TORONTO, Aug. 30, 2023 /CNW/ – The Canadian Federation of Independent Business (CFIB) welcomes the support of the New Democratic Party, the Bloc Québécois and the Green Party on the need to extend the current Canada Emergency Business Account (CEBA) repayment deadline.
Only four months are left until the CEBA repayment is due on Dec. 31, 2023. If the CEBA loan is not repaid by then, small business owners will lose the up to $20,000 forgivable portion and begin paying interest on a much larger loan balance.
“Thousands of small business owners tell us they won’t be able to outrun their COVID debt by the end of December. We’re not asking for total forgiveness, just more time for small businesses to get back on their feet,” said Dan Kelly, CFIB president. “While many Conservative and Liberal Party Members of Parliament have shared their private support, their leadership has been silent on the need for CEBA changes. We need a decision now.”
Nearly 14,000 business owners have signed CFIB’s petition calling for an extension in the last few months. In total, over 35,000 businesses have signed the petition calling for improvements to pandemic supports, including the need to extend CEBA loans, since it was introduced.
CFIB is pushing the federal government to extend the repayment deadline for the CEBA loan to the end of December 2025 or at least 2024. CFIB’s research shows that 19% of all small businesses in Canada—or nearly 250,000 small businesses—could close their doors next year unless the federal government changes the deadline.
“Small businesses provide significant value to their local communities. Two-thirds — or 66 cents — of every dollar spent at a small business is reinvested locally, while only 11 cents spent at a multinational retailer stay local. Small businesses are an ecosystem: when you’re supporting one, you’re supporting many,” said Corinne Pohlmann, Executive Vice-President at CFIB. “This is not the time for hesitation. Government must act now or risk serious consequences for affected businesses, their employees and the wider economy.”
Business owners can sign CFIB’s petition to extend the repayment deadline here.
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
SOURCE Canadian Federation of Independent Business