CEBA deadline causing stress to N.S. businesses

The financial pressure is reaching a boiling point for some as the Canada Emergency Business Account (CEBA) deadline approaches.

Julie Huode’s Halifax business, Queensberry Rules Boxing Studio, is her passion and livelihood; however, it is not where it was before the global pandemic hit three years, and now she has to repay the government loan that helped keep it open.

“Having to repay that loan in January is adding stress and just where to find the money and how to deal with that,” said Huode.

$60,000 was loaned to businesses to help with impacts of the COVID-19 lockdown.

Recipients of the loan have to pay that loan by Jan. 18 to receive a loan forgiveness of $20,000. For those who do not make this payment, they will have to pay the entire $60,000 within three years.

Huode fears she will likely have to borrow even more. “Paying more interest to have access to that $20,000, so we’d pay that 40 and get that 20 but we would have to pay a lot of interest in order to do that.

Huode is not alone.

Celtic Corner in Dartmouth, N.S., is pictured. (Hafsa Arif/CTV Atlantic)

Jeff McLatchy, owner of the Celtic Corner Public House in Dartmouth, said he has spent the year saving what he can to repay the loan, but needs more time.

“It’s not as simple as time passes and save money. If the business is not recovering at the speed of others, you cannot expect money to just appear out of nowhere.”

It's also the slowest season for many businesses.

A survey of Halifax businesses show a majority of them don’t have the money, according to the Dartmouth Downtown Business Commission. “If they don’t get some relief on this from the Government of Canada than we will see some of them closing their doors this winter.

Both Huode and McLatchy hope the deadline is extended.

It’s a financial tight-rope that owners hope to stay on top of.

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