valuable flexibility to businesses facing financial challenges in the wake of the COVID-19 pandemic. It allows eligible businesses to adapt their repayment terms, interest rates, and schedules to better align with their financial capabilities.

Whether you are a small business, a sole proprietor, a partnership, a corporation, or a nonprofit organization, understanding the available CEBA refinancing options is crucial. By following the steps outlined by your financial institution and carefully considering factors like interest rates, loan terms, loan forgiveness, eligibility criteria, creditworthiness, total borrowing costs, and flexibility, you can make informed decisions that align with your business’s financial goals.

With the support of financial institutions and professional guidance, businesses can navigate these challenging times, make wise financial decisions, and emerge with greater resilience and financial stability. CEBA refinancing is a tool that can empower businesses to face the uncertain economic landscape with confidence.

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