Pandemic business loan program lacked 'value for money': auditor general

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The Canada Emergency Business Account program lent 898,000 small businesses $49.1 billion to help cover expenses such as rent and payroll during the pandemic.

OTTAWA — The small business loan program the federal government rolled out during the COVID-19 pandemic wasn't managed with "due regard for value for money," auditor general Karen Hogan said Monday.

At the same time, it says the federal government didn't provide effective oversight to ensure the program was cost-effective.Hogan told reporters she is "concerned that EDC only partially agreed with our recommendation that it should carry out additional work to identify all ineligible recipients and recover the amounts involved."

"The initial contract awarded for the call centre was expected to last four months and cost $2.78 million. However, as of March 31, 2024, the call centre was still operating with a cumulative total cost of approximately $23.2 million," the report outlines.

 

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