The Canadian Federation of Independent Business along with business groups and associations from across the country, have written a letter to Canada’s Finance Minister saying she needs to push the deadline back for small business repaying loans received during the pandemic.

The letter suggests a time frame of two years to the end of 2025.

The coalition of business groups say if that isn’t possible then Chrystia Freeland needs to at least grant an extension of one year for loans received through the Canada Emergency Business Account Program. Almost 900,000 CEBA loans were approved across Canada.

The letter cites high interest rates, inflation and increased labour costs which are making it “difficult for small-and-medium size businesses to keep their heads above water, let alone make any dent in the debt many had to take on to survive pandemic restrictions”.

Earlier this month the CFIB said after surveying its members, nearly a fifth could be forced to close if a repayment extension isn’t granted.