‘Give us a bit more time’: B.C. businesses struggling amid pandemic loan deadlines

Many small businesses and non-profits in B.C. are struggling to survive the impacts of inflation and rising interest rates and are now facing the added pressure to pay pandemic loans back.

Most businesses and organizations are saying they need more time.

Clare Yazganoglu, the executive director of Women in Need Community Cooperative, told Global News they are only able to hang on due to the federal emergency loan they received during COVID-19.

“It was crucial at that time for us,” she said.

“This is a much longer journey than I think any of us could’ve imagined. And so, we need more time.”

According to the federal Ministry of Finance, it has already pushed the deadline by one year to Dec. 31, 2023 and recently granted a small extension of another 18 days to Jan. 18, 2024 or until the end of March if the business makes a refinancing application with the institution that provided their loan.

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But advocates say, given the circumstances, it doesn’t go far enough.

“Businesses are now dealing with inflation, higher interests,” Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, said.

“They may have been prepared to pay this back but costs have escalated in the meantime, so it’s making it more difficult for them to do so.”

The chamber of commerce is now joining the call for a two-year extension on the forgivable portion of the loan, which could be $10,000 or $20,000, depending on the total amount that was borrowed.

“If this extension could happen it means that these businesses will have a much better chance of surviving,” Williams said.

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However, some businesses have already decided to make other plans.

Java Jo’s Cafe, on Douglas Street, posted on social media that it is closing that location and downsizing to a mini version in January.

In addition, Sherwood restaurant on Pandora Avenue recently announced it has been sold and will close down on Sept. 29.

“If we kill small business, we are going to have even bigger problems, so I’m pleading with everybody: let’s work together, let’s find a solution here,” Ian Tostenson with the B.C. Food and Restaurant Association said.

“We’re going to pay that money back, just give us a bit more time.”

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