Small Businesses Disappointed by CEBA Repayment Adjustments
New data from the Canadian Federation of Independent Business (CFIB) reveals that 80% of small businesses found the recent changes to the Canada Emergency Business Account (CEBA) repayment deadline unhelpful, sparking concerns within the business community.
Urgent Need for Extended Forgivable Deadline
Small business owners across Canada have been vocal about their need for an extension in the deadline to repay CEBA loans to retain the forgivable portion. While the government announced a one-year extension, it only applies to those missing out on the forgivable portion, leaving many small businesses in a difficult situation.
Business Community’s Immediate Concerns
According to CFIB’s survey, 87% of small businesses believe extending the forgivable deadline to the end of 2024 would greatly benefit their operations. The survey also highlights that businesses are exploring various avenues, including financial institution refinancing and home equity use, to meet their CEBA debt obligations.
Challenges Faced by Small Businesses
Two-thirds of businesses anticipate difficulties in meeting the current forgivable deadline of January 18, 2024. The survey further indicates that one-third can repay their CEBA loan on time, while others plan to borrow funds, creating financial strain for many.
CFIB’s Advocacy for Extended Deadline
CFIB is actively pushing the federal government for an extension of the forgivable deadline for CEBA loans until the end of 2024. The organization’s petition on this matter has garnered significant support, with over 46,000 signatures from small business owners across Canada.
Call for Swift Government Action
Business owners are left in a dilemma, facing the choice between losing the forgivable portion or taking on additional loans at higher interest rates. CFIB urges the government to act promptly, emphasizing that there is still time to rectify the situation and provide much-needed relief to struggling businesses.
Resources for Business Owners
Small business owners seeking more information on the CEBA announcement and financing options can visit CFIB’s website for valuable resources and guidance. The organization continues to advocate for practical solutions to support the resilience of Canada’s small businesses.