October 20, 2023

Langley, BC - The Greater Langley Chamber of Commerce, one of the province’s largest and most active chambers of commerce is applauding Premier David Eby who today joined the other provincial and territorial Premiers in writing a joint letter calling on the federal government to extend the federal CEBA loan repayment schedule for small businesses.  The Langley Chamber, representing 1,000 businesses, says that without such an extension, many businesses will struggle to meet the deadline and end up with thousands more in debt as they lose the forgivable portion of the loan, putting their futures at risk.

In Langley, according to a recent Chamber survey, to try and repay the loan 24% of businesses expected to use their personal savings, 20% would take on personal debt, and 30% expect to restrict hiring or business spending/investment.  Concerningly, nearly 1 in 4 (23%) did not expect to make the repayment deadline at all.

Launched during the pandemic, the CEBA program provided interest-free loans of up to $60,000 to qualifying businesses.  Repaying the loan by the deadline provides businesses with loan forgiveness of up to $20,000, but failing to do so would see that forgiveness lost and the program would become a traditional loan with interest, adding to the financial burdens of BC small businesses.  

122,890 businesses in BC were approved for these loans to help with the impact of the COVID-19 pandemic, but since have also faced supply chain disruptions, rising prices and inflation, and soaring labour costs, resulting in many businesses concerned with being able to meet the current repayment schedule of January 18, 2024.

“Unless the government acts to extend this deadline, a lot of local businesses will face the prospect of losing the forgivable portion and could then suddenly have tens of thousands of additional debt to bear,” says Cory Redekop, CEO of the Greater Langley Chamber of Commerce.   “This will be fatal for some businesses.”

Representing 1,000 businesses from across Langley Township, Langley City and the broader region, the Greater Langley Chamber of Commerce believes that granting businesses additional time to repay these loans will alleviate a financial burden on employers and contribute to the overall stability of the local economy. "Given everything small business does and means to our communities, I fail to believe we can't get a real solution to this issue that protects Langley businesses," adds Redekop.
 
See the Premiers' joint letter below: