As the Canadian government's pandemic loan program comes under scrutiny, records reveal that federal managers will begin assessing the extent of defaults on June 18. Blacklock's Reporter says the Canada Emergency Business Account Program, managed by Export Development Canada, has outstanding principal amounts totaling $31.5 billion.Of the 898,271 loans approved since the pandemic's onset, only 289,000 have been repaid in full, with an additional 77,000 partially repaid. The program, introduced in 2020, offered small businesses interest-free loans of up to $40,000, with a quarter forgiven on repayment. Later expanded to $60,000 with a third forgiven on repayment, unpaid loans now accrue five percent interest until 2026 without forgiveness.Repayment rates vary significantly across provinces, ranging from 36% in Ontario to a mere 0.4% in Prince Edward Island. Conservative MP Tony Baldinelli's inquiry revealed that few loans have been repaid in full, with some provinces reporting repayment rates as low as one percent.The government has yet to send delinquent loans to collection, but collection efforts are expected to begin soon. An audit of the program's management by Export Development Canada's consultant, Accenture PLC, is already underway. Auditor General Karen Hogan confirmed that her office is reviewing the program, with a report expected by November.
As the Canadian government's pandemic loan program comes under scrutiny, records reveal that federal managers will begin assessing the extent of defaults on June 18. Blacklock's Reporter says the Canada Emergency Business Account Program, managed by Export Development Canada, has outstanding principal amounts totaling $31.5 billion.Of the 898,271 loans approved since the pandemic's onset, only 289,000 have been repaid in full, with an additional 77,000 partially repaid. The program, introduced in 2020, offered small businesses interest-free loans of up to $40,000, with a quarter forgiven on repayment. Later expanded to $60,000 with a third forgiven on repayment, unpaid loans now accrue five percent interest until 2026 without forgiveness.Repayment rates vary significantly across provinces, ranging from 36% in Ontario to a mere 0.4% in Prince Edward Island. Conservative MP Tony Baldinelli's inquiry revealed that few loans have been repaid in full, with some provinces reporting repayment rates as low as one percent.The government has yet to send delinquent loans to collection, but collection efforts are expected to begin soon. An audit of the program's management by Export Development Canada's consultant, Accenture PLC, is already underway. Auditor General Karen Hogan confirmed that her office is reviewing the program, with a report expected by November.
