The Surrey Board of Trade sent out a survey to its members asking for their thoughts on the Canada Emergency Business Account (CEBA) loan repayment requirements.
“Initial responses show that our members who took out a CEBA loan during the pandemic indicated that the payback mechanism is negatively impacting their businesses,” said Anita Huberman, President & CEO of the Surrey Board of Trade. “Not only did some businesses indicate they have had to lay off employees, but some may also even need to close their business altogether. The current economic environment is that of limited growth, and expecting small businesses to pay back this loan at this time is going to further put a strain on small businesses.”
The report highlights that businesses are experiencing difficulties as they try to come up with ways to repay the loan. Some revealed that they will have to lay off employees, scale down their business, close their business, or take out other private loans to pay back the CEBA loan and address other rising cost pressures.
The Canada Emergency Business Account (CEBA) loan repayment has proven to be a double-edged sword for businesses, inflicting negative impacts that ripple through various sectors of the economy. As some businesses grapple with the financial burden of repaying these emergency loans, a disconcerting trend emerges, marked by closures, stalled expansion plans, employee layoffs, and a general scaling down of operations.
Read the full report here: https://businessinsurrey.com/wp-content/uploads/2024/01/FULL-REPORT-SURREY-BOARD-OF-TRADE-SURVEY-REPORT.pdf
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Anita Huberman, 604-634-0342, anita@businessinsurrey.com
