A Quarter Million Businesses are at Risk of Closure as CEBA Repayment Deadline Approaches: CFIB Urges Government to Give them More Time

A quarter million businesses are at risk of closure as CEBA repayment deadline approaches: CFIB urges government to give them more time
 Courtesy Canadian Federation of Independent Business

Courtesy Canadian Federation of Independent Business

Nearly 250,000 small businesses — 19% of all small businesses in Canada — could be at risk of closing their doors after 2023 unless the federal government changes the deadline to repay the Canada Emergency Business Account (CEBA) loan, warns the Canadian Federation of Independent Business (CFIB). If the deadline isn’t extended, small businesses will lose the forgivable portion as of December 31, 2023, which will add up to $20,000 more to their debt and cause them to face 5% interest on the full balance.

“The message from small businesses is loud and clear: they need more time to repay their CEBA loan. With only half of small businesses back to normal sales, most businesses — particularly in the arts, recreation, hospitality and the service sectors — will need extra runway,” said Dan Kelly, CFIB president. “Financial institutions still have time to delay repayment processes if the government extends the CEBA deadline, but that window is closing. Ottawa needs to act now.”

A new report released today by CFIB entitled Back in Business? Spring Update on Small Business and CEBAalso includes the following key results:

  • Of the nine in ten small businesses who used CEBA, three quarters accessed loans between $40,001 and $60,000, while one quarter received loans of up to $40,000.
  • Only 10% of CEBA users have repaid their loans.
  • A total of 43% of CEBA users risk missing the current repayment deadline by end of 2023. Small businesses in the arts, recreation, and information (62%), hospitality (61%) and social services sectors (46%) are most likely to miss the current CEBA deadline.
  • The smallest businesses with 0-4 employees are the most likely to miss the repayment deadline (49%)
  • Even among the 47% of small business owners who indicate they will meet the 2023 deadline, half say they will struggle to do so, and two-thirds would like to see an extension of the repayment deadline.

“Most business owners want to repay the loan on time in order to secure the forgivable portion, but many of them still can’t guarantee they can do it. Our analysis suggests that most small firms expect to struggle in the process, putting their business’ future at risk,” said Simon Gaudreault, Chief Economist and Vice-President of Research at CFIB. “The closer we get to the end of this year, the more uncertainty a CEBA status quo will create for thousands and thousands of businesses.”

CFIB is pushing the federal government to provide some relief to small businesses by:

  • Extending the repayment deadline for the CEBA loan to the end of December 2025 or at least 2024
  • Considering additional debt forgiveness
  • Implementing an appeal process for CEBA loan recipients that are now deemed ineligible


“The CEBA loan, which once served as a pivotal economic lifeline during the nearly two years of COVID restrictions, is now a source of immense stress and anxiety for small businesses. Ottawa must give them more time, or we will see more ‘permanently closed’ signs in the coming months,” said Corinne Pohlmann, Senior Vice-President of National Affairs at CFIB. “If nothing changes, the consequences will be serious not just for affected businesses, but also for their employees and the wider economy.”

Business owners can sign CFIB’s petition to government to extend the CEBA repayment deadline here. In May alone, CFIB received over 3,500 new signatures, bringing their total to over 23,000 signed petitions from small business owners calling for improvements to pandemic supports and an extension to the CEBA repayment deadline.

Membership with the CFIB is an included benefit when you join the Fitness Industry Council of Canada (FIC). For more information, visit https://ficdn.ca/memberships.


The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 95,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.

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