No doubt all the Keynesian court economists will tell us that the solution to this problem would be to forgive the loans in their entirety.
Last month, small businesses faced a deadline to repay interest-free loans of C$60,000 ($44,676) made available to each of them during the pandemic. Of the 900,000 who had taken the government support, a fifth have not yet repaid their loans, Finance Minister Chrystia Freeland said on Monday.
Lovely! I paid off my CEBA late last year.
Boy, do I feel like such a fool!!!
Technically you didn’t pay it off. You fulfilled your obligations and got $20,000 free from the government by returning $40,000 of the $60,000 they gave you.
You are correct, except that I didn’t go for the extra 20K, and thank goodness I didn’t fall for that trap. I only had to pay back 30K, but now I feel that maybe I shouldn’t have paid anything at all, if all the loans are going to be forgiven.
Point is, I didn’t whine about the debt trap. Through hard work and discipline, I managed to pay back what I owed. I hate having to owe anything to anybody.
And for the record, if I was obliged under the rules to pay back the extra 10K, I would have done it.
Steve – that $20,000 (or $10,000 for those who only took out $40,000) wasn’t free, it was TAXABLE money and had to be reported on the corporation’s T2 return in the year the grant was received. Have clients who did take advantage of these grants as were seriously struggling under all the government-imposed restrictions during Covid. They are fortunate to have recovered sufficiently to be able to repay the loans on a timely fashion, but they’re not doing that well still. Inflation is a killer when you can’t raise your prices fast enough to cover your costs.
Well it was the government that forced them to either not do business or forced their clients not to go. That was the plan. Destroy small business and allow huge corporations (aka campaign donors) to remain open and speed up globalization. I have a hard time blaming them.
Oh and by the way, the PM spends more than that on his campaign visits(which happen dozens of times each month) to the remaining idiots who still think he’s great.
I was waiting and waiting for a decision they would be forgiven and paid off just before the deadline. They better not forgive them. If there’s free stuff from the government you better take it because you will be the idiot paying for it.
“I was waiting and waiting for a decision they would be forgiven and paid off just before the deadline. They better not forgive them. If there’s free stuff beaten out of some taxpayers by government, and given to favoured others you better take it because you will be the idiot paying for it.”
There, fixed it for you.
The bank offers loans to those eligible to pay off the pay back portion of the loan at today’s higher interest rates. It’s through the governments actions that businesses were put in the position of not being able to generate any income. This country is so screwed no matter what you do you’ll be paying for other peoples free stuff. Unless you do nothing or work for the government. Just wait until they bring in UBI.
I could be wrong but I doubt the number of unpaid loans is that low.
And how many of the businesses that took the “loans” went bankrupt
20% are deadbeats…I doubt there’ll be any forgiving but if they do, the 80 percent will lose their minds. That said – Watch for Provincial MP’s to cry the blues on behalf of the 20%.
Reminds me: Is Lisa Hepfber’s husband ok? I worry for him.
But, but, but, it’s the Freedom Convoy that caused these businesses to fail! Ask anybody in Ottawa.
I see your business bankruptcies and I raise you a commercial real estate crisis.
https://markets.businessinsider.com/news/stocks/commercial-real-estate-crash-svb-collapse-property-woes-regional-banks-2024-2
The money quote is “The mayhem in regional banks reflects the malaise that has gripped America’s commercial property sector, which has a $2.2 trillion mountain of debt due in 2027.”
It used to be millions. Then it was billions. Now it’s trillions.
Not to worry. All those troubled banks will just cover the losses by borrowing more from the Fed, backed by collateral which the Fed will conveniently assess at book value instead of the much lower market value. Rinse and repeat. Nothing to see here, right?
fwiw lm prepared for a hard scrabble but sufficient to be subsistent in my final years.
l hear costco sells gold bullion that has to be the best source
all that ‘bar charge’ crapola back in the 80s when l tried to get in. l asked the dealer flat out what is that? is that like a deposit on pop bottles? blank stare. just gouge gouge gouge lm prepared.
l almost lost my beautiful strong loyal boy part mastiff mistakenly trusted strangers for a wee bit of money. goddam liars led me to believe he had his parvo vaccine ‘oh musta been a different name’
almost lost him. he couldnt stand up by the time we detoured via the out of town saturday open clinic. l could see it in their eyes the urgency get him to the hospital.
lm rambling but lesson goddam learned good and proper.
do NOT trust people about money.
” … a fifth have not yet repaid their loans, Finance Minister Chrystia Freeland said on Monday.”
Let me correct that for you, Disingenuous Dwarf:
” … a fifth have not yet repaid THE REPAYABLE PORTION of their loans, Finance Minister Chrystia Freeland said on Monday.”
I know a local farmer who screwed us (taxpayers) out of 80 grand and is whining about the burden of having to pay back half of it.
Many people who got cheques likely did not deserve them. I know about highly paid professionals who got them. This was my tax money for freeloaders with zero morals.
You nailed it. See my comment above.
CEBA is Canadians Entitled to Bogus Assistance.
Calling in the “loans” suckers.
Helping the middle class in sunny ways.
ETC.
what ALWAYS buns me off this ‘loan forgiveness’ CRAPOLA, the *whole thing* is let slide. not even say 20% of the 100,000 stoooopident loan owing. nope. whole shebang gets put into the shredder.
l was lucky, but virtue of spreading my courses out paret time, availing myself of employee benefits free tuition, and working my arse off final year l minimized my costs. plus my credits overlapped so much the BA took only the bare minimum 5 full courses extra.
now, well, pfft. aint up to me. just one more place l got ostracized and excluded.
that would potentially be an informative comment if it were more coherently stated.
I would expect more from a BA earner, even in these “post grammar” days.
point taken, but
got some above avg weed yesterday
day before spent splitting fireword my rt glute got a chill went into spasm
veddy distraktink
lm getting lazy in my old age and
still to cheap invest in a dependable keybd.
have a gd weekend sirrah.
Steve – that $20,000 (or $10,000 for those who only took out $40,000) wasn’t free, it was TAXABLE money and had to be reported on the corporation’s T2 return in the year the grant was received. Have clients who did take advantage of these grants as were seriously struggling under all the government-imposed restrictions during Covid. They are fortunate to have recovered sufficiently to be able to repay the loans on a timely fashion, but they’re not doing that well still. Inflation is a killer when you can’t raise your prices fast enough to cover your costs.
Hard to repay a loan when the government that loaned the money destroyed the economy that kept you in business.
Tough shite. The so-called “government loan” was from MY bank account.
And, yes, the COVID rules ruined everyones’ lives, especially small businesses and elders, but also those suffering from long-term effects of untested so-called “vaccines”.
How many useless fed employees did they hire to run this program? They had no time or plan to vet applicants, so many applications were likely bogus. That is a continuing cost as they try to collect tax owing.
Another useless boondoggle program for bilingual staff “serving?” Canadians.
They serve us massive amounts of bullsh*t daily.