N.B. businesses hoping for CEBA repayment extension to stay alive

KarenMersereau says her business still hasn't recovered from the economic impact of the COVID-19 pandemic andshe worries the looming deadline of CEBA repayments could damage her business, and many others.

"We're prepared to pay back the loan, but we're not recovered from COVID. So where are we going to find the resources to pay that money back?" said Mersereau, the co-owner of the Hotel Paulin in Caraquet.

"What's going to happen is a lot of small businesses are going to close down and they may not reopen."

The Hotel Paulin is one of many small and medium-sized businesses that received partially forgivable loans of up to $60,000 during the hard times brought on by the pandemic, when many businesses were forced to close or lost money because of restrictions.

But if Mersereau and other business owners want part of their loan forgiven, they will need to pay back what they owe or prove they've applied for refinancing with a financial institution by Jan. 18, 2024. Mersereau says she hasn't had the revenue to do that.

According to the Canadian Federation Of Independent Business, there were about 12,000 businesses in New Brunswick that took loans, adding up to $648 million.

Frdric Gionet, a senior policy analyst in the Atlantic region for the Canadian Federation Of Independent Business, says hard-hit sectors such as hospitality, tourismand restaurants are hoping for a strong Christmas in order to meet the deadline.

"Business owners might just give up at some point," said Gionet. "They just have tried everything and cannot do any more. So that's really what is at risk."

Pleafor extension

Morgan Peters,the chief executive officer of the Fredericton Chamber of Commerce.gives a lot of credit to the federal government for moving quickly to offer the CEBA to businesses.

"These loans were a lifeline at that time and surely got some businesses through their toughest times," said Peters.

"But not everyone has recovered at the same rate and some of them need a little bit more time to pay that back."

He's advocating for an extension of an additional year past that Jan. 18 date. The deadline has already been extended twice. It was delayed for a year in 2022, and then another 18 days earlier this year.

Peters says businesses are still facing a lot of challenges because of the pandemic. He says many customers have stuck with online shopping, and some businesses are still struggling with getting enough employees.

According to the Canadian Chamber of Commerce, which surveyed about 16,000 businesses, around 24 per cent of businesses that took a loan won'tbe able to pay it back by the Jan. 18 deadline.

"Some [businesses] might be able to refinance, possibly at higher rates," said Peters. "Some of them will probably choose to close altogether. And that's, of course, [the] worst-case scenario that we're trying to avoid right now."

It all has Mersereau feeling burned out. She's been cleaning rooms, doing laundryand serving breakfast, all while managing the businessbecause she doesn't have the staff she needs.

"I'm in recovery mode. I'm trying to get caught up. And it's going to take me years to do this," said Mersereau.