Small businesses are caught between a rock and a hard place and the squeeze is tightening
The program that was set up by the federal government to help businesses survive the COVID pandemic shutdown, are due January 18th. for those who miss the CERB deadline they will have to pay back the loan with interest of 5 percent…those who make the deadline will have $20,000 of their loan forgiven.
For Small business owners many were in the worst situation and so, many took advantage of the loan program in order to keep their employees working, but many are still struggling as they work to recover to pre-pandemic levels and simply are not in a position to be able to pay back the loan when due.
The situation for many of these small enterprises is they just don’t have the cash readily at hand and they face closure. Many of these businesses are family run and some have been around well over 50 years.
The deadline for repayment has been extended by Ottawa a couple of times and the call is still ringing loudly that these businesses need even more time to settle their account. If they are put into a position where the deadline isn’t extended, it will be a huge loss to the Canadian economy. jobs will be lost and municipal and the provincial government will be big losers because tax revenue streams will dry up.
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