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    • As pandemic business loan repayment deadline looms, calls for extending deadline grow

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    The federal government needs to extend the deadline for small businesses to repay pandemic loans, the New Democrats and a national association representing small businesses said this week.

    The Canadian Federation of Independent Business said nearly a fifth of small businesses are at risk of closure without another extension on the repayment of their Canada Emergency Business Account loans.

    But an economist is cautioning against the move, saying taxpayers shouldn't subsidize businesses that are still struggling to pay back the loans more than three years since the pandemic hit.

    During the pandemic the loans provided up to $60,000 in interest-free loans to about about 900,000 small businesses and not-for-profits The deadline to repay these loans was extended last year to December 31, 2023 to ease pressure on businesses still recovering from the pandemic.

    Now both the NDP and the Canadian Federation of Independent Business want the deadline to be extended again.

    "While the NDP was glad to see the government listen to calls to extend the original repayment deadline, a second extension giving Canada's small businesses more time to get back on their feet is needed," NDP small business critic Richard Cannings wrote to Finance Minister Chrystia Freeland on Monday.

    "There is a real risk that many will not be able to stay afloat, and a substantial portion of that debt will never be repaid."

    Businesses that pay back their loans by the end of the year are eligible to have up to a third of their loans forgiven. Those that don't would see their debts converted to a two-year loan with interest of five per cent annually.

    About $49 billion went out through the program. Export Development Canada said this spring that as of last November, about $5.7 billion had been paid back but only about 13 per cent of businesses had repaid the non-forgivable portion in full.

    Finance Canada has refused to provide an updated figure.

    Miles Corak, an economics professor at City University of New York, said the request for another extension should give pause to policymakers interested in promoting productivity growth.

    "If after three years, these firms are not in a position to repay loans that they took out voluntarily under a clear set of rules … they clearly are not able to meet the rigorous demands of a competitive market," he said.

    Corak said when unsuccessful businesses close down, they make way for other businesses that can do a better job.

    Data from Statistics Canada shows about 40,000 businesses close every month, and a similar number of businesses open.

    Though federal parties have squabbled over pandemic support programs, elected officials from all parties are often sympathetic to the plight of small businesses as they argue these businesses make up a large part of the Canadian economy.

    According to statistics from Innovation, Science and Economic Development Canada, small businesses employed more than two thirds of private sector workers in the country as of 2021. A business is considered to be "small" if it employs fewer than 100 people.

    But Corak said industrial policy in the country should focus on helping small businesses grow and scale up. Instead, current tax policies are anti-growth by rewarding businesses for being small, he said.

    "Much of the government's current tax policy toward small businesses, and CEBA is just one example of it, are basically in some measure, turning small businesses into a bit of a tax haven, and creating incentives to stay small," Corak said.

    This report by The Canadian Press was first published July 11, 2023.

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    BREAKING

    BREAKING

    Three men were injured after a man armed with a knife entered a Montreal-area Islamic cultural centre Friday afternoon.

    A 15-year-old boy who was the subject of an emergency alert in New Brunswick has been arrested.

    Police have arrested an 18-year-old woman who allegedly stole a Porche and then ran over its owner in an incident that was captured on video.

    Since she was a young girl growing up in Vancouver, Ginny Lam says her mom Yat Hei Law made it very clear she favoured her son William, because he was her male heir.

    The parents of a teenager who died after allegedly consuming the poisonous products of a Mississauga man are now suing him, as well as several doctors involved in her care.

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    Canada

    • BREAKING

      BREAKING

      Three men were injured after a man armed with a knife entered a Montreal-area Islamic cultural centre Friday afternoon.

    • Police have arrested an 18-year-old woman who allegedly stole a Porche and then ran over its owner in an incident that was captured on video.

    • The parents of a teenager who died after allegedly consuming the poisonous products of a Mississauga man are now suing him, as well as several doctors involved in her care.

    • The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.

    • Relatives of a 60-year-old man who took his own life in a Nova Scotia jail after long periods of confinement in his cell have launched a lawsuit against the province.

    • A 15-year-old boy who was the subject of an emergency alert in New Brunswick has been arrested.

    World

    Politics

    Health

    • A Nova Scotia woman has applied for a medically assisted death, saying after years of battling to receive out-of-country surgery for an illness that causes 'indescribable' pain, she struggles to maintain the will to live.

    Sci-Tech

    Entertainment

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    • It will be the last show for longtime children's TV star Ron (Buck Shot) Barge as a memorial is held Friday in Calgary.

    Business

    Lifestyle

    Sports

    • Agreement in principle has been reached to build a new NHL arena at LeBreton Flats has been reached between the Ottawa Senators and the National Capital Commission (NCC), the two sides announced Friday.

    • F1 star Max Verstappen punished over bad word

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    • The Winnipeg Jets have some huge holes to fill on both offence and defence this season.

    Autos

    Local Spotlight

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    A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.

    Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.

    The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.

    The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.

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    A Good Samaritan in New Brunswick has replaced a man's stolen bottle cart so he can continue to collect cans and bottles in his Moncton neighbourhood.

    David Krumholtz, known for roles like Bernard the Elf in The Santa Clause and physicist Isidor Rabi in Oppenheimer, has spent the latter part of his summer filming horror flick Altar in Winnipeg. He says Winnipeg is the most movie-savvy town he's ever been in.

