Federal Government extends repayment period and partial loan forgiveness towards Canada Emergency Business Account program

Prime Minister Justin Trudeau announcing an extension to
the CEBA program repayment deadline at an event yesterday
(Screenshot from CPAC)

A call to reduce the burden on business owners was answered by the Federal government on Thursday, with Prime Minister Justin Trudeau announcing that there will be an additional year for loan repayments for those business owners that took assistance through the Canada Emergency Business Account program in the COVID and post COVID period.

Also announced was more flexibility for loan holders towards loan forgiveness of up to 33 percent.

As a result of the announcement yesterday, the repayment deadline for CEBA loans to qualify for partial loan forgiveness of up to 33 per cent is being extended from December 31, 2023, to January 18, 2024, recognizing that the end of December is a busy time for many Canadian businesses. 

The government noted that the announcement  builds on the government’s previous one-year extension announced in January 2022. 

More details towards that program and the new grace period can be reviewed here.

The announcement was one that gained mixed reviews from Skeena-Bulkley Valley MP Taylor Bachrach.  

He and a number of other NDP MP's had been advocating for small business operators for a number of months, seeking some further attention by the Federal government. 

And Thursday's announcement left the MP somewhat insulted.

 

"My NDP colleagues and I have been pushing the government to extend the repayment deadline for CEBA loans to give small businesses a chance to recover from the pandemic, rising costs due to inflation, and interest rate hikes. 

While we're glad to see that these businesses will be able to avoid the five-percent interest rate for two more years, the fact that the government only gave these businesses an additional eighteen days to qualify for partial loan forgiveness is frankly, insulting."

The Skeena-Bulkley Valley MP has vowed to continue to keep pressure on the Federal Government towards the issue of partial loan forgiveness, his full statement can be reviewed below.

click to enlarge

You can review some of his past advocacy on the issue from our archive page.

The Federal announcement was also panned by the Canadian Federation of Business which observed of its limitations and described the federal efforts as 'not good enough'.

So far, the Prince Rupert Chamber of Commerce which advocates for local business, has not offered up an opinion towards Thursday's announcement. 

The Liberal Government's plan has also generated some discussion for Canada's business community, some of their thoughts were relayed through the Business media yesterday.

'Lipstick on a pig': Businesses say Ottawa's CEBA repayment extension misses crucial point 

Canada extending small business emergency loan repayment deadline 

Ottawa extends deadline for interest-free CEBA repayment 

Businesses to get extra time to pay back loans, Trudeau announces 

Government extends pandemic small business loan repayment deadlines 

CEBA loan repayment deadline extension doesn't go far enough: CFIB

More notes on the Business sector in the Northwest can be reviewed here.

We explore items of note on the Federal scene from our Ottawa Observations feature from our companion blog D'Arcy McGee which you can access here.

Cross posted from the North Coast Review.