Taxpayers will lose $2.4 billion under a pandemic loan relief program, records show. The multi-billion loss was projected, though cabinet extended a payment holiday for business borrowers to Dec. 31, 2023..Projected write-offs under the $49.2 billion Canada Emergency Business Account program were requested by Conservative MP John Williamson (New Brunswick Southwest). The MP asked for figures on “the dollar amount of Canada Emergency Business Account loans projected to be written off as bad debt or other reasons such as fraud.”.Cabinet in an Inquiry Of Ministry tabled in the House of Commons put the figure at $2.4 billion, though loans are not repayable for more than a year..“The dollar value of loans written off to date is $1.3 million,” said the Inquiry. “Financial institutions administer the program and can only write off if the loan is to a borrowing customer and the financial institution is writing off some or all of its own loan.”.According to Blacklock's Reporter, Parliament approved the program to aid small businesses affected by pandemic lockdown orders. Initial offers of $40,000 interest-free loans were later expanded to $60,000 with a third forgiven, a maximum $20,000, on final repayment..“I want to assure Canadian businesses we’ve had your back from day one,” Small Business Minister Mary Ng said last January in extending a repayment deadline..“We are going to continue to do that. We want to make sure we continue to work together so that we can get through his pandemic.”.Cabinet gave no rationale for billions in write-offs. The Department of Finance also declined to explain loans paid to businesses that never qualified in the first place..The Canada Emergency Business Account program specifically excluded loans to government-run businesses. However the finance department in a November 19, 2020 Inquiry Of Ministry disclosed $203 million in loans were paid to businesses identified as “public administration.”.Conservative MP Marty Morantz (Charleswood-St. James, MB.) who requested data, said at the time the payment of loans to government-run organizations made no sense. Morantz cited a “lack of clarity” in the program..Access To Information documents show Finance Minister Chrystia Freeland’s office was similarly unaware of why benefits were paid to government-run companies..“Examples of such businesses cannot be provided without prior consent from the financial institution and the borrower,” staff wrote in a December 9, 2020 email. Federal managers were “working closely with Canadian financial institutions to deliver these loans to qualifying businesses,” it said.
Taxpayers will lose $2.4 billion under a pandemic loan relief program, records show. The multi-billion loss was projected, though cabinet extended a payment holiday for business borrowers to Dec. 31, 2023..Projected write-offs under the $49.2 billion Canada Emergency Business Account program were requested by Conservative MP John Williamson (New Brunswick Southwest). The MP asked for figures on “the dollar amount of Canada Emergency Business Account loans projected to be written off as bad debt or other reasons such as fraud.”.Cabinet in an Inquiry Of Ministry tabled in the House of Commons put the figure at $2.4 billion, though loans are not repayable for more than a year..“The dollar value of loans written off to date is $1.3 million,” said the Inquiry. “Financial institutions administer the program and can only write off if the loan is to a borrowing customer and the financial institution is writing off some or all of its own loan.”.According to Blacklock's Reporter, Parliament approved the program to aid small businesses affected by pandemic lockdown orders. Initial offers of $40,000 interest-free loans were later expanded to $60,000 with a third forgiven, a maximum $20,000, on final repayment..“I want to assure Canadian businesses we’ve had your back from day one,” Small Business Minister Mary Ng said last January in extending a repayment deadline..“We are going to continue to do that. We want to make sure we continue to work together so that we can get through his pandemic.”.Cabinet gave no rationale for billions in write-offs. The Department of Finance also declined to explain loans paid to businesses that never qualified in the first place..The Canada Emergency Business Account program specifically excluded loans to government-run businesses. However the finance department in a November 19, 2020 Inquiry Of Ministry disclosed $203 million in loans were paid to businesses identified as “public administration.”.Conservative MP Marty Morantz (Charleswood-St. James, MB.) who requested data, said at the time the payment of loans to government-run organizations made no sense. Morantz cited a “lack of clarity” in the program..Access To Information documents show Finance Minister Chrystia Freeland’s office was similarly unaware of why benefits were paid to government-run companies..“Examples of such businesses cannot be provided without prior consent from the financial institution and the borrower,” staff wrote in a December 9, 2020 email. Federal managers were “working closely with Canadian financial institutions to deliver these loans to qualifying businesses,” it said.
