All 13 provincial and territorial premiers sign joint letter to feds on behalf of small businesses
The Premiers of every province and territory in Canada sent a joint letter to Prime Minister Justin Trudeau today, asking that the repayment period for CEBA loans given to small businesses during the pandemic be extended for a year.
The Canada Emergency Business Account gave small business owners and non-profits access to interest-free loans of up to $60,000. The program approved loans in total of $49.2 billion during the pandemic.
The letter cites the difficult economic circumstances Canadians have faced since the onset of the pandemic. It notes the high rents and mortgage costs many are dealing with, as well as the overarching issue of inflation. It notes that small businesses are facing the same issues that many individual Canadians are dealing with.
“We are urging your government to provide additional time to allow businesses to take advantage of the loan forgiveness option in addition to extending repayment of CEBA loans for another year,” part of the letter reads. “More time is needed to allow the hardest hit small businesses to continue their recovery from not only the pandemic, but the cost shocks that came after.”
In a statement emailed to WP the Canadian Federation of Independent Businesses expressed gratitude to the Premiers for their letter.
“After the disappointing and misleading announcement from the federal government on extending CEBA loans, CFIB and small business owners from across the country have put massive pressure, including nearly 50,000 petitions from small business owners, on Ottawa to reconsider its approach,” part of the CIFB statement reads. “Ottawa’s announcement of a one-year extension to the CEBA loan deadline did not apply to the most immediate and critical deadline small businesses are facing. In less than three months, small business owners will lose the forgivable portion of the CEBA loan unless they have the money to repay by January 18, 2024. This will increase their total debt by up to 50%.”
Premiers Andrew Furey of Newfoundland and Labrador and Doug Ford of Ontario had previously asked the Bank of Canada to consider the impact rate increases were having on housing costs.
