In July, the Manitoba Chambers of Commerce teamed up with the Canadian Chamber of Commerce and industry associations nationwide to urge the federal government to extend the current Canada Emergency Business Account (CEBA) repayment deadline by two years to the end of 2025, or at least by one year, while maintaining access to the forgivable portion.
Almost 900,000 CEBA loans were approved across Canada during the height of the COVID-19 pandemic. Many businesses had no choice but to take on this loan due to circumstances beyond their control. Mandatory business closures and other government health restrictions left businesses with severe income losses and cash flow issues.
Despite their best efforts, high interest rates, inflation and increased labour costs have made it difficult for small-and-medium size businesses to keep their heads above water, let alone make any dent in the debt many had to take on to survive pandemic restrictions. Businesses unable to repay their CEBA loan by the December 31, 2023 deadline risked losing access to the forgivable portion of up to $20,000, which would have further increased their debt load.
Last week, the Government of Canada heeded our calls for action and announced extended deadlines for CEBA loan repayments, providing an additional year for term loan repayment, and additional flexibilities for loan holders looking to benefit from partial loan forgiveness of up to 33 per cent.
Last week’s announcement was a step in the right direction in support of Manitoba’s business community who, during the most challenging times, demonstrated resilience and resolve. While businesses appreciate the extension, those hardest hit will continue to face challenges over the next coming weeks and months, given the shorter-than-expected extension to the interest-free repayment period. It will be incumbent upon government to continue to support small-and-medium size businesses and to give them the stability they need to get back on their feet on a path to prosperity.
To learn more, please visit the Government of Canada’s website.
