Over 14,000 Canadians sign petition urging for CEBA loan repayment forgiveness
Canadians are urging the federal government to forgive CEBA loan repayments, as many small businesses struggle to repay the money before the deadline.
Over 14,000 people have signed a petition calling for CEBA loan repayment forgiveness. It was started by Moe Tabesh, an accountant based in Ottawa who works with small businesses.
“As a business consultant, I have witnessed firsthand the struggles of my clients who have borrowed funds through the Canada Emergency Business Account (CEBA) to keep their businesses afloat amidst the economic turmoil caused by the pandemic,” the petition reads.
“These are hardworking individuals who contribute significantly to our economy, yet they find themselves unable to repay these loans due to continued financial hardship.”
Please sign this petition if you believe in standing up for small business owners during these challenging times.
Sign the petition here: https://t.co/CvOrg1jdRP
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.#CEBA #CEBALoan #Entrepreneur #BusinessOwners pic.twitter.com/GUxrjdAmmn— Accounting Wizard (@MoeTabesh) November 8, 2023
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, according to the government.
As of May 31, only 21% of those businesses had fully repaid their CEBA loan, according to federal statistics.
In September, the government extended the CEBA loan repayment deadline from December 31, 2023, to January 18, 2024.
However, Tabesh says it’s become clear that many businesses are still struggling and may not be able to repay these loans.
“We must remember that behind every business there is a person or family whose livelihood depends on its success,” reads the petition.
“The inability to repay these loans can lead not only to financial ruin but also immense personal stress and anxiety.”
According to a recent survey by the Canadian Federation Of Independent Business (CFIB), the 18-day extension isn’t enough for its members.
More than half (61%) of its members said they’d have to resort to additional loans from their banks to meet the CEBA loan repayment deadline.
Another 19% said they’d consider using home equity to pay off the loan on time.
“We call upon our government representatives and relevant authorities for compassion and understanding in this matter,” reads the petition.
“By doing so, we can help ensure that our local economies remain vibrant while supporting those entrepreneurs who have been hit hardest by this crisis.”
Many small business owners shared their stories in the petition’s comments.
“I am a small business owner and struggling to pay it back,” wrote one person.
“At this tough time when interest rates are that high and inflation is at its peak, it is impossible to repay CEBA,” reads another comment.
There were those who opposed the petition.
Several commenters claim the loan has “contributed to inflation” and that small businesses were “lying to the government.”
Tabesh says throwing accusations around like this is not appropriate.
“If anyone knows that abuse took place, they should report it,” he told Daily Hive in an email.
“While most Canadians received over 20K in [Canada Emergency Response Benefit payments], no one complained. In addition, no one had to pay it back, it was a windfall,” he added. “Why were small businesses not given this option?”
Tabesh also stressed that small businesses had to use loan payments to fit their stores with COVID-19 safety precautions like plexiglass and sanitizers.
“[They] managed to stay open and also face the risk of getting sick,” he said.
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