Nearly five years after Ontario came into blocking to reduce the distribution of Covid-19, small businesses are still struggling to pay off their Emergency Business Account in Canada (CEBA).
Katie Reed, who owns endless pet eating tails in Missisauga for 20 years, says she is afraid he may need to close.
“Everyone wants to stay. But, unfortunately, between this loan, the rent is so high and buying the food … It was a little difficult,” she told CBC Toronto.
Reed says he will be “devastated” if he has to leave his regular clientele and declare bankruptcy.
The CEBA program opened for applications on April 9, 2020, hoping to support the business during the pandemic. Originally determined by a $ 40,000 limit per company, it later has increased to $ 60,000 and provides over $ 49 billion to nearly $ 900,000 businesses.
The loan was available through various financial institutions, all of which had different ways to provide – from credit cards, to checks and a direct deposit.
As of December 31, 2024, there are still 161,000 small businesses due to their loans, Export Development Canada (EDC) told CBC Toronto in an email statement. This equals a total of nearly $ 7.8 billion.
The CEBA program opened for applications on April 9, 2020, hoping to support the business during the pandemic. Originally determined by a $ 40,000 limit per company, it later has increased to $ 60,000 and provides over $ 49 billion to nearly $ 900,000 businesses. (Nathan Dennet/Canadian Press)
Reed borrowed from Seba $ 40,000 with the Royal Bank of Canada on the recommendation of his then report. She has not yet been able to return it and attributes that to more Canadians who choose to shop online and difficulties in providing pets and animal care products.
“I think online shopping has completely destroyed not only my business, but I think many companies,” she said.
There are various reasons why businesses have failed to bounce after the pandemic, says Ryan Mallo, Vice President of Legislative Affairs at the Canadian Federation for Independent Business (CFIB).
“We had interest rates to increase, the cost of living, the challenges of accessibility-the people did not spend the way they were before pandemic,” Mulow said.
Paola Girotti, owner and founder of Sugarmoon Salon, borrowed Ceba $ 60,000 with TD Bank, but that wasn’t enough to keep his three places in Toronto.
“We once managed to get only one grant because it was done in a corporation, not by location,” she said.
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During the pandemic, Giroti had to close one of his salons in Toronto, leaving her with salons only in Danfort and in Blur West. But unlike Reed, she has since been able to recover by making more capital investments in salon salons or needing additional maintenance.
“We have a good model for success,” she said.
However, she says that the repayment of Seba’s loan is not her main concern.
“My first priority is to make sure our employees are sure we are able to pay them,” Giroti said.
She says she wants the government to forgive the loan.
“They just have to allow the business to wipe the clean slate,” Giroti said.
Reed agrees that it is not unfair for the business to pay money from Seba.
“There were many frauds that the government missed,” she said. “I feel they come after the people who work most strongly, those who are there [mark] in the community. “
A spokesman for EDC told CBC Toronto in a statement that the center understands the financial struggle, therefore its extension of the repayment and repayment period, the expansion of the eligibility criteria and financial support are increasing.
“Since EDC works with Canadian exporters, many of which are small -sized companies, we are sensitive to the situation in which some of them face the pandemic,” the statement said.
Endless Tails’ pet feeding center is located in Missisauga, On. He sells pet products, from food to toys and clothes, and also houses abandoned cats and helps them look for a home forever. (Vedran Lesic/CBC)
As the country approaches the next federal election, Mallough says small businesses and CFIB will look for what support each party plans to apply to the sector.
“I think our focus on all countries is: What do you do to improve your business and climate in Canada better? What do you do to help with the more taxes, to help mobility of labor, to deal with the challenges of qualified workers? ” he said.
Regardless of the election result, Reed recommends shopping locally.
“After another 10 to 15 years, your children will not know what a small independent store is. They will not exist because it is becoming increasingly difficult to survive,” she said.
In the meantime, Giroti says her own children are probably “horrified” by the prospect of opening their own business.
“I hire 54 great people,” Giroti said. “And every day it scares me that something like this can happen again.”
