2023-11-11 10:00:00
The maintenance of motorcycles, recreational vehicles (ATVs) and tire studding no longer hold any secrets for Christian Paquette, in the field for 22 years. The owner of Atelier Christian Paquette, who received a sum of $60,000 under the CEBA during the pandemic, was convinced that he might repay his loan in cash. However, as the deadline approached, he had to apply for a personal loan. If we refuse him, he might have to say goodbye to his workshop in Saint-Hippolyte where he works in tandem with his daughter.
Posted at 5:00 a.m.
Atelier Christian Paquette went from 250,000 nails placed on mountain bikes and cars two years ago to 50,000 last year. This reduction in goodwill that the entrepreneur did not see coming partly explains why he is now struggling to repay the assistance received. To achieve this, Mr. Paquette had no choice but to request a personal loan, which would allow him to repay the sum of $40,000 on January 18 and keep $20,000 in grant, according to the rules established by the federal government. But for the moment, the entrepreneur is in uncertainty, since he still does not know if his financial institution will grant his request.
“It’s very long,” he says on the line. Everything is done over the phone. The loan officers are at home. We are no longer able to meet anyone. We sent them everything we might, if we might send the accountant, we would,” he says with a laugh.
PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS
Christan Paquette had to apply for a personal loan to repay the sum of $40,000.
If I don’t have this mortgage tranche, we may simply decide to close the door. If I close, my daughter loses her job.
Christian Paquette, owner of Atelier Christian Paquette
Backtracking. At the height of the pandemic, Ottawa created the Canadian Emergency Business Account (CEBA) to give businesses a boost. Several of them received the maximum sum of $60,000. Of this sum, to obtain a pardon of $20,000 – therefore to retain a portion as a grant – they must repay $40,000 by January 18, 2024. This deadline was first set for December 31, 2022, then one year discount. In September, the federal government once once more postponed it, but this time by a few weeks, until January. Businesses that fail to pay $40,000 by the new scheduled date will lose their subsidy and will have until December 31, 2026 to repay $60,000 at 5% interest.
This short reprieve will not change anything for many entrepreneurs, according to Juliette Brun, founder of Juliette & Chocolat. The businesswoman, who announced in August the closure of her eight establishments because she was suffocating under reimbursements, has in some way become the symbol of this crisis experienced by several SMEs.
PHOTO DENIS GERMAIN, SPECIAL COLLABORATION ARCHIVES
Juliette Brun, founder of Juliette et Chocolat, has decided to close her eight establishments.
If it’s to postpone it for 18 days, frankly, it makes no difference.
Juliette Brun, founder of Juliette & Chocolat
The case of Sylvie Masson, owner of the L’Aquavin du Cellier boutique in Terrebonne, illustrates this point well. When asked if this postponement will allow her to repay the $40,000 she owes, she responds without hesitation in the negative. “I had lots of expenses, I am unable to repay the debt. »
In business for 17 years, the entrepreneur who sells water bottles, coolers, but also personalized cups and glasses, was forced to leave her 1,800 ft2 premises due to the increase in rent. Before moving to a new location representing half the size of its previous space, it had to store its merchandise in a garage for two months. The 60-year-old woman can no longer count on the small team of three employees she had formed. She is now alone on board with her son who is toying with the idea of taking over.
PHOTO PATRICK SANFAÇON, THE PRESS
Sylvie Masson, owner of the L’Aquavin du Cellier boutique
I can’t even order my outdoor sign. It costs $3000. In the meantime, I put balloons outside.
Sylvie Masson, owner of the L’Aquavin du Cellier boutique in Terrebonne
Unanswered questions
Sylvie Masson tried to take steps with her financial institution to obtain a loan. Currently she is on hold. “There is no one who doesn’t know anything,” she says. At the Royal Bank, when I called, they told me to wait. Everyone waits following everyone else. »
PHOTO PATRICK SANFAÇON, THE PRESS
Ms. Masson hopes that the holiday season will be prosperous and that it will allow her to replenish her store’s coffers.
The owner of L’Aquavin is giving herself “a great year” before sealing the fate of her business. Until then, she’s crossing her fingers that her holiday season will be profitable.
Ms. Masson, like other entrepreneurs, feels a little left to herself in this situation. Questions remain unanswered and no resources appear to be available to help him evaluate his options. “There is no support at all,” also confirms Christian Paquette. The banks are very independent. »
“The fact of talking regarding it opened the discussion with many people who were in the same situation as me,” says Juliette Brun, almost three months following announcing the closure of her restaurants. It allowed these people who felt a little isolated in their challenge to talk regarding it with someone who experienced it before them and who was not judgmental. Because the support is very limited,” she adds.
What is CEBA?
The Canadian Emergency Business Account (CEBA) was created during the pandemic by the federal government to help SMEs. The first version of the program entitled a maximum of $40,000, of which $10,000 might be transformed into a grant. The government then enhanced its program with a loan of $60,000, including $20,000 as a “forgivable” loan. The first repayment deadline for these two versions was December 31, 2022, if companies wanted to keep their grant. This date was finally pushed back to December 31, 2023. On September 14, the government once once more postponed the date to January 18, 2024, if businesses want to keep the portion convertible into a subsidy. SMEs that are currently in the process of refinancing the CEBA, in particular by requesting a personal loan, will have until March 28, 2024 if they wish to keep their subsidy. Beyond these deadlines, companies will lose the subsidy part and will have to repay the entire loan on December 31, 2026, with interest of 5%.
1699704393
#Repaying #business #loans #Big #black #cloud #straight #ahead