Many small business owners were likely hoping for another extension this week for repaying pandemic-related business emergency loans, but the issue wasn’t addressed in Tuesday’s financial update, leaving the deadline less than 60 days away.
The Canadian Federation of Independent Business (CFIB) said Tuesday it was “deeply disappointed” that the fall economic statement did not include an extension of the deadline, which is fast approaching.
“Regrettably, Ottawa has ignored the pleas of thousands of small business owners across Canada and failed to address the crippling pandemic debt burdening small businesses,” CFIB President Dan Kelly wrote in a written statement. BNN Bloomberg reports.
According to Kelly, more than two-thirds of small businesses are still struggling with thousands of dollars in pandemic debt. CFIB has advocated for a forgivable extension of the repayment period for the Canada Emergency Business Account (CEBA) from next January to December 31, 2024.
The way the debt relief works is that nearly 900,000 businesses that received interest-free loans of up to $60,000 through CEBA at the height of the pandemic will have a third of the loan forgiven if they repay within a certain period of time.
This deadline was previously extended from the end of 2022 to the end of 2023, before finally being extended to next January.
Since there is no further extension, the debt relief deadline still expires on January 18, 2024.
This means that as of Thursday, business owners still have approximately 56 days to repay their debts in order to qualify for debt relief.
If you can’t meet the January deadline, you won’t automatically be in default – you just won’t be eligible for partial forgiveness of your debt, which means you’ll have to pay the entire amount.
Are you a small business owner worried about meeting the final CEBA repayment deadline? CTVNews.ca wants to learn more about your situation and how your business could be impacted without another federal extension.
Share your answers with us by emailing us at dotcom@bellmedia.ca, including your name, general location and phone number in case we wish to follow up. Your comments may be used in a CTVNews.ca story.
With files from BNN Bloomberg
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