QUESTION PERIOD — Finance
Canada Emergency Business Account
December 4, 2024
My question is for the Government Representative in the Senate.
The Auditor General of Canada released a new report on Monday that deals with the Canada Emergency Business Account, or CEBA. We know and appreciate how instrumental the CEBA was to business owners during the pandemic. In my opinion, it was a critical financial lifeline that allowed many businesses to weather the storm and uncertainty surrounding COVID-19.
What is the government doing to recoup the 17% of outstanding loans that have yet to be repaid? What is its strategy in collecting the estimated $3.5 billion that went to ineligible recipients? As reported by the Auditor General, Export Development Canada, or EDC, administered the program and disbursed $49.1 billion in total loans.
Thank you for your question, senator, and for highlighting the importance of the program that helped, as I said, nearly 900,000 small businesses keep their lights on, their doors open and their employees working. Ultimately, the cost of not acting swiftly would have been devastating to Canadians, our small businesses and our economy.
To your specific question, I understand that Export Development Canada is working with Finance Canada to consider appropriate post-funding actions, including examining legal implications and options, to recoup loan forgiveness from ineligible recipients in the non-deferrable expenses stream.
Thank you. I’m glad that efforts are being made.
The Auditor General found that “. . . EDC’s plan to collect defaulted loans lacked forecasted costing, performance management, and other key elements.” What is EDC doing in partnership with the Canada Revenue Agency, or CRA, to ensure that its collection efforts are working and that we are achieving value for money? As the Auditor General recommended, EDC should update estimates and forecasts of defaulted loans to be collected in order to provide the CRA with more precise information for its planning and resourcing.
Thank you for the question. It is my understanding that EDC has agreed with the Auditor General’s recommendations and will work with the Canada Revenue Agency, as well as Finance Canada, to implement meaningful key performance measures of collection activities for defaulted and assigned loans. Additionally, the CRA will reassess its collection plans to include key performance measures specific to resolving files in a timely manner.
