As shown in Figure 11, four provinces — Québec, Ontario, Alberta and British Columbia — reported the highest number of CCAA proceedings in 2023. This is consistent with historical trends.
Figure 11: CCAA Proceedings by Highest Volume Provinces
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British Columbia
The Outsized Role of Small Business in Canada According to Innovation, Science and Economic Development Canada, there were about 1.22 million small businesses with employees in Canada at the start of 2023. These small businesses employ 5.7 million individuals in Canada, which accounts for 46.8% of the total private labour force. Approximately 900,000 small businesses faced a deadline on January 18, 2024 to repay interest-free Canada Emergency Business Account (CEBA) loans of CAD$60,000 made available to them during the pandemic. Any business that repays the bulk of the loan by January 18th can see up to $20,000 of the loan forgiven (Source: CEBA Program). By February 2024, the Minister of Finance estimated that 25%, or 180,000 of these businesses, have not yet repaid their CEBA loans. These businesses must now make monthly payments for two years at 5% annual interest. Of the estimated 720,000 businesses that have repaid the CEBA loan, the Canadian Federation of Independent Businesses estimates that 31%, or 225,000 small businesses, took out a bank loan, at prevalent high interest rates, to repay its CEBA loan (source: Reuters). Statistics Canada estimates the number of businesses that open, close or continue operations across Canada on a monthly basis. Between January and June 2023, the number of businesses that closed per month averaged 42,825 enterprises. For the second half of year, excluding December 2023, the average monthly rate of business closures has grown to 43,168 closures. This difference can indicate increased pressure faced by businesses due to prolonged periods of economic uncertainty and inflationary pressures.
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Davies | dwpv.com
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