Nearly five years after the onset of COVID-19 lockdowns, small businesses in Ontario are grappling with the repayment of Canada Emergency Business Account (CEBA) loans. Cathy Reid, owner of Endless Tails Pet Nutrition Centre, emphasizes her struggle due to high rent and loan repayments. The CEBA program, launched to support businesses during the pandemic, provided significant funding; however, many businesses continue to face financial challenges, with up to 161,000 still indebted, totaling approximately $7.8 billion. Reid also highlights the negative impact of online shopping on local businesses' viability.
Reid said: "Everybody wants me to stay. But, unfortunately, between this loan, rent being so high and purchasing the food, it’s been a little bit difficult."
The CEBA program opened for applications on April 9, 2020, providing over $49 billion to nearly 900,000 businesses, initially offering $40,000 loans that were later increased to $60,000.
As of December 31, 2024, 161,000 small businesses still owe money on their CEBA loans, totaling nearly $7.8 billion, highlighting ongoing struggles.
Reid attributes her inability to repay the loan to increased online shopping: "I think online shopping has totally destroyed not just my business, but I think a lot of businesses."
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