CEBA Loan Repayment Survey Results
The Ontario Business Improvement Area Association (OBIAA) recently conducted a survey of 529 businesses. The OBIAA survey found that 88% of businesses stating the CEBA Loan Repayment will negatively impact their business, 66% stating they will not be able to invest in their business towards growth and 46% note they will be unable to expand their business. Sadly, 37% indicated that it will require laying off staff. Significantly, 42% stated that their business may be forced to close their business.
In a recent Canadian Federation of Independent Business report, their findings are hauntingly similar:
Of the nine in ten small businesses who used CEBA, three quarters accessed loans between $40,001 and $60,000, while one quarter received loans of up to $40,000.
Only 10% of CEBA users have repaid their loans.
A total of 43% of CEBA users risk missing the current repayment deadline by end of 2023. Small businesses in the arts, recreation, and information (62%), hospitality (61%) and social services sectors (46%) are most likely to miss the current CEBA deadline.
The smallest businesses with 0-4 employees are the most likely to miss the repayment deadline (49%)
Even among the 47% of small business owners who indicate they will meet the 2023 deadline, half say they will struggle to do so, and two-thirds would like to see an extension of the repayment deadline.
FULL SURVEY REPORT:
