Raising the 20 grand penalty from my CEBA Loan

Never the thing one wants to do for oneself. My name is Caren Weinstein. This year I turn 65. I have been a graphic designer self-employed since 1987. I really had plans to celebrate and maybe raise money for some of my favourite dog charities. But then came COVID and best laid plans got quickly flushed down the loo. Sometimes you get blindsided and I had no idea the shutdowns would affect my business and of course many other businesses. I really did not want to be at this point turning 65. I work hard, love what I do and plan to do it for a long time Dog willing. I am also good at my job.

In 2006 My mother was diagnosed with cancer and my life changed forever. I went from being debt free to losing all my savings and rebuilding my business after she passed. It sure isn't pretty being an only child and only family member jumping