Small businesses need more time to pay back CEBA loans

With the deadline to repay the Canada Emergency Business Account (CEBA) loan interest-free fast approaching, 78% of small business owners say 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. A strong majority (72%) of small businesses need to see CEBA repayment rules extended past the end of this year, with 30% preferring a deferral of one year and 42% preferring two years. CFIB’s research shows that only 10% of businesses that took on a CEBA loan have been able to repay it entirely, while another 47% say they will be able to repay it by the end of 2023. If the CEBA loan is not repaid by December 31, 2023, small business owners will lose the up to $20,000 forgivable portion and start accruing interest.