'Absolutely not ready': Sask. businesses scramble to pay back CEBA loans as deadline passes

Thousands of Saskatchewan businesses scrambled on Thursday to repay Canada Emergency Business Account (CEBA) loans before the deadline, owing a combined $1.6 billion to the federal government.

The CEBA loans were given out to business owners during the pandemic to help them wade through the challenges brought on by government-controlled shutdowns and restrictions.

Calls for a deadline extension have come often over the past few months with many businesses saying they cannot pay the loan back yet.

An estimated 19,000 Saskatchewan businesses took out federal government loans of up to $60,000 during the pandemic, $20,000 is forgivable if repaid by the Jan. 18 deadline.

However, heading into the deadline it was estimated that 17 per cent would not be able to pay the loan back on time.

“So we represent 230 local businesses just in the Regina and Moose Jaw area and the word on the street about these CEBA loans is the vast majority of businesses are absolutely not ready to pay them back right now,” Dan Benish from Barterpay said.

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The federal government has listened to calls from small business owners before and granted an extension but said it won’t do that again.

“Businesses have a number of different options if they’re facing challenges around the CEBA loans,” Prime Minister Justin Trudeau said.

“Small and medium businesses are the heart and soul of any economy in any community and they’re just coming out of the recovery phase and these payments are now taking away opportunities for success and growth,” CEO of the Regina and District Chamber of Commerce Tony Playter said.

Regina’s Prairie Dog Magazine and Saskatoon’s Planet S appealed to readers for $60,000 in donations to repay Ottawa. Readers saved the publications from the more immediate financial crisis.

“It’s been a good day and a good week. We are in this cold weather, we are warned by the love and support we have been shown and it’s been fantastic and this was not a frivolous request. This had to happen,” Stephen Whitworth from Prairie Dog Magazine said.

Businesses that took out loans to repay the federal government now have that added debt to contend with adding to their post-pandemic financial struggles.