NDP, business group call for extension of repayment deadline on pandemic small business loans

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Approximately $49B went out to about 900,000 businesses through the program. Officials say 21% of the businesses have fully repaid as of May 31, 2023

The Canadian Federation of Independent Business said nearly a fifth of small businesses are at risk of closure without another extension on the repayment of their Canada Emergency Business Account loans.But an economist is cautioning against the move, saying taxpayers shouldn’t subsidize businesses that are still struggling to pay back the loans more than three years since the pandemic hit.

“While the NDP was glad to see the government listen to calls to extend the original repayment deadline, a second extension giving Canada’s small businesses more time to get back on their feet is needed,” NDP small business critic Richard Cannings wrote to Finance Minister Chrystia Freeland on Monday.

Miles Corak, an economics professor at City University of New York, said the request for another extension should give pause to policymakers interested in promoting productivity growth. Data from Statistics Canada shows about 40,000 businesses close every month, and a similar number of businesses open.Article content

 

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NDP, business group call for extension of repayment deadline on pandemic small business loansApproximately $49B went out to about 900,000 businesses through the program. Officials say 21% of the businesses have fully repaid as of May 31, 2023
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