The federal government has been under immense pressure from a number of business advocacy groups to extend the deadline to repay loans granted through the Canada Emergency Business Account program.
Prime Minister Justin Trudeau says his government is extending the repayment deadline for its small business pandemic loan program by one year. The Canada Emergency Business Account was introduced at the height of the pandemic to help out small businesses forced to close or limit their operations due to public health measures. The program offered interest-free loans backed by the federal government.
Any business that hasn't paid back the unforgivable portion of its loan by the deadline is required to repay the entire loan. The remainder of the loan also starts accruing interest after the deadline passes.