Looking for the $40,000 government business loan? Here's what's available now
The CEBA program closed years ago, and remaining balances come due at the end of 2026. Here's what government-backed and private options Canadian businesses can actually use today.
Many owners still search for the "$40,000 government loan." That was the Canada Emergency Business Account, or CEBA, a pandemic program. It's no longer available, but there are real options to know about, both government-backed and private.
What CEBA was
CEBA offered interest-free loans to small businesses during COVID-19, starting at up to $40,000 and later raised to up to $60,000, with part of the loan forgiven if it was repaid on time. The program closed to new applications on June 30, 2021. The deadline to repay and receive partial forgiveness was January 18, 2024.
Still carrying a CEBA balance?
Loans that weren't repaid by the forgiveness deadline became term loans at 5% interest, starting January 19, 2024, with the full principal due on December 31, 2026. If you still owe, plan for that payment now. Lenders reviewing a new application will see the balance and the due date. Depending on your file, a new loan may be able to pay it off as part of the deal. Talk to your advisor and your current lender early, not in late December.
Government-backed options that exist today
- The Canada Small Business Financing Program. Loans through banks and credit unions for equipment, leasehold improvements, property and working capital, with the government guaranteeing much of the loan to the lender. Here's how the CSBFP works and who qualifies.
- BDC. The Business Development Bank of Canada lends to businesses in most industries, often alongside other lenders.
- Futurpreneur. Loans and mentoring for young entrepreneurs starting or buying a business.
- Regional development agencies. Federal agencies such as FedDev Ontario, PrairiesCan and PacifiCan fund specific projects, usually tied to growth, innovation or regional priorities rather than general working capital.
What about grants?
Grants exist, but they're almost always tied to a specific activity: hiring, training, research and development, exporting or adopting new technology. They rarely cover day-to-day expenses or equipment for an established business, and they can take months. Be wary of anyone who charges an upfront fee to "secure" a government loan or grant for you.
When private financing fits better
If you need funds in weeks rather than months, or your file doesn't fit a bank's criteria, private lenders offer term loans, equipment financing and lines of credit based largely on your recent revenue. If your bank has already declined you, start with what to do next.
Straightline works with established businesses, incorporated at least a year with $20,000 or more in monthly revenue. One application gets you an advisor who can tell you whether a government-backed loan or a private option fits your timeline better.
This guide is general information, not financial, tax or legal advice. Programs, rules and rates change, so confirm details for your situation with a qualified professional.