Small business groups push for extension to repay outstanding CEBA loans

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Many businesses are still struggling with debt incurred during the pandemic, business groups say

Small-business groups are asking the federal government to further extend the deadline for repaying Canada Emergency Business Account loans when the budget is tabled later this month, as few of the loans have been paid back.

Olivier Bourbeau, Restaurants Canada’s vice-president of Quebec and federal affairs, said his association recently surveyed its members and found that 20 per cent of those who had not yet repaid their CEBA loans were not sure they ever could. About 30 per cent of its members reported having pandemic-related debt of more than $100,000.

Restaurants Canada has proposed the government phase out the loan forgiveness over six-month periods, so that even financially strapped businesses that can’t meet the 2023 deadline can still benefit from some forgiveness. Under that schedule, a business could still see $14,286 of a $60,000 loan forgiven if it is repaid by Dec. 31, 2024.

Dan Kelly, president of the Canadian Federation of Independent Business, which lobbies on behalf of more than 95,000 small businesses, said his feeling is that Ottawa would like to turn the page on pandemic support programs. But that ignores the fact that debt is still a live issue for many businesses.

 

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