‘A bomb waiting to explode’: NSBA executive criticizes federal government loans

Small business has been hit hard by the COVID-19 pandemic across the country.

In Saskatchewan, both the federal and provincial governments are offering aid programs.

One local business expert has some issues with how the Canadian Emergency Business Account is structured.

Keith Moen, the executive director of the North Saskatoon Business Association, thinks taking on a loan is a bad idea right now.

“(The federal government) should be looking at more outright grants, because loans are just ‘kicking the can down the road,'” he said.

He doesn’t foresee revenue returning to normal levels anytime soon, and believes taking on debt could cause many problems.

“It’s just mitigating losses, is really all it is. When you have very little to rely on in terms of cash flow and you have this big debt waiting for you, it’s just a bomb waiting to explode.”

On the other hand, he praised the Saskatchewan Small Business Emergency Payment, which simply pays businesses struggling with operations.

“It’s very much looked to as a leader in the country, and other provinces are looking to Saskatchewan’s formula and encouraging their respective provincial governments to adopt something similar.”

“We’re leading the charge on that.”