Local businesses raise concerns over fast-approaching CEBA deadline

With the deadline to pay off loans for the COVID-19 pandemic era Canada Emergency Business Account, or CEBA, some local small businesses are concerned they will not be able to pay.

One Hamilton business owner says he’ll be shutting his doors if the federal government doesn’t extend the deadline to pay back his pandemic loan.

“If they don’t extend the deadline for the payment, the repayment, we will have to close.” says Jacques Long of JMS Treasure Chest.

After 12 years in business on Ottawa Street, Long says his antique store will be forced to shut down unless he has more time to pay off his CEBA loan.

“For three years we’ve been struggling, we had to reduce our prices, and we don’t even take salaries if we want to survive.”

Long and his wife Mona say the majority of their business comes from movie production companies who need antiques for movie sets in the area.

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The husband and wife expected business to bounce back last year, but say it didn’t return and in fact only worsened with the Hollywood writers strike.

While not facing a shut down like the Longs, not-for-profit community organization The Bridge says that they too are very worried about repaying and say they has to fundraise and even dip into their operating budget to cover the cost.

“We’re looking roughly around 20,000 dollars this year on top of what we normally need for our budget to kind of help fill that gap.” says Sarah Worry, a member of the group that helps prisoners reintegrate into the community.

The Bridge and the Longs aren’t the only ones concerned.

The Canadian Federation of Independent Business (CFIB) expects 22 per cent of the roughly 900,000 small businesses who took the loan will be unable to pay it back by Jan. 18.

That’s roughly 200,000 small businesses across Canada.

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“It’d be those businesses that you would sort of expect, the ones that were hit a little bit harder during the pandemic, your hospitality businesses, your gyms, your businesses that tended to be shut down for a longer period of time.” says Ryan Mallough of the federation.

Ottawa has moved back the repayment deadline twice before, but the CFIB doesn’t think it will happen again.

Nonetheless, the federation is still calling for an extension until the end of the year.

“We think that would get enough time for businesses, or for more businesses to get the money together.” said Mallough.

Back amongst his antiques, Long thinks an extra year is needed.

“Just one year, we might be able to repay the whole amount.” says Long.

CEBA offered $60,000 to qualifying small businesses to help them stay in business during the pandemic and for those who do meet the deadline, they will have $20,000 of that loan forgiven.

The CFIB says it will be keeping a close eye on what happens to the businesses that can’t pay it back and anticipate it having an impact on the economy.