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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.

A spokeswoman for federal Finance Minister Chrystia Freeland said in a statement that the federal government has implemented several repayment options, including an extension last month on the Dec. 31, 2023 eligibility period. Federal Small Business Minister Rechie Valdez told business leaders at a public meeting Thursday in Toronto that she is aware that some businesses were hit harder than others during the pandemic.

The federal New Democrats said in a statement they support the premiers' call for relief for small businesses.

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