Struggling Small Businesses Seek Loan Repayment Deadline Extension Amid Pandemic Recovery

Small businesses in Canada are struggling to repay loans obtained through the Canadian Emergency Business Account (CEBA), a pandemic relief program offering interest-free loans backed by the government. Out of nearly 900,000 approved businesses receiving nearly $50 billion in loans, only $5.7 billion has been repaid by November, with just 13% of businesses fully repaying their loans. Many businesses, like Fun & Games arcade in Kamloops, B.C., have not yet returned to pre-pandemic levels of income, making loan repayment challenging. The original deadline for repayment was extended to the end of 2023 due to pandemic challenges, but the Canadian Federation of Independent Business (CFIB) is advocating for another extension to support struggling businesses. The government is considering requests for further extensions, acknowledging ongoing challenges faced by small businesses amid economic uncertainty.