The Brandon Chamber of Commerce Advocates to Extend CEBA Repayment Deadline

This past year, the Brandon Chamber of Commerce has been working with other Chambers, including the Manitoba Chambers of Commerce and Canadian Chambers of Commerce, to advocate on behalf of Canadian businesses who are holders of the Canadian Emergency Business Account (CEBA) loans.

During the COVID-19 pandemic, nearly 900,000 CEBA loans were approved throughout the country Many of these businesses had no choice but to apply for the loan as the pandemic was beyond their control and many were on the brink of closure. The CEBA loan offered up to $60,000 in financial support to small businesses, with a repayment deadline of December 31, 2023, and a one-third debt forgiveness

In a recent letter to Deputy Prime Minister and Finance Minister Chrystia Freeland, the Brandon Chamber of Commerce, and others, are pushing for a 1-2 year extension on the repayment deadline This letter highlighted the postpandemic struggles, revealing:

49% of small businesses are still making below normal revenues (1)

50% of Canadian foodservice operators are currently operating at a loss or breaking even compared to 12% pre-pandemic (2)

45% of Canada's tourism businesses are likely or somewhat likely to close within the next three years without government intervention into their mounting debt load (3)

More than 250 chambers of commerce, tourism, and industry groups across the country have signed a letter emphasizing the risks of not extending the deadline Failure to repay the CEBA loan by the current deadline will result in loss of access to debt forgiveness of $20,000, increasing debt and potentially forcing more businesses to close.

The letter concluded by requesting an urgent address to the matter It also reminded Minister Freeland that extending the deadline would provide SMEs with the stability and certainty they need to recover and return to the path of prosperity.

The Brandon Chamber of Commerce will continue to advocate and support for local business, and we hope to soon be able to update you with positive response from Minister Freeland.

To read the letter, visit brandonchamber.ca/advocacy-priorities under "Fair Government Regulations and Reduction of Red Tape".

1. (Canadian Federation of Independent Business. (2023, May 10). The clock is ticking: Nearly three-quarters of small businesses need more time to repay CEBA loans. Press Release. www.cfibfcei.ca.)

2. Restaurants Canada. (2023, June 23). https://ontheirplate.ca

3. Tourism Industry Association of Canada. (2023, June 23). Two Out of Five Tourism Operators surveyed in Canada Report Being at Risk of Closing Press Release www tiac-aitc ca