Canadian businesses have been given a golden lifeline during the pandemic. The Canadian Emergency Business Account (CEBA) offered them up to $60,000 interest-free to keep their heads above water.
We even offered to convert $20,000 into a donation if you repaid before the due date. And this is where the injustice begins.
Unfair aid
900,000 organizations obtained the emergency loan offered by the government. Like all aid offered during the health emergency, the strings were tied too quickly.
Thus, few checks were carried out regarding the financial health of the applicant companies. Since the criteria do not exist, it is assumed that several beneficiaries of this loan already had liquidity problems before the pandemic.
Today, it is these same companies that are struggling to repay the sums they have added to their liabilities over the past 3 years. To prevent them from going out of business, the kind government is relaxing the terms, extending the deadlines, postponing the inevitable. And that’s the rub.
Penalize good players
Meanwhile, several companies have complied with the rules. Some repaid what they owed, others simply refused the CEBA loan because they did not need it.
And how are these companies rewarded? Seeing bad players in the market taking advantage of a pass on the paddle. No compensation for good players, just relaxations for the less good ones.
This is how we establish a culture of helping hands and discourage responsible companies.
Mind you, we do the same thing with mortgages. Can’t pay off your mortgage? No problem, we extend we give you deadlines!
Meanwhile, those who make their payments, tighten their belts or simply don’t buy are penalized. It’s the world upside down.
2023-12-06 03:49:55
#Business #loan #repayment #deferrals #penalize #good #payers
