As small businesses risk going under this New Year, New Democrats urge the Liberals to push back looming CEBA deadline « Canada’s NDP
250,000 small businesses risk bankruptcy in the New Year because of loan repayment.
OTTAWA – With the Canada Emergency Business Account (CEBA) loan repayment deadline only one month away, NDP Small Business critic Richard Cannings is urging Deputy Prime Minister Chrystia Freeland and Minister for Small Business Rechie Valdez to extend the repayment deadline and loan forgiveness.
While the Liberals are pushing small businesses to repay their loans, they’re handing out $21.6 billion in contracts to large consulting firms. In November, the Parliamentary Budget Officer confirmed that a reduction of outsourcing by just four per cent would cover the costs of extending the CEBA deadline. The NDP says instead of delivering relief for small businesses that risk going under without an extension on their CEBA loan, the Liberals are giving a pass to massive ultra-rich corporations.
“Small businesses are the hub of our communities, our favourite local coffee shop or small grocer. They supply our communities with food and essentials and offer local jobs,” said Cannings. “Yet, the Liberals are backing these businesses into a corner – shop owners have gone through a global pandemic and now are dealing with a cost-of-living crisis that means higher rent and higher costs for supplies and products. But the Liberals won’t cut them a break while having no problem giving billions to big profiting consulting firms.”
In his letter, Cannings highlighted that Medicago, an ultra-wealthy company, got a $400 million government loan to produce vaccines that were never made and was asked to pay back a mere 7.5 per cent of the loan.
While huge corporations get leniency from the government, small businesses are getting little flexibility from the Trudeau government. For months, the Canadian Federation of Independent Businesses (CFIB), small businesses, Canada’s NDP, and every premier from across the country have been calling for a year-long CEBA extension to keep businesses afloat. The Liberals have refused, while Pierre Poilievre and the Conservatives have been completely silent on the matter.
“The Liberals are out of touch with what small businesses are going through but will always make excuses to help out their rich friends,” said Cannings. “And Pierre Poilievre is not the answer. He and his corporate-controlled Conservatives say they’re in it for you and yet remained silent while small businesses crumble under their CEBA debt.
“New Democrats believe in supporting small businesses and local workers during tough times. We’re urging the Liberals to muster up all their holiday spirit, to extend the CEBA loan deadline with the forgivable portion so that hundreds of thousands of businesses can make it through the new year.”