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Premiers call on Ottawa to extend CEBA forgiveness deadline by a year – CBC.ca

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Canada’s premiers are calling on the federal government to push back the deadline for businesses to repay their government-backed pandemic loans in order to access the forgivable portion.

The Canada Emergency Business Account (CEBA) was introduced at the height of the pandemic to help out small businesses forced to close or limit their operations due to public health measures. The program offered interest-free loans backed by the federal government.

A business could apply for up to $60,000 through the program. Up to $20,000 would be forgiven if the rest was repaid by a certain date.

In a letter to Prime Minister Justin Trudeau, all 13 provincial and territorial premiers asked Ottawa to extend that deadline.

“The same loan that was once a lifeline during the pandemic is now threatening to sink the small businesses that are only just getting by,” the letter reads.

The government recently granted a small extension to the deadline, moving it from December of this year to Jan. 18, 2024. Many businesses have called for the deadline to be delayed by a full year.

The premiers are now calling for a full year extension. They argue in their letter that small businesses are being hit with new costs pressures from inflation and higher interest rates.

In an interview with CBC News that was conducted prior to the letter being made public, federal Small Business Minister Rechie Valdez wouldn’t say if the government is considering another extension. 

Small Business Minister Rechie Valdez says she recently toured the country listening to small businesses’ concerns. (Justin Tang/Canadian Press)

Valdez did say she has been touring the country listening to small businesses in recent weeks, and plans to report back to cabinet on what could be done to help those that are struggling.

“I will continue to advocate for small businesses and even think about different options that are available at our disposal,” she said.

When asked if those options include another CEBA extension, the minister was tight-lipped.

“There’s several options,” she said. “But it’s more for me to bring back and then see what’s viable with both our departments as well as with cabinet.”

Nearly 900,000 businesses were approved for the program, which distributed just over $49 billion in loans. About a fifth had paid back their loans in full by the end of June.

The government is giving businesses looking to refinance their CEBA loans until March 28 to qualify for the forgivable portion. But some businesses fear that a new loan to cover the forgivable portion of CEBA will come with higher interest rates.

Kelly Higginson, president of Restaurants Canada, said the premiers’ letter came as a “relief.”

“The short-sighted CEBA announcement a month ago was, for a lot of operators, the last nail in the coffin,” she said. “So it is really a relief to see this call to action by the premiers.”

Higginson said she has had “productive meetings” with Valdez since she was appointed small business minister in July and trusts that she will bring what she’s heard from small businesses back to Ottawa.

“The challenge is what happens from there,” Higginson said.

Dan Kelly, president of the CFIB, welcomed the premiers’ letter calling for an extension to the CEBA forgiveness deadline. (Sue Goodspeed/CBC)

The Canadian Federation of Independent Business (CFIB), another group that has been advocating for a year-long extension, welcomed the premiers’ support on Friday.

“We are heartened that all 13 of Canada’s premiers have sent a letter to the prime minister endorsing our recommendation,” CFIB president Dan Kelly said in a media statement.

Kelly said that many of CFIB’s member businesses have yet to return to pre-2019 sales levels.

“Most small firms have yet to recover from two years of on-and-off COVID restrictions. Only half of small firms are back to 2019 levels of sales,” he said.

The federal New Democrats also welcomed the premiers’ letter.

“New Democrats urge the federal government to heed this call, show leadership and act,” NDP small business critic Richard Cannings said in a media statement.

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Carry On Canadian Business. Carry On!

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October 22, 2024

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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