Over 25,000 Canadians sign petition urging CEBA loan repayment extension to late 2025
The Canada Emergency Business Account (CEBA) loan repayment deadline has arrived, but tens of thousands of Canadians are urging for an extension as small businesses struggle to repay it.
As of Thursday, over 25,000 people have signed a petition calling to extend the CEBA loan repayment deadline to December 31, 2025.
“Many businesses are still grappling with the lingering effects of the pandemic, and the road to recovery has proven to be more prolonged and more arduous than initially anticipated,” reads the petition started by Malik Yasir Awan.
“By granting an extension, businesses will have the necessary time to rebuild and regain financial stability, ensuring long-term survival.”
Extend the CEBA Loan Repayment Deadline to Dec 31,2025 – Sign the Petition! https://t.co/HTGCYpg7wV via @CdnChange
— Andy Sahadeo (@andysahadeoAMFF) January 18, 2024
The government introduced the program 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, according to the government.
As of May 31, 2023, only 21% of those businesses had fully repaid their CEBA loan, according to federal statistics.
The petition also urges the government to consider how the interest rate hikes last year contributed to “exacerbating the financial burdens” small businesses already faced due to the pandemic.
Many small business owners shared their stories in the petition’s comments.
“I will go bankrupt if I have to pay on the 18th and will need to fire 6 people,” commented Lukas Ostrowski from London, Ontario.
“Without the extension my small business will go bankrupt and so will others I know,” added Johanus Haidner from Edmonton.
Myles McFayden from Pembroke, Ontario, commented that “it’s time our government puts people’s well being ahead of their balance sheets!”
These Canadians aren’t the only ones calling for an extension.
Last week the NDP and business advocates made a last-ditch effort asking the government to forgive CEBA loan repayments.
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.
“Following many conversations with government, I’m convinced there won’t be any last-minute extension to the current January 18 deadline,” said 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 to $20,000 forgivable portion.”
In September, the government extended the CEBA 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 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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