Break or burden: Que. businesses taking loans to pay back CEBA by deadline
Thursday is the deadline for businesses to pay back the Canada Emergency Business Account (CEBA) loans if they want to take care of federal loan forgiveness.
The deadline has some local businesses scrambling to pay it off, including taking out other loans to pay for this one.
At Backbone Bouldering Centre in Bromont, about an hour southeast of Montreal, paying their CEBA loan back was an uphill climb.
"We paid it back, but with a new loan from our bank," said manager Frederique Marseille.
Those who didn't pay back $40,000 of the $60,000 loan by today were inelligble to get back the $20,000 of loan forgiveness and pay no interest.
Backbone management borrowed from a bank to get that forgiveness, but now have to pay a higher interest rate.
"They had to offer us a new loan, with any interest rate, with any kind of solution, and we just had to sign," said Marseille. "We paid a loan with a worse loan."
Backbone Climbing Centre manager Frederique Marseille.
Schreter's Clothing on Saint Laurent Boulevard in Montreal planned for year to meet the deadline.
"I paid back about 10 days ago," said owner Steve Schreter.
Around 900,000 businesses took advantage of the program and those that didn't pay the $40,000 portion of the loan back will now have to pay the loan in full at five per cent interest over three years.
Schreter said that wasn't an option.
"It had to come from different places, unfortunately, business hasn't been that great since the pandemic," he said.
The CEBA deadline has been pushed back twice, and this week Prime Minister Justin Trudeau said that it would not be pushed again.
"We understand that things — even as the economy has bounced back from COVID — continue to be challenging, which is why we extended, twice, the repayment deadline for the CEBA loans," said Trudeau.
"But we are now far enough from the pandemic that we do have to wrap up pandemic programs," Trudeau said. "Pandemic supports, we all know, had to end at one point."
At Backbone, Marseille said what was billed as a break has turned into a burden.
"That's debt on debt on debt, so it was never a gift from the government to help us during the pandemic," she said.
CTVNews.ca Top Stories
Here's where Canadians are living abroad: report
A recent report sheds light on Canadians living abroad--estimated at around four million people in 2016—and the public policies that impact them.
'We are declaring our readiness': No decision made yet as Poland declares it's ready to host nuclear weapons
Polish President Andrzej Duda says while no decision has been made around whether Poland will host nuclear weapons as part of an expansion of the NATO alliance’s nuclear sharing program, his country is willing and prepared to do so.
Harvey Weinstein hospitalized after return to New York from upstate prison
Harvey Weinstein’s lawyer said Saturday that the onetime movie mogul has been hospitalized for a battery of tests after his return to New York City following an appeals court ruling nullifying his 2020 rape conviction.
Deadly six-vehicle crash on Highway 400 sparked by road rage incident
One person was killed in a six-vehicle crash on Highway 400 in Innisfil Friday evening.
Invasive and toxic hammerhead worms make themselves at home in Ontario
Ontario is now home to an invasive and toxic worm species that can grow up to three feet long and can be dangerous to small animals and pets.
Central Alberta queer groups react to request from Red Deer-South to reinstate Jennifer Johnson to UCP caucus
A number of LGBQT+2s groups in Central Alberta are pushing back against a request from the Red Deer South UCP constituency to reinstate MLA Jennifer Johnson into the UCP caucus.
Opinion I just don't get Taylor Swift
It's one thing to say you like Taylor Swift and her music, but don't blame CNN's AJ Willingham's when she says she just 'doesn't get' the global phenomenon.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
First court appearance for boy and girl charged in death of Halifax 16-year-old
A girl and a boy, both 14 years old, made their first appearance today in a Halifax courtroom, where they each face a second-degree murder charge in the stabbing death of a 16-year-old high school student.