How Do I Pay Back My CEBA Loan in 2023? The Best Ways

Canada Emergency Business Account (CEBA) loan, which was introduced in April 2020, has provided financial support to many small- and medium-sized businesses affected by the COVID-19 pandemic. CEBA has offered interest-free loans of up to $60,000 to qualifying businesses to help cover their operating expenses and ensure business continuity. While the loan comes with many benefits, it’s important to plan ahead for its repayment. In this blog post, we’ll explore the best ways to pay back your CEBA loan in 2023.

1. Use your business’s retained earnings

One of the most convenient ways to repay your CEBA loan in 2023 is by using your business’s retained earnings. Retained earnings are the profits your business has accumulated over the years that you haven’t paid out to shareholders. If your business has retained earnings, you can use them to pay back your CEBA loan without incurring additional costs. This method is particularly useful if your business is facing cash flow constraints in the next couple of years.

2. Refinance your CEBA loan

Another useful way to pay back your CEBA loan is by refinancing it. Refinancing a CEBA loan allows you to change the loan’s terms or lender. Refinancing can help you lower your interest rate, extend your repayment period, or get better loan terms. It’s important to note that refinancing may not always be the best option for everyone. You should weigh the benefits and costs of refinancing and make an informed decision.

3. Set aside your CEBA loan repayment in a savings account

If your business has the cash to repay its CEBA loan, you could set it aside in a savings account. A savings account ensures that your repayment is readily available when it’s due, without affecting your business’s cash flow. Additionally, if you’re setting aside money in a high-interest savings account, you could earn interest on the balance, which can help offset the loan’s interest costs.

4. Take advantage of the Ceba Loan Repayment Program

The Canadian government has recently introduced the CEBA Loan Repayment Program to help businesses pay back their CEBA loans. The program allows businesses to repay their CEBA loans over an extended period, without incurring any interest until December 31, 2022. After December 31, 2022, businesses can take advantage of a low interest rate of 5% up to December 31, 2025. This program aims to ease the financial burden on businesses affected by the pandemic and provide them with ample time to repay their CEBA loans.

5. Seek help from financial experts

If you’re unsure about how to repay your CEBA loan, seeking help from financial experts can be a wise decision. Financial experts can offer you personalized advice on how to manage your business’s finances and navigate the loan repayment process. They can also help you develop a repayment plan that best suits your business needs.


Paying back your CEBA loan in 2023 may seem daunting, but there are many ways to make the process manageable. Using your business’s retained earnings, refinancing, setting aside repayment funds in a savings account, taking advantage of the CEBA Loan Repayment Program, and seeking help from financial experts are all effective ways to repay your CEBA loan. By planning ahead, you can ensure that your business can continue its operations with minimal financial disruption. Stay on top of CEBA news and announcements for further aid in repayment.

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