The Canadian Federation of Independent Business (CFIB) says it will continue its lobbying efforts to have the federal government make changes to the Canada Emergency Business Account (CEBA) loans, after the prime minister’s office announced it will extend the term loan repayment deadline by one year.

The announcement was but a mention in between new measures to address the dearth of rental housing available in the country and the high price of groceries. (The government plans to incentivize the building of rental units by removing the GST on the construction of new apartment buildings for renters.)

“The CFIB is disappointed with today’s announcement on changes,” the CFIB writes. “The government has failed to address the most critical issue on outstanding CEBA loans – the loss of the $20,000 forgivable portion for those unable to repay the loans by year end. The extension of the forgivable deadline by a few weeks will be of very little value to thousands of small business owners.” 

According to CFIB data, 69 per cent of small businesses who took out a CEBA loan have not yet repaid any portion. Only 18 per cent have repaid their loan in full, as of September. A CFIB petition about the loan program’s shortcomings garnered more than 40,000 signatures from small business owners across Canada.

“It is helpful that the government has given business owners an additional year to repay the full balance of the loan, but the plan misses the most central issue – the loss of the forgivable portion. Earlier CFIB data found that losing the forgivable portion puts at jeopardy the future of up to 250,000 small businesses.”