B.C. Premier David Eby has sent Prime Minister Justin Trudeau a letter, asking for the federal government to extend loan repayments for struggling small businesses.
Eby’s letter has been co-signed by all the other premiers in Canada as the deadline for the Canada Emergency Business Account loan repayment looms.
Through the pandemic, the federal government’s CEBA offered interest-free loans to small businesses and not-for-profit organizations.
The deadline to qualify for partial loan forgiveness is Jan. 18, 2024.
“Canadians are feeling squeezed by the rising cost of housing, groceries and other daily essentials. It’s no different for small businesses,” Eby wrote.
“Just when many small businesses are starting to find their feet after the pandemic, they’re now being walloped by rising inflation and interest rates.”
More than 30,000 business owners signed a petition from the Canadian Federation of Independent Business (CFIB) earlier this year urging Ottawa to extend the deadline.
Ontario Premier Doug Ford and Newfoundland Premier Andrew Furey previously asked the federal government to extend the repayment deadline.
The CFIB’s research shows 20 per cent of all businesses in Canada could be at risk of closing their doors unless there is some relief.
During the COVID-19 pandemic, a business was eligible to apply for up to $60,000 through the program, with up to $20,000 forgiven if the rest was repaid by a certain deadline.
The original repayment deadline was the end of 2022 and it was later extended to the end of this year.
“Whether it’s homeowners and renters, or small businesses struggling to recover, we need to support people in these difficult times,” Eby wrote.
“I would like to thank the other premiers in joining this very important request of the federal government and I am confident that Prime Minister Trudeau will respond positively to support small businesses.”
In British Columbia, 122,890 businesses were approved for CEBA loans worth more than $6.6 billion.