Premiers ask federal government for COVID-19 small business loan extension

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VICTORIA — Up to 250,000 small businesses across Canada face uncertain futures if the federal government continues with its repayment options for a COVID-19 loan program, says Dan Kelly, president of Canadian Federation of Independent Business.

Kelly applauded a joint letter sent Friday to Prime Minister Justin Trudeau from Canada's premiers asking the federal government to extend the repayment period for a year for interest-free loans given to small businesses and non-profits during the pandemic.

The federal government's Canada Emergency Business Account offered interest-free loans to small businesses during the COVID-19 pandemic, which included a $20,000 forgivable portion if the loan was repaid within a set time period, which has now been extended to Jan. 18, 2024. "That’s why I’m joining other premiers in asking the federal government to give small businesses a chance to recover with more time to qualify for loan forgiveness and by extending CEBA loan repayments for another year," B.C. Premier David Eby said in a statement sent out with the letter to media.

"The CEBA program, which delivered over $49 billion to nearly 900,000 small businesses and non-profits across the country, was an essential part of the federal government’s swift response to the COVID-19 pandemic," she said. "The additional flexibility that we announced is significant support for small businesses who might still be struggling to make ends meet."

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