The UCP government sent federal Finance Minister Chrystia Freeland some advice Friday and a warning on behalf of the Canadian economy..Alberta Minister of Finance Nate Horner sent a letter to Freeland with a warning that the risk of Canada falling deeper into a recession is elevated for the next 12 months.."The federal Canada Emergency Business Account (CEBA) was instrumental in supporting business continuity of small and medium-sized businesses in Canada," Horner wrote in the letter.."Through this program, over 125,000 Alberta businesses received interest-free loans and were able to survive the economic hardship brought about by the pandemic."."These interest-free loans need to be repaid by the end of 2023, or borrowers would forfeit the loan forgiveness of up to $20,000.".Horner said any outstanding loans would also become interest-bearing starting in 2024.."However, the economic challenges faced by Canadians are not over. From our businesses and business groups, such as the Canada Federation of Independent Businesses (CFIB) and Restaurants Canada (RC), we hear that many firms are still facing difficulties, including below-normal revenues and rising costs," Horner warned.."Unprecedented monetary policy tightening and tighter lending conditions aggravate the challenges faced by entrepreneurs. The risk of a recession in Canada within the next 12 months remains elevated and now is not the time to reduce support for small businesses and job creators.".Horner then "urged" Freeland to extend the grace period or offer a gradual phase-out period with partial loan forgiveness still available to encourage timely repayment.."I would be happy to have a conversation with you to discuss potential options," Horner said.
