Small businesses that took out a Canada Emergency Business Account (CEBA) loan have just over 60 days to repay the loan while securing the forgivable portion of up to $20,000, and many are worried they won’t be able to meet the January 18, 2024, deadline, according to the Canadian Federation of Independent Business.
If government doesn’t extend the repayment deadline, there will be significant consequences to the whole Canadian economy, warned the CFIB, adding that 87% of small businesses that took on a CEBA loan said they need a further extension to the end of 2024.
Corinne Pohlmann
“Extending the forgivable deadline until the end of 2024 would be a key step in alleviating some of the cost pressures facing small businesses,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB. “If businesses fail—and according to our estimates, up to 250,000 small firms may close doors if they lose out on the forgivable portion—there will be a ripple effect on the whole Canadian economy.
“With small businesses contributing over half of Canada’s GDP, we worry this situation will become worse if the CEBA forgivable deadline is not extended. We’re already seeing a wave of business closures and fewer people wanting to become entrepreneurs.”
The CFIB said recent Statistics Canada data showed that the COVID-19 pandemic caused more business closures in one year than the 2008/2009 financial crisis. The number of new business openings in July also reached its lowest level on record, according to Statistics Canada’s latest monthly estimates.
CFIB said it has been pushing hard on behalf of small businesses to extend the CEBA forgivable deadline from January 18, 2024, to Dec. 31, 2024. It has over 50,000 signed petitions from small business owners across the country calling on Ottawa for more time. All 13 Canadian premiers also recently sent a letter to Ottawa, joining the growing calls for an extension.
Jasmin Guénette
“Finding enough funds to repay the loan in two months is a herculean task for many small business owners right now. Time is slipping away and they’re trying to figure out how they will be able to repay the loan while they’re reeling from inflationary cost pressures and low levels of sales,” said Jasmin Guenette, Vice-President of National Affairs at CFIB. “There’s still a chance to show Ottawa is listening to the urgent concerns of Canada’s small businesses by extending the forgivable deadline to the end of 2024.”
Business owners can visit CFIB’s website for more information on CEBA and their financing options.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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