(Victoria) The premiers of the provinces and territories are asking Ottawa to extend by one year, until 2025, the repayment period for interest-free loans granted during the pandemic to small businesses and non-profit organizations.

With the “Canada Emergency Business Account,” the federal government offered interest-free loans of up to $60,000 to SMEs during the COVID-19 pandemic.

In a joint letter to Prime Minister Justin Trudeau, British Columbia Premier David Eby writes that small businesses, like most other Canadians, are feeling crushed by the rising costs of housing, groceries and other daily essentials.

However, just when SMEs are starting to get their heads above water, they are facing galloping inflation and high interest rates, writes Prime Minister Eby on behalf of his counterparts.

The federal government has set January 18, 2024 as the deadline for repayment of loans made under the Emergency Account and eligible for partial loan forgiveness.

This emergency program approved 49.2 billion loans to small businesses and nonprofits during the pandemic.

The letter from the premiers of the provinces and territories follows the recent request from Doug Ford, in Ontario, and Andrew Furey, in Newfoundland and Labrador, who wanted the Bank of Canada to take into account the impact further increases in interest rates, and the potential for further increases to drive up housing costs.