Ottawa has extended the deadlines for small businesses to repay Canada Emergency Business Account (CEBA) loans that were distributed during the pandemic. However, according to the Canadian Federation of Independent Business (CFIB), this extension is not sufficient to help the many struggling businesses. Under the CEBA program, small businesses could apply for up to $60,000, with up to $20,000 being forgiven if paid back by a specific date. The government has now extended the overall loan repayment deadline to December 31, 2026. However, the deadline to meet the condition for the forgiveness grant has only been increased by 18 days, from December 31, 2023, to January 18, 2024.
According to the CFIB, the measure falls short because 69 percent of small businesses that received CEBA loans have not repaid them in full, compared to only 18 percent that have. The CFIB stated that the extension of the forgivable deadline by a few weeks will be of little value to the thousands of small business owners who currently do not have the means to repay the loans.
In June, the CFIB warned that up to 19 percent, or 250,000, of small businesses were at risk of closing down unless the CEBA deadline was extended. The Canadian Chamber of Commerce also advocated for the loan repayment deadline to be extended, and 35,000 businesses signed a petition requesting improvements to pandemic supports, including the extension of CEBA loans. Initially, the government extended the deadline until the end of 2023.
Prime Minister Justin Trudeau announced the extensions, acknowledging that while many businesses have paid back their loans, some need more time. Around 900,000 small businesses and not-for-profits received CEBA subsidies. The management of the CEBA program was outsourced to Accenture, an IT and consultancy firm based in Dublin. The government agency responsible for hiring Accenture, Export Development Canada, paid the company over $208 million.
Initially, the government did not disclose its outsourcing arrangement with Accenture or the amount paid to the firm.