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Small Business Owners Rally for Extension of CEBA Repayment Deadline Amidst Personal Guarantees Concerns [Video]

By Mario Toneguzzi

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Thousands of business owners across the country have signed a petition by the Canadian Federation of Independent Business (CFIB), calling for an extension to the current Canada Emergency Business Account (CEBA) repayment deadline.

The current deadline is December 31 and if the CEBA loan is not repaid by then, small business owners will lose the up to $20,000 forgivable portion and pay the entire amount at a five per cent interest rate.

While the issue has gained much media attention in recent months, one aspect of the situation is relatively unknown.

Many small business owners are now discovering that in the fine print of the loan many of them unknowingly provided a personal guarantee on the loan, meaning even if the business closes its doors the owner is responsible personally for the debt.

Image: ceba-cuec.ca

That’s raising fears that this could lead not only to more business closures in the country but also to more personal bankruptcies.

In this video interview, Dan Kelly, President/CEO/Chair of the CFIB, explains the situation and the potential consequences.

Recently, a joint letter was sent to Deputy Prime Minister Chrystia Freeland calling for more time to repay CEBA loans while keeping the forgivable portion. More than 250 business associations from coast to coast and across all sectors signed on. CFIB’s research shows that one-fifth of all businesses in Canada—nearly 250,000 small businesses—could be at risk of closing their doors next year unless the federal government changes the deadline.

CFIB is pushing the federal government to extend the repayment deadline for the CEBA loan to the end of December 2025 or at least 2024.

The Video Interview Series by Retail Insider is available on YouTube.

Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior News Editor with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.

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Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Senior News Editor with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training.

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