Small Businesses at Risk of Closing Without CEBA Loan Repayment Extension

One in five small businesses across the country is at risk of closing its doors in 2024 if Ottawa does not extend the repayment deadline for Canada Emergency Business Account (CEBA) loans, warns the Canadian Federation of Independent Business (CFIB) .

The current deadline to repay the loan is December 31, 2023. Without the extension of this deadline, these businesses will lose the grant portion of the loan, up to $20,000, and will be required to pay 5% interest on the entire of their pay.

In Quebec, 34% of SMEs are likely to miss the repayment deadline for their CEBA loan in 2023, and 17% of SMEs are at risk of closing their business if the repayment deadline for their CEBA loan CEBA is not carried over, which is the equivalent of 45,327 companies.

“The message from small business owners is clear and clear: they want more time to repay their loan. Almost three-quarters of our members say they need more time. You should also know that only half of SMEs have returned to their usual sales levels. Sales are weak and debt levels are high. The government must act. The deadline for repayment of the CEBA loan must be postponed. But time is running out. Ottawa must intervene now,” says Jasmin Guénette, vice-president of national affairs at the CFIB.

Nine out of ten small business owners have obtained a CEBA loan, says CFIB. Of these, three quarters got between $40,001 and $60,000, and one quarter got $40,000 or less. However, only 10% of the beneficiaries repaid their loan.