Edmonton business owners on the brink of federal pandemic loan repayment cut-off

Edmonton business owners are feeling the pressure as they scramble to come up with the funds to repay government-backed pandemic loans before the looming deadline. The Canada Emergency Business Account (CEBA) was introduced in April 2020, offering interest-free loans of up to $60,000 to small- and medium-sized businesses.

With the repayment deadline set for January 18, 2024, business owners are working tirelessly to ensure they can meet the requirements to qualify for loan forgiveness. For many, this means negotiating new bank loans, dipping into personal savings, and maximizing cash flow through various strategies.

Peter Keith, co-owner of Meuwly’s catering and charcuterie market, is among those feeling the financial strain. He is exploring all options to ensure he can repay the loan on time, including promoting event ticket presales and offering bonus credit on gift cards.

The pressure is mounting for small businesses across Alberta, with many facing the difficult decision of planning an “exit strategy” if they cannot find a way to clear their CEBA debt. According to the Canadian Federation of Independent Business, one in five small businesses in Alberta could be at risk of shutting down.

As the deadline approaches, business owners are feeling the weight of the financial burden. Some, like Cheryl Schneider of No More Excuses Fitness, are seeking new loans to meet the repayment deadline, while others, like Ed Donszelmann of Otto Food and Drink, are facing the prospect of using personal funds to repay the loan.

With the future of many small businesses hanging in the balance, the pressure is on for owners to find a way to navigate the financial challenges brought on by the pandemic loans.