With the Jan. 18 deadline for small businesses to pay back CEBA loans fast approaching, the Red Deer & District Chamber of Commerce is still calling on Ottawa to extend the deadline.
The federal government’s Canada Emergency Business Account offered interest-free loans of up to $60,000 to small businesses during the COVID-19 pandemic. The repayment deadline for CEBA loans to qualify for $20,000 in loan forgiveness is Jan. 18.
The local chamber has been advocating for at least a one-year extension.
“We’re certainly concerned and also empathetic, to the small businesses that battled through COVID and are now being forced to pay back these loans right away. It’s something we don’t agree with and we think there should be more leniency. We’ll continue that fight,” said chamber CEO Scott Robinson.
He said if an extension doesn’t happen, the full impact won’t be known until after Jan. 18 and could include business closures.
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The Canadian Federation of Independent Business said of the more than 900,000 small businesses holding CEBA loans, 22 per cent are not in a position to repay at this time.
“With the increase in payroll taxes (EI and CPP) on Jan. 1, this is not a good start to 2024 for small businesses. 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 the $2.5 billion in carbon tax revenue it promised to small businesses as soon as possible,” said Corinne Pohlmann, executive vice-president of advocacy at CFIB, in a statement.
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Robinson said the federal government has not done enough to support small businesses, like providing more access to funding for innovation and business growth and development.
Support for service-related businesses has also been pretty thin, he added.
“It seems that the government is so focused on everything related to renewable and green energy strategies, everything else has kind of been left and put to the side. If you’re not a business focused on that industry in some way, shape, or form, then you’re challenged to access many of the programs.”
He encouraged businesses that are struggling to reach out to the chamber which will try and connect them with solutions if it’s possible.
“We certainly want to support the business community as best we can.”
— with files from The Canadian Press
szielinski@reddeeradvocate.com
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