Fed's Economic Update Neglects Vital Small Business Issues, Specifically CEBA Extension

22 Nov, 2023

Fed's Economic Update Neglects Vital Small Business Issues, Specifically CEBA Extension

The Canadian Federation of Independent Business (CFIB) expressed profound disappointment with the 2023 Fall Economic Statement from the federal government, citing a lack of support for small businesses in tackling ongoing challenges, notably by neglecting an extension to the Canada Emergency Business Account (CEBA) repayment deadline.

Despite small businesses' pleas, the government has not addressed the request to extend the CEBA forgivable deadline from January 18, 2024, to December 31, 2024.

Dan Kelly, CFIB president, highlighted the distress among small business owners, mentioning that over two-thirds of them are burdened with pandemic-related debt, averaging $126,000. Concerns are compounded by the impending CEBA repayment, with two-thirds lacking the funds to repay the loan and half unable to secure the forgivable portion. Failure to repay by January 18 could escalate CEBA debt by up to 50%, risking substantial business closures.

Kelly criticized the government's allocation of subsidies for multinational vehicle battery plants while overlooking the urgent needs of struggling small businesses. CFIB vows to persist in urging the government to extend the CEBA forgivable deadline to December 31, 2024.

Additionally, the government's decision to proceed with four major tax hikes over the coming months, including Employment Insurance, CPP, federal carbon tax, and liquor tax, adds to the financial strain on Canadians and small businesses. CFIB emphasized the lack of measures to alleviate tax pressures on small firms.

While CFIB acknowledges some progress on issues like competition law, interprovincial labor mobility, and Employee Ownership Trusts, the statement fell short of addressing critical small business priorities.

CFIB expressed disappointment in the absence of a clear timeline to return to a balanced budget, citing it as a priority for small business owners.

As Canada's largest association of small and medium-sized businesses, CFIB remains dedicated to advocating for policy change at all government levels, offering expert guidance, and negotiating exclusive savings to enhance business owners' prospects for success.