Federal, provincial, and territorial finance ministers are meeting today
Canada’s federal, provincial, and territorial finance ministers are meeting this morning (Dec. 15) to discuss a range of challenges facing Canadian people and businesses including housing, affordability, and economic growth.
But for small businesses, it could be a last chance for the government to extend the deadline for the forgivable portion of CEBA loans, one of the most important issues facing SMEs and a key focus for the Canadian Federation of Independent Business.
Currently the deadline to repay the loan and benefit from up to $20,000 of the emergency pandemic support that is forgivable is January 18, 2024. After that businesses will also begin paying interest on the principal amount. CFIB research found that just 34% of SMEs polled have repaid their CEBA loan in full while 24% don’t think they will do so by the deadline.
But recently the 13 provincial and territorial finance ministers backed an extension of the deadline by a full year, and the CFIB is hoping their federal counterpart will agree and make an announcement today.
"Last week, Ottawa finally provided some crucial details to help businesses considering different repayment options," said Dan Kelly, President at CFIB. "While this information is helpful, it gives businesses very little time to find the best option for them. We're urging government to give businesses more time to secure the forgivable portion of the loan."
Delay tax hikes
While the CEBA loan issue is the most urgent for small businesses, there are also tax increases due in 2024 – including Employment Insurance (EI) and Canada Pension Plan (CPP) premiums rising on January 1, and the carbon and alcohol excise taxes rising on April 1.
CFIB is calling on finance ministers to delay these tax hikes.
"Canadians and small businesses are already struggling with high costs. The upcoming tax increases will further drive up the cost of doing business and cut workers' take-home income. We're calling on the federal government to make both living and doing business in Canada more affordable by pausing the upcoming tax hikes," Kelly concluded.
