
Stock image
Thursday marks the day hundreds of thousands of businesses who received federal pandemic loans have to pay the money back.
One-third of the CEBA loan can be forgiven if the outstanding amount is repaid today.
But – if not – it’ll convert into a three-year loan with a five percent annual interest rate.
While Simon Fraser University Professor Andrey Pavlov acknowledges the loan’s assistance during the COVID pandemic, he emphasizes there should be more support for small businesses in Canada.
“We should extend the deadline, given that we have done very little to nothing to help small businesses. But extending the deadline isn’t going to help on its own, we also need to go through with a very fine tooth comb through all the regulations and taxes that currently face.”
Pavlov says this as operating conditions for small businesses in Canada haven’t improved due to things like rising interest rates and carbon tax.
“The issue is that we never really made it easier for small businesses to operate in Canada,” he explained. “Not a single dollar went to reducing regulations, red tape, or taxes for small businesses. So we helped businesses in the short term, and that was a good thing to allow businesses to continue to operate from a financially stronger basis.”
However, Pavlov suggests the Feds should eliminate all the unnecessary regulations and taxes small businesses are faced with; instead of putting more stress on these small business owners.
“So businesses can focus on their business and on the valuable work they are doing, instead of spending so much money, time and energy on dealing with government regulation and taxes.”
Almost 900,000 businesses and non-profits received a Canada Emergency Business Account loan during the pandemic, getting up to $60,000 in interest-free loans to help them survive.
The Canadian Federation of Independent Business and Restaurants Canada have both called for the deadline to be extended again as this deadline will be the last straw.
However, Prime Minister Justin Trudeau said on Wednesday it’s time to wrap up pandemic financial aid programs.
(With files from The Canadian Press)