About 45,000 small and medium-sized enterprises (SMEs) in Quebec and more than 200,000 across the country are at risk of closing their doors due to their inability to repay the federal emergency loan granted during the COVD-19 pandemic.
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Prime Minister Justin Trudeau reiterated on Wednesday that there will be no extension of the January 18 repayment of the emergency loan to Canadian companies.
“I have to close, but that’s a shame because I’ve been in business for 46 years. I survived, I taught people to work, I am ready to work. I'm 67 years old and if I close my doors, I won't be able to live,” says Ricardo Castreje, owner of Ricardo Furniture Restoration Workshop in Montreal.
“Nearly 25% of SMEs have not paid anything and will not be able to,” fears the Canadian Federation of Independent Business (CFIB).
“35% of SMEs have repaid their loan and around 40% said in a survey in December that they were able to repay but had not done so,” says Jasmin Guénette from the CFIB.
Keep in mind that businesses have until tomorrow to repay and refinance the loans, otherwise they will lose the subsidized portion of the loan, which ranges from $10,000 to $20,000.
- Listen to the interview Christina Santini, Director of National Affairs at the Canadian Federation of Independent Business with Mario Dumont on QUB: