Small Business Debt and CEBA: Fall Update

Status of CEBA Loan

  • 9 in 10 businesses accessed the CEBA loan.
  • Among CEBA borrowers, 7 in 10 have not started repaying their loan yet.

Repaying CEBA Loan

  • Businesses that have fully repaid loan: The majority relied on existing deposits, with a smaller segment employed cost-saving measures and expense cuts. Only a few sought loan refinancing through financial institutions.

Business Owners' Reactions to the Federal Government's CEBA Repayment Schedule Changes

  • The majority of business owners did not find the federal government's changes to the CEBA repayment schedule helpful.

Business Owner's Ability to Repay CEBA

  • One third will borrow to cover CEBA loan to access forgivable portion; more than half will pursue refinancing their loan through a financial institution.

Business Owner Sentiments on Key Statements

  • Of business owners with outstanding CEBA debt: Over half will reconsider their viability if they lose the forgivable portion of the CEBA loan; 9 in 10 require an extension of the forgivable deadline; about 2 in 3 expect challenges in meeting the forgivable deadline.

This report provides an analysis of the current debt situation confronting Canadian small businesses while exploring the various implications the approaching CEBA repayment deadline could potentially have on most Canadian business owners.

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