Halifax: According to a recent national survey, only 56 percent of small business owners in Icafax Canada think they have enough credit to pass the fourth quarter of 2021.

Not surprisingly, the plague lasted for a year and a half, leaving businesses in debt and relying heavily on government subsidies. According to Ecufax, many businesses across Canada are now heavily indebted.

“Throughout history, many small businesses have had limited access to credit. Less than a quarter of small enterprises have applied for loans to increase business opportunities in 2018, partially reflecting access to commercial credit products, ”reads the Ecufax press release.

“The share of small businesses that require credit is lagging behind. For some, lower approval rates lead to private credit.

Although 44 percent of businesses are worried about debt and their credit lines, a surprisingly high percentage (68 percent) report that they will feel confident about their business by 2022. According to Ecufax Jeff Brown, this combination can be classified as positive in nature. Small business owners.

“Small businesses are always optimistic. They believe that with money, they can overcome any obstacle or any obstacle, ”Brown said in an interview. “Typically, for overly optimistic businesses, seeing that 56 percent) is very frustrating.

When we look at these debts, we really have to think about these loans with optimism and realistic expectations.

For many small businesses, this unprecedented debt will come in the form of federal government CEBA loans by 2020. Initially, CEBA lent $ 40,000, but then $ 20,000 was reduced.

According to the federal government, about 900,000 businesses approved the first CEBA loans and received a $ 567,000 grant of $ 20,000. In total, the government has lent more than $ 49 billion; That’s a huge amount of debt.

If a business can pay its balance by the end of 2021, the federal government is willing to forgive 33 percent to $ 20,000. According to an Ecufax survey, half of small businesses feel that they can repay the loan in full within this time period. .

Jeff Brown believes the federal government should reconsider its policy on CEBA loans for how long the epidemic has continued.

“When these loans came out, no one believed that we would be able to fight for so long,” says Brown. “Should there be more forgiveness on these loans? Payment period begins in 2022. If some of these loans are not repaid in full, that pardon will be completely erased.

“What can happen is that some small businesses can get that forgiveness. So, they take bridge loans? ”

The results of the survey also show that debt is needed for business success during the epidemic. High-income businesses also had to incur additional debt.

“People who earned $ 100,000 last year were more likely to report additional debt during the epidemic,” the statement said.

Ecufax’s survey also shows that businesses have a long list of other concerns. It is no secret that the cost of living has risen sharply in recent months. Statistics recently reported that inflation last August jumped more than 4 percent compared to last year.

Not surprisingly, then, 47 percent of the businesses surveyed say that commodity prices are a major concern. Other business concerns include customer demand, supply, and staff shortages.

“Forty-seven percent of small businesses seem to have unrealistic prices,” Brown tells us.

There seems to be a black cloud all around the plague and we are not going back to normal. And these are ongoing concerns. ”

Brown could not predict when or how small businesses would stop inflation or any other problem. He, and others, have noticed, there is a small historical example of how we fall behind.

“That’s really unprecedented,” said Brown. I don’t think there is any indication of what we can expect next year.

Derek Montag is a Huddle reporter in Halifax. Send us your feedback and story ideas [email protected].

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