Government of Canada Responds to Auditor General of Canada’s Report on the Canada Emergency Business Account
December 2, 2024
OTTAWA, ON – The Government of Canada has released its response to the Auditor General of Canada’s (AGC) report on the Canada Emergency Business Account (CEBA). The CEBA was a key component of the government’s COVID-19 economic response, providing loans of up to $40,000 to small businesses and non-profit organizations.
In its report, the AGC found that the CEBA was generally well-managed and effective in supporting businesses during the pandemic. However, the report also raised concerns about the program’s administration, including the lack of due diligence in approving applications and the high rate of fraud.
The government’s response to the AGC’s report outlines a number of steps it is taking to address these concerns. These steps include:
- Strengthening due diligence processes: The government will implement new measures to verify the identity of applicants and ensure that they are eligible for the program.
- Increasing fraud detection and prevention: The government will work with financial institutions to improve fraud detection systems and will also increase the number of staff dedicated to investigating fraud.
- Improving program oversight: The government will establish an independent oversight body to monitor the CEBA and ensure that it is being administered fairly and efficiently.
The government also announced that it will be extending the CEBA repayment deadline until December 31, 2025. This extension will provide businesses with more time to repay their loans and will help to mitigate the impact of the pandemic on their finances.
The Minister of Finance, Chrystia Freeland, said that the government is committed to addressing the concerns raised by the AGC. “The CEBA was a critical lifeline for businesses during the pandemic, and we are committed to ensuring that the program is administered fairly and efficiently,” said Minister Freeland. “The steps we are taking will help to strengthen the program and protect taxpayers’ money.”
The AGC’s report on the CEBA is available on the AGC’s website. The government’s response to the report is available on the Department of Finance Canada’s website.
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