Toronto, May 10, 2023 – With the deadline to repay the Canada Emergency Business Account (CEBA) loan interest-free by year-end fast approaching, 78% of small business owners report that getting extra time to repay their CEBA loan will increase the likelihood of their business’ survival, says the Canadian Federation of Independent Business (CFIB).
CFIB data shows about half (49%) of small businesses are still making below normal revenues, with those in hospitality, arts and recreation, retail and social services hit the hardest.
“Many small businesses are trying to repay their COVID-related debt, while facing an onslaught of additional challenges. High interest rates, inflation and labour costs are all making it hard for small businesses to keep their head above water, let alone make any dent in the debt they were forced to take on to survive pandemic restrictions,” said Dan Kelly, CFIB president. “If the government helped ease their debt burden, small businesses could reinvest the money into employees or back in their business. Otherwise, we may see more business failures as businesses realize they can’t afford to stay open.”