The Liberals have decided, after consistent calls from businesses, to give them another year to pay back their Canada Emergency Business Account loans, despite previously taking the position that repayment deadlines were "final and cannot be changed."Groups across Canada representing hundreds of thousands of small businesses have been pleading with the federal government to grant them an extension.
Offering initially up to $40,000 to small businesses and non-profits that have experienced a loss of revenue due to COVID-19, an expansion was then granted, seeing businesses able to apply to receive up to $60,000 interest-free loans.98,271 businesses, totalling $49.2 billionIn January 2022, in the wake of the Omicron variant surge and new restrictions, the Liberals announced they would beto the end of 2023. This meant that eligible businesses "in good standing" would have until Dec.
When the initial extension was announced, the government said outstanding loans after the 2023 deadline would be converted to two-year term loans with a five per cent interest rate, starting on Jan. 1, 2024, with the loans due in full by Dec. 31, 2025. The local chambers of commerce, tourism and industry groups that have been imploring the government to grant this loan repayment leniency made the case that while the government gave business in crisis a lifeline with these loans. Years later, many still are treading water in their post-pandemic recoveries.
This has left many unable to make much more than a dent in the debt they've taken on, in the face of supply chain and hiring woes, as well as high inflation. Without the extension, many local businesses—particularly in the tourism sector—were facing the prospect of closing their doors for good.