(CKOM News)

By CKOM News

finance

Loan repayments could lead to closures of 8,000 small Saskatchewan businesses

Jun 17, 2023 | 10:31 AM

Some small businesses in Saskatchewan may be closing at the end of next year.

A projected 8,000 small businesses in the province are in danger of not being able to repay their federal business loans. The businesses that are unable to pay would need to close.

The Canada Emergency Business Account (CEBA) loan is due at the end of this year. Many small businesses just won’t be able to repay it by that time.

Brianna Solberg, the director of legislative affairs for the Canadian Federation of Independent Business (CFIB), said many businesses that are struggling just need more time.

“Those small businesses that fought three hard years just to survive the pandemic are still facing significant challenges on their road to recovery,” said Solberg, whose organization has 4,000 businesses as members.

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Solberg conducted a survey with the CFIB which concluded that 19 per cent of all small businesses could close in Saskatchewan.
The loan repayment date was already extended by the federal government once, but Solberg said it’s necessary for the federal government to extend it further.

“The message is loud and clear from small businesses that they need more time and obviously they appreciate the deadline has been extended once already,” said Solberg. “But the situation is still dire.”

Solberg says financial institutions still have time to delay repayments if the federal government decides to grant businesses more time.

If 8,000 Saskatchewan small businesses close, that would leave many unemployed, said Solberg. She explained that certain sectors would be hit harder than others.

“Particularly in the arts, recreation, hospitality sectors — they’ll struggle to make this deadline,” said Solberg.