In the early days of the pandemic the federal government offered up to $60,000 loans for small businesses and non-profits with up to 33% forgivable to help them through the mandated closures through the Canada Emergency Business Account program.
The repayment deadline came and went earlier this month for businesses who couldn’t have either refinance the loan or lose the forgivable portion.
It was a decision that upset The Canadian Federation of Independent Business, or CFIB, who called for an extension to allow businesses more time to operate in what they call “good years,” to pay their loans back.
CFIB’s Director of National Affairs Christina Santini says the economy did not bounce back the way business owners were told at the onset of the loans.
Santini said CFIB, which has 97,000 members across Canada, estimated 22% couldn’t pay back their loans and nearly 1 in 5 businesses will close within the next two years due to the additional debt incurred and the current economic state.
CFIB’s call for an extension garnered support from all 13 Premiers, three federal parties, and 57,000 petition signatures but they were unsuccessful.
Santini said the entire process behind the pandemic-based loan has been “a mess from the start.”
Story by Grant Deme