Winnipeg reacts to CEBA loan deadline
Posted January 18, 2024 5:08 pm.
Last Updated January 18, 2024 7:54 pm.
The deadline to repay back the Canada Emergency Business Account loan prior to interest accruing on them is here, but some businesses say they’re not ready.
Riley Grace is a variety store in Winnipeg’s Corydon neighbourhood. The business just paid back their CEBA loan on Jan. 12, but it now also means they have less money in their bank account.
“It was helpful, but I don’t know if anybody is ready to pay it back today,” said Lauren Wittman the co-owner of Riley Grace.
“The funds that we make in the busy season, which is November and December, usually we hold onto that to help us through the slowest months––January and February. We did pay off the loan but now we don’t have that reservoir that we usually plan to have.”
It’s the same situation over at Galaxy Printing, where the business also managed to pay off its CEBA loan ahead of Thursday.
Chenoa Cox, a co-owner of Galaxy Printing says while business has been picking up, their ability to purchase new equipment or hire new staff is limited after paying off their loan.
“We were looking at our bank account and it definitely makes an impact with how we are going to be running our business for this upcoming year. It will be very difficult to reinvest in our business and help us grow,” said Cox.
RELATED: Deadline to get partial CEBA forgiveness arrives as business groups warn of closures
But for gym owner Angelo Manfredi, he still has about $4,000 left on his loan.
“Well, it’s kind of a double-edged sword in the sense that they close you down and then they give you money to stay afloat but at the same time if I was allowed to operate I wouldn’t need it,” said Manfredi.
According to the Canadian Federation of Independent Business over 23,000 small businesses across Manitoba took out a CEBA loan, with 17 per cent of the CFIB membership expecting not to be able to pay the loan by Thursday.
“In many ways, it is more stressful to be in business now than it was in the height of the pandemic because costs have increased, business owners have seen every line item in their budget go up,” said Brianna Solberg, the director of Legislative Affairs with Prairies and Northern Canada at the CFIB.
The CEBA loan allowed small businesses and non-profits to borrow up to $60,000 interest-free, with 33 per cent of the loan forgiven if it was repaid by Thursday.
For those trying to still take advantage of the partial loan forgiveness, companies like Merchant Growth are seeing people rush to re-finance their CEBA loans.
“It has been wild. There are a bunch of options out there. There’s a whole industry of non-bank lenders. We use technology and you can apply online. It’s just important to be aware of that because otherwise there’s a lot at stake,” said David Gens, the Founder and CEO of Merchant Growth.
