The Surrey Board of Trade’s survey on the impacts of the Canada Emergency Business Account (CEBA) loan repayment requirements released Tuesday (Jan. 16) reveals 60 per cent of its members who responded said they have experienced challenges in paying back the loan.
Nearly 900,000 organizations in Canada applied for and received a CEBA loan during the COVID-19 pandemic. The federal program offered up to $60,000 in interest-free loans to help businesses and non-profits survive related shutdowns and slowdowns.
“The CEBA loan repayment challenge, coupled with the surge in operating costs, underscores the delicate balance that businesses must strike in order to remain resilient in an evolving economic landscape,” reads the report.
Over 66 per cent of respondents with a CEBA loan stated they must pay back the loan in full by Thursday (Jan. 18). 33 per cent of those indicated they would have difficulties repaying the full amount by then.
“Initial responses show that our members who took out a CEBA loan during the pandemic indicated that the payback mechanism is negatively impacting their businesses,” said Anita Huberman, President & CEO of the Surrey Board of Trade.
“Not only did some businesses indicate they have had to lay off employees, but some may also even need to close their business altogether. The current economic environment is that of limited growth, and expecting small businesses to pay back this loan at this time is going to further put a strain on small businesses.”
The board of trade has roughly 6,000 members. The report did not state how many responded to the survey.
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-With files from the Canadian Press