November 23, 2023
Canadians are urging the federal government to forgive CEBA loan repayments, as many small businesses struggle to repay the money before the deadline. Over 14,000 people have signed a petition calling for CEBA loan repayment forgiveness. It was started by Moe Tabesh, an accountant based in Ottawa who works with small businesses.
“As a business consultant, I have witnessed firsthand the struggles of my clients who have borrowed funds through the Canada Emergency Business Account (CEBA) to keep their businesses afloat amidst the economic turmoil caused by the pandemic,” the petition reads.
“These are hardworking individuals who contribute significantly to our economy, yet they find themselves unable to repay these loans due to continued financial hardship.”
The program was introduced by the government in April 2020 during the COVID-19 lockdowns. It offered interest-free loans of up to $60,000 to small businesses and not-for-profits.
Nearly 900,000 small businesses and non-profits in Canada received a lifeline from CEBA, with a total of $49.2 billion being paid out, according to the government.
As of May 31, only 21% of those businesses had fully repaid their CEBA loan, according to federal statistics. In September, the government extended the CEBA loan repayment deadline from December 31, 2023, to January 18, 2024. However, Tabesh says it’s become clear that many businesses are still struggling and may not be able to repay these loans.
“We must remember that behind every business there is a person or family whose livelihood depends on its success,” reads the petition. “The inability to repay these loans can lead not only to financial ruin but also immense personal stress and anxiety.”
According to a recent survey by the Canadian Federation Of Independent Business (CFIB), the 18-day extension isn’t enough for its members. More than half (61%) of its members said they’d have to resort to additional loans from their banks to meet the CEBA loan repayment deadline.
