CEBA loan repayment deadline extension doesn’t go far enough: CFIB

Canadian businesses who took out federal pandemic loans will have some more time to pay them back — but there’s a catch.

A small business could apply for up to $60,000 through the Canada Emergency Business Account (CEBA) program, and up to $20,000 would be forgiven if paid back by a certain date.

The federal government announced on Thursday that date has now been extended by a few weeks, from Dec. 31, 2023 to Jan. 18, 2024. For businesses unable to make that, they will have until the end of 2026 to pay the loan back with interest.

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Today we announced our plan to:
Get more rental homes built by removing the GST on the construction of new apartment buildings
Extend the Canada Emergency Business Account term loan repayment deadline &
Ensure grocery chains come forward with a plan to stabilize prices.

— Chrystia Freeland (@cafreeland) September 14, 2023

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The announcement came more than a month after business groups from coast to coast to coast pushed for more time, claiming a quarter of a million companies were at risk of closure.

However, the extensions aren’t being applauded by everyone. The Canadian Federation of Independent Business says it’s disappointed and that the government “has failed to address the most critical issue on outstanding CEBA loans.”

That issue, the CFIB says, is the loss of the forgivable portion of the loan for those who aren’t able to make the new Jan. 18 deadline.

“The extension of the forgivable deadline by a few weeks will be of very little value to the thousands of small business owners who just don’t have money to repay now,” the organization said.

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Related articles: 

• Canadian small businesses push for CEBA repayment extension

• Struggling B.C. restaurants face COVID-19 debt repayment deadline

• Canadian Chamber of Commerce joins calls for extension of CEBA repayment deadline

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The CFIB says while the additional year for the full repayment “is helpful,” the plan doesn’t go far enough to support businesses that continue to struggle.

“Earlier CFIB data found that losing the forgivable portion puts at jeopardy the future of up to 250,000 small businesses,” the CFIB said.

“We need a redo of this announcement and CFIB’s advocacy work will continue to push for more time to repay the loan while protecting the forgivable portion.”

According to the organization, 69 per cent of businesses who got the CEBA loan haven’t been able to repay any of it yet. The number of businesses that have repaid the loan in full as of this month was 18 per cent, the CFIB adds.

Meanwhile, the CFIB says its petition to extend the repayment deadline has more than 40,000 signatures from small business owners across Canada.