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    • New Democrat Leader David Eby has launched his British Columbia election campaign a day early, making the key battle ground of Surrey his first stop.

    • Police have arrested an 18-year-old woman who allegedly stole a Porche and then ran over its owner in an incident that was captured on video.

    • The parents of a teenager who died after allegedly consuming the poisonous products of a Mississauga man are now suing him, as well as several doctors involved in her care.

    • Michael Ford, Ontario's minister of citizenship and multiculturalism, says he is taking a leave of absence from cabinet to prioritize his health.

    • Calgary Mayor Jyoti Gondek is urging the Alberta government to preserve pieces of the massive Green Line transit project now being dissolved.

    • It will be the last show for longtime children's TV star Ron (Buck Shot) Barge as a memorial is held Friday in Calgary.

    • It's billed as 'Canada’s Largest Halloween Festival' and it's taken weeks to set up over 10,000 carved pumpkins that transform the WinSport bobsleigh track into a spooky spectacle.

    • Agreement in principle has been reached to build a new NHL arena at LeBreton Flats has been reached between the Ottawa Senators and the National Capital Commission (NCC), the two sides announced Friday.

    • Maplewood Secondary School is scheduled to open Monday after receiving a permit Friday morning allowing 50 per cent of the building to be occupied.

    • Police in western Quebec say a driver has been arrested after almost crashing into a school bus near La Pêche Friday morning.

    • BREAKING

      BREAKING

      Three men were injured after a man armed with a knife entered a Montreal-area Islamic cultural centre Friday afternoon.

    • A new garden and microforest, years in the making, have been inaugurated at John Abbott College in Montreal.

    • The Montreal couple from Mexico and their three children facing deportation have received a temporary residence permit.

    • Mounties say there was an increased police presence in the Emerald Hills area of Sherwood Park on Friday morning as officers searched for a man who is wanted by police.

    • There are plenty of fun happenings in Edmonton this weekend. It's time to savour that last little bit of the summer season before the leaves really start coming down.

    • Alberta Health Services says an E. coli outbreak at a daycare in Blackfalds has ended.

    • A 15-year-old boy who was the subject of an emergency alert in New Brunswick has been arrested.

    • Relatives of a 60-year-old man who took his own life in a Nova Scotia jail after long periods of confinement in his cell have launched a lawsuit against the province.

    • Family, friends and fans of late hip hop artist and battle rapper, Pat Stay will gather at events held in his honour on Saturday and Sunday.

    • The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.

    • A Manitoba veterinary clinic has two new ways of figuring out what’s causing a horse to be lame.

    • Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.

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      A large police presence can be seen outside Regina’s Miller High School on Friday afternoon.

    • A 21-year-old man from Codette, Sask. is facing numerous charges in connection to a fatal crash near Wapella, Sask. Wednesday night that claimed the life of a 22-year-old Alberta woman.

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    • Levels of hydrogen sulfide gas are being monitored at Brantford Collegiate Institute after a leak in their geothermal system.

    • Police have arrested an 18-year-old woman who allegedly stole a Porche and then ran over its owner in an incident that was captured on video.

    • The second-degree murder trial of Thomas Hamp is being adjourned until December so an expert witness central to the trial can testify.

    • A 69-year-old woman from Outlook, Saskatchewan is dead and three people are injured after a truck and SUV collided on Highway 15 on Thursday.

    • A garage fire in Saskatoon’s Willows neighbourhood on Friday narrowly missed igniting an attached home, according to the fire department.

    • Emergency crews in northern Ontario found the bodies of four people inside a home where a fire broke out Thursday night.

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    • A 26-year-old driver from Surrey, B.C., has been charged with three counts of criminal negligence causing death and bodily harm in a crash that killed two youths in northern Ontario last year.

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    • A new outdoor music festival is launching this weekend in London - tickets are still available for the inaugural Fairway Fest at East Park.

    • Provincial police are investigating vandalism in Huntsville after the "senseless destruction" of flower displays along Main Street East.

    • A 17-year-old from Markham is facing serious charges after an August 11 shooting at a party in Caledon.

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    • Windsor police say a 25-year-old mother has been charged with the drowning death of her 5-year-old child in the family’s backyard pool.

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    • The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.

    • Animal protection officers in British Columbia have rescued three pit bulls – including one that gave birth to 10 puppies – from a rat-infested home in Kelowna.

    • A Vulcan, Alta., man has been charged with a Lethbridge woman's murder after her body was found in the Oyen area.

    • A Lethbridge couple got a good reminder as to why you should keep your vehicle doors locked at all times.

    • Lethbridge residents who live near the police range can expect to hear plenty of shots fired Wednesday and Thursday.

    • A 26-year-old driver from Surrey, B.C., has been charged with three counts of criminal negligence causing death and bodily harm in a crash that killed two youths in northern Ontario last year.

    • Ontario Provincial Police say three suspects from southern Ontario have been charged and drugs worth $300,000 have been seized following a traffic stop Sept. 16.

    • A Brampton driver, 27, was charged this week when northern Ontario police stopped the SUV he was driving on Highway 17 after a reported shooting and found more than $100,000 in cash.

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