Canada’s premiers have written an open letter to the prime minister asking the federal government to extend the loan repayment deadline for small businesses.
Many small businesses are anxious about their ability to pay back their federal Canada Emergency Business Account (CEBA) loans by the Jan. 18 deadline to qualify for partial loan forgiveness, says the letter signed by B.C. Premier David Eby and 12 other premiers.
“The same loan that was once a lifeline during the pandemic is now threatening to sink the small businesses that are only just getting by,” says the Oct. 20 letter. “We are urging your government to provide additional time to allow businesses to take advantage of the loan forgiveness option in addition to extending repayment of CEBA loans for another year.”
A total of $49.2 billion in CEBA loans to small businesses and not-for-profits was approved during the pandemic.
The letter cites the rising cost of housing, groceries, as well as rising inflation and interest rates, saying “now is not the time to force additional costs on small businesses.”
The Canadian Chamber of Commerce, the Greater Victoria Chamber of Commerce and other partners, including a coalition of industry associations, have also called on the federal government to extend the deadline for small businesses to repay CEBA loans.
A letter in July asked Finance Minister Chrystia Freeland to push back the repayment deadline to the end of 2025 — or at least by one year — while allowing businesses to still qualify to have up to one-third of their loans forgiven.
Small businesses employ more than half of all British Columbians, according to the Greater Victoria Chamber of Commerce.
A lot of organizations are still fighting for survival and there is a real risk they could fail and never repay their loan, said Chamber CEO Bruce Williams in a statement last month.
“These are businesses that stayed open through the pandemic, kept people employed, and planned for better days,” he said. “Unfortunately, they’re now facing a new struggle against rising costs and a challenging financing environment.”
