TORONTO – The Canadian Federation of Independent Business says in a survey of its members, 78 per cent of them reported that taking extra time to repay their Canada Emergency Business Account loans will increase the likelihood of their survival.
The federation says 49 per cent of small businesses are still making below-normal revenues, with those in hospitality, arts and recreation, retail and social services hitting the hardest.
CFIB president Dan Kelly says high interest rates, inflation and labor costs are making it difficult for small businesses to keep their heads above water, let alone make any dent in the debt they took on to survive pandemic restrictions.
The CFIB said 10 per cent of the businesses surveyed that took a CEBA loan have been able to repay it in full, while another 47 per cent said they will be able to repay it by the end of this year.
The federation is calling on Ottawa to extend the repayment deadline for CEBA interest-free loans to the end of 2025 or at least to the end of 2024.
The current deadline for repaying CEBA is interest-free and taking advantage of the forgivable portion of loans is at the end of this year.
The report is based on an online survey completed by 5,996 CFIB members between March 13 and 22.
This report by The Canadian Press was first published May 10, 2023.
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