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
4th Indian national arrested, charged with murder of Hardeep Singh Nijjar
Homicide investigators in B.C. say murder charges have been laid against a fourth Indian national in connection to the killing of Sikh activist Hardeep Singh Nijjar outside a Surrey gurdwara last year.
Man ticketed after allegedly trespassing again at Drake's Bridle Path mansion to get his bike
A man who tried to access Drake’s Bridle Path mansion earlier this week returned to the property Saturday and was apprehended again for allegedly trespassing, Toronto police say.
Switzerland's Nemo wins 68th Eurovision Song Contest
Swiss singer Nemo won the 68th Eurovision Song Contest on Saturday night with 'The Code,' an operatic ode to the singer’s journey toward embracing their nongender identity.
Wildfire that forced evacuation of Fort Nelson, B.C., caused by tree falling on wires, mayor says
The wildfire that prompted the evacuation of more than 3,000 people near Fort Nelson, B.C., was caused by a tree falling on wires, according to the municipality's mayor.
Couple randomly attacked, 1 stabbed, by group of teens in Toronto, police say
A man has been transported to hospital after police say he was stabbed in a random attack carried out by a group of teens in Toronto on Friday night.
Israel orders new evacuations in Gaza's last refuge of Rafah as it expands military offensive
Israel ordered new evacuations in Gaza's southern city of Rafah on Saturday, forcing tens of thousands more people to leave as it prepared to expand its military operation deeper into what is considered Gaza’s last refuge.
'I am angry': Alberta farmers will continue fight over world class motorsport resort
The rolling hills leading to the hamlet of Rosebud are dotted with sprawling farms and cattle pastures -- and a sign sporting a simple message: No Race Track.
IN PICTURES Northern lights dance across the night sky in southern Ont.
From London, to Grand Bend, Collingwood and Guelph, here are some highlights of Friday night and Saturday morning's northern lights display.
Ron Ellis, who played over 1,000 games with Maple Leafs, dead at 79
Ron Ellis, who played over 1,000 games with the Toronto Maple Leafs and was a member of Canada's team at the 1972 Summit Series, has died at age 79.