As the deadline for local businesses to repay their pandemic loans approaches, North Island MPs are asking for an extension.

The payback deadline for the Canada Emergency Business Account (CEBA) loans given out during the pandemic is on Jan. 18, and North Island-Powell River and Courtenay-Alberni MPs are asking the federal government to extend the repayment and loan forgiveness deadline, which they say will give small businesses who are still recovering from the pandemic and the higher cost of living time to 鈥済et back on their feet.鈥�

According to Restaurants Canada, a food service industry advocacy group, 鈥渙ne in five restaurants with a CEBA loan are now on the brink of closing one or more of their locations.

鈥淩ecovery in the foodservice industry has been painfully slow because of several factors beyond the control of restauranteurs, including record-high inflation, the rising cost of food, and labour shortages. We are not asking for a hand-out; we are asking for more time,鈥� the Restaurants Canada release says. 鈥淐urrently, a staggering 53 per cent of restaurants are operating at a loss or barely breaking even compared to 10 per cent pre-pandemic, underscoring the obvious connection to this unique and devastating period in our industry and the urgent need for further support and assistance.鈥�

Kelly Higginson, President, and CEO of Restaurants Canada stated, 鈥淧eople understand that restaurants are part of our social fabric, they are gathering spots to celebrate life鈥檚 milestones and achievements and the place where friends come to reconnect.鈥� Higginson continued, 鈥淵our favorite mom and pop restaurant and local gathering place is at risk. If what the industry is telling us comes to fruition, Canadian communities will lose something very special, simply because of an arbitrary deadline.鈥�

North Island-Powell River MP Rachel Blaney wrote to the Minister of Finance last week, asking her to extend the deadline. In her letter, Blaney mentioned Powell River-based Point Group Hospitality, saying that for the group 鈥渢he last two summers were her business鈥檚 least profitable due to wildfires, preventing her from repaying her CEBA loan 鈥� while over 77 per cent of B.C.鈥檚 food and accommodation businesses received CEBA loans, only a quarter of those businesses were able to repay them by the end of 2023.鈥�

Blaney and Courtenay-Alberni MP Gord Johns asked Ottawa to help businesses in July of last year, and Johns called on the Prime Minister in September and again in December to extend the deadline. The NDP wrote three letters, including last week, to the Minister of Finance to ask for relief for small businesses. The NDP also introduced a private member鈥檚 motion to extend the loan forgiveness deadline to the end of 2024.

鈥淲e were there to help Canadians through the pandemic and we鈥檙e going to continue to support small businesses in many different ways but the pandemic is over in its acute phase,鈥� Prime Minister Justin 台湾MM裸聊室 said in the House of Commons on Dec. 13 in response to Johns. 鈥淲e will continue to be there to support people, but pandemic supports need to end.鈥�

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