FCEI Receives Support from Political Parties to Extend Deadline for Repayment of CUEC Loans
OTTAWA, ON, August 30, 2023 /CNW/ – The Canadian Federation of Independent Business (CFIB) is pleased to announce that it has received support from the New Democratic Party, the Bloc Quebecois, and the Green Party of Canada in its campaign to extend the deadline for repayment of loans from the Canada Emergency Business Account (CEBA).
With only 4 months remaining until the repayment deadline of December 31, 2023, small business owners who fail to repay their loans by then will lose the subsidy portion of up to $20,000 and will have to pay interest on a much higher loan balance than anticipated.
“Thousands of small business owners are telling us that they will not be able to repay their pandemic debts by the end of December. We are simply asking the government to give them more time to repay their loans, not to convert the entire loan into a subsidy. Three federal parties support us, and even though many Conservative and Liberal MPs personally support our request, their leaders have not officially spoken out so far. It is high time for that to change and for Ottawa to make a decision,” said Jasmin Gunette, Vice President of National Affairs at CFIB.
Over the past few months, nearly 14,000 small business owners have signed CFIB’s petition to ask the government to extend the deadline. In total, over 35,000 have signed it over time to demand improvements to COVID-19 assistance programs, including the extension of the deadline for repayment of CEBA loans.
CFIB is urging the federal government to extend the deadline for repayment of CEBA loans to December 31, 2024, or even 2025. CFIB’s research shows that 19% of small businesses, nearly 250,000 companies nationwide, could close their doors next year if the federal government decides not to extend the deadline.
“The contribution of small businesses to the local economy is significant. It is important to note that every dollar spent in a small business keeps $0.66 in the local economy, compared to $0.11 if the same amount is spent in a multinational corporation. The government needs to make a decision quickly, not only for the affected businesses but also for their employees and the economy as a whole,” said Christina Santini, Director of National Affairs at CFIB.
Small business owners can sign CFIB’s petition to ask Ottawa to extend the deadline for repayment of CEBA loans.
About CFIB
The Canadian Federation of Independent Business (CFIB) is the country’s largest association of small businesses, with 97,000 members in all sectors and regions. It aims to increase the chances of success for small businesses by advocating for their interests with governments, providing personalized resources, and offering exclusive savings. Visit fcei.ca to learn more.
SOURCE Canadian Federation of Independent BusinessLes partis politiques se joignent aux petites entreprises pour demander un report de la date limite de remboursement des prêts du Compte d’urgence pour les entreprises canadiennes (CUEC). La Fédération canadienne de l’entreprise indépendante (FCEI) a obtenu le soutien du Nouveau Parti démocratique, du Bloc Québécois et du Parti vert du Canada dans sa campagne pour reporter la date limite de remboursement des prêts du CUEC, fixée au 31 décembre 2023.
Si les propriétaires de petites et moyennes entreprises (PME) ne remboursent pas leur prêt d’ici là, ils perdront la portion subvention allant jusqu’à 20 000$ et devront payer des intérêts sur un prêt dont le solde sera beaucoup plus élevé que prévu.
La FCEI affirme que des milliers de propriétaires de PME ont exprimé leur in
How many small businesses could potentially face closure next year if the repayment deadline for CEBA loans is not extended?
Deadline is not extended. These businesses have been heavily impacted by the COVID-19 pandemic and need more time to recover and repay their loans.
The support from the New Democratic Party, the Bloc Quebecois, and the Green Party of Canada is a positive development for CFIB’s campaign. It shows that there is widespread recognition across political parties of the challenges faced by small business owners and the need for an extension of the repayment deadline.
However, CFIB also acknowledges that there are Conservative and Liberal MPs who personally support their request but have not officially spoken out yet. CFIB urges these leaders to take a stance and support the extension of the repayment deadline.
The petition launched by CFIB has gained significant support from small business owners. Over the past few months, nearly 14,000 business owners have signed the petition, and over 35,000 have signed it over time. This demonstrates the widespread concern and urgency among small businesses to have the repayment deadline extended.
CFIB’s research indicates that 19% of small businesses, equivalent to nearly 250,000 companies nationwide, could face closure next year if the deadline is not extended. This highlights the critical need for government intervention to support these businesses and prevent further economic damage.
In light of these findings and the support received from political parties, CFIB is urging the federal government to extend the repayment deadline for CEBA loans to December 31, 2024, or even 2025. This would provide small business owners with the necessary time and flexibility to recover from the pandemic and repay their loans without facing additional financial burdens.
The support from political parties and the growing number of signatures on CFIB’s petition reflect the urgent and widespread demand for an extension of the repayment deadline. It is now up to the government to make a decision and provide the necessary support to safeguard the survival of small businesses in Canada.
