With rise in interest rates, Skeena Bulkley Valley MP reissues call for CEBA extension for small business

Finance Minister
Chrystia Freeland's 
inbox is filling up with
calls for a break on the
CEBA repayment deadline

Yesterday's increase to the interest rate by the Bank of Canada has raised concerns on the impact to British Columbians from Premier David Eby, the Premier describing the move upwards to five percent as devastating news for families who have debt. 

The announcement from the Bank of Canada from Wednesday noting that the move to five percent was made as a result of persistent inflationary pressures. 

The increase also caught the attention of Skeena-Bukley Valley MP Taylor Bachrach, who noted of the impact that the Bank of Canada measure will have on small business, particularly those that have to repay CEBA loans form the pandemic period.

“Local businesses offer important services, especially to rural communities. But for the last few years, these local businesses have been hit with one thing after the other. First a pandemic, then increased costs due to inflation and now, another interest rate hike. Extending the payback period is a reasonable step the government can take to have these businesses' backs during a difficult time."

It's an issue that he raised in June in the House of Commons and an area still to be addressed by the Federal government.

Bacharach followed up on those questions in the House with a letter to Finance Minister Chrystia Freeland.

“Many small business owners are finding it harder than expected to repay their loans. The concern is that if the repayment period is not extended, the closure of vulnerable businesses will not have been prevented, only postponed.” -- MP Taylor Bachrach in a letter to Finance Minister and Deputy Prime Minister Chrystia Freeland

As the MP notes:

CEBA loans need to be repaid by the end of the year if owners hope to get a third of their loans forgiven and avoid five per cent interest on the outstanding balance. The Canadian Federation of Independent Businesses (CFIB) has stated that nearly 47 per cent of its members in British Columbia could be at risk of going out of business if they are forced to pay by the deadline. 

The Canadian Federation of Independent Business has launched a petition campaign to take the message of small business to the Federal Government, you can review that initiative here.

More notes from the House of Commons and the Skeena-Bulkley Valley constituency can be reviewed through our archive page.

A look at business themes across the Northwest is available through our archive page.