by MorinvilleNews.com Staff
The Canadian Federation of Independent Business (CFIB) is once again calling on the federal government to extend its deadline to repay the Canada Emergency Business Account (CEBA) loans issued during the pandemic. The deadline for the repayment of the $40,000 to $60,000 loans and retain the forgivable portion is on Jan. 18, just over 60 days from now.
CFIB data from its membership indicates 87 per cent of small businesses that took on a CEBA loan sa thyey need a further extension to the end of 2024.
“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.”
Statistics Canada data cited by CFIB indicates the COVID-19 pandemic shuttered more Canadian businesses than the 2008/2009 financial crisis. This past July saw the lowest level on record of new business openings, according to Statistics Canada’s latest monthly estimates.
“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,” Pohlmann added.
CFIB has received more than 50,000 signed petitions from small business owners across the country calling on Ottawa to extend the deadline to Dec. 31, 2024. All 13 Canadian premiers also recently sent a letter to Ottawa calling for an extension.
“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.