CEBA Loan Update and Impact

On August 14th the Federal government announced policy changes that may likely impact and support your business.

Most notably, having heard from countless business communities across Canada, including our Chamber, the government is extending the term loan repayment and grant qualification deadline under the Canada Emergency Business Account (CEBA) program.

Businesses that repay their loan by January 18, 2024, will have $10,000.00 or $20,000.00 forgiven from their loan, depending on how much they had borrowed ($40,000.00 or $60,000.00 respectively).
After January 18, 2024, none of the remaining loan will be forgiven and interest will accrue at 5 per cent per year. The loans are due in full by December 31, 2026, with the repayment deadline for some businesses being as early as December 31st, 2026. More details here.

This is the government’s second extension of the deadlines, highlighting that they continue to hear from small businesses on their struggles to repay. However, does this policy really support struggling small businesses? Multiple factors, largely out of the control of small businesses, have made “post-Covid” life more costly and challenging. Many small businesses are struggling to survive.

This policy means that while those who were favoured by the recent fluctuating economy and can repay the loan, reap the benefit of the partial loan forgiveness, but struggling business only have more rising debt to repay. As many businesses crumble under the rising costs of goods and services, lack of skilled labour, and a tight economy, they now will see interest accrue on a government loans that were meant to help them survive.

Related Advocacy Update – Housing

The government is also removing the Goods and Services Tax (GST) on the construction of new apartment buildings, and is asking the Province to follow suite. However, it is unclear if or how the government will structure this policy to encourage the transfer of these savings to tenants and actually address the housing affordability crisis.

The government is also requiring municipal and regional governments to end exclusionary zoning and encourage apartment construction near public transit. As the BRT comes through Dundas, this could mean more vibrant and walkable downtowns.

What are your thoughts on the topic? Write to us at or on twitter/”X” @WhitbyChamber or on LinkedIn.

#CEBA #SmallBusiness #OntarioSmallBusiness #Whitby #OntarioHousing #WCCProud #supportsmallbusiness

– Preeti Sangwan, Policy and Advocacy Advisor, Whitby Chamber of Commerce