NDP and business advocates urge for forgiveness as CEBA loan repayment deadline looms
The NDP and business advocates are making a last-ditch effort urging the federal government to forgive the Canada Emergency Business Account (CEBA) loan repayment as the deadline looms.
There’s only one week left for small businesses and non-profits to submit their CEBA loan repayment on January 18.
The program was introduced by the government in April 2020 during the COVID-19 lockdowns. It offered interest-free loans of up to $60,000 to small businesses and not-for-profits.
Nearly 900,000 small businesses and non-profits in Canada received a lifeline from CEBA, with a total of $49.2 billion being paid out,Ā according to the government.
The Canadian Federation of Independent Business (CFIB) warns that it’s highly unlikely Ottawa will provide small businesses more time to repay their loan in order to keep the forgivable portion.
With one week left until the #CEBA repayment deadline on Jan. 18, itās highly unlikely the federal government will provide #smallbiz more time to repay their loan in order to keep the forgivable portion, warns #CFIB.
Learn More: https://t.co/Dme2pdrnDv
ā CFIB News (@CFIBNews) January 11, 2024
“Following many conversations with government, I’m convinced there won’t be any last-minute extension to the currentĀ January 18Ā deadline,” saidĀ Dan Kelly, CFIB president, in a statement on Thursday.
“For business owners who remain eligible, now is the time to repay if you possibly can. There’s only one week left to repay the loan while securing the up toĀ $20,000 forgivable portion.”
In September, the government extended theĀ CEBAĀ loan repayment deadline from December 31, 2023, to January 18, 2024.
Despite the extension, Kelly estimates that 22% of the 900,000 small businesses still won’t be in a position to repay their CEBA loans, which will have “huge implications for Canada’s economy.”
The CFIB says it continues to push the government for a three-year repayment plan for those deemed ineligible and a fresh process to review files with minor errors like an incorrect business number.
It also calls on Ottawa to ensure those businesses that have just learned they are ineligible don’t lose out on the forgivable portion of the loan if they are, in fact, eligible.
“This is not a good start to 2024 for small businesses,” saidĀ Corinne Pohlmann, executive vice president of advocacy at CFIB.
“This is all the more reason for Ottawa to reduce the cost of doing business and alleviate some of the cost pressures facing small firms. The federal government can start by returning theĀ $2.5 billion in carbon tax revenue it promised to small businesses as soon as possible.”
The NDP is following suit and urging the Liberal government to extend CEBA loan repayment and forgiveness deadline.
The party cites a recent report that revealed that 4,000 Canadian restaurants could shut down without an extension on their CEBA loan repayment.
Over the last year, the New Democrats have been pushing for a year-long extension, writing to the minister of finance twice to ask for relief for small businesses, as well as introducing a private memberās motion to extend the loan forgiveness deadline to the end of 2024.
āThe move to let businesses fend for themselves just shows how out of touch the Liberals are with ordinary Canadians,ā said NDP Leader Jagmeet Singh in a statement. āItās time for a government that helps people, local businesses, and their communities ā not one that favours the ultra-rich.ā
Many Canadians are also on board for CEBA loan repayment forgiveness. Last November, tens of thousands of Canadians signed a petition calling for it. As of Thursday, that same petition has over 17,000 signatures.
In the meantime, the CFIB says it has been flooded with calls from panicked small business owners who are struggling to repay their loans.
It lists key things CEBA loan repayment holders need to know here.
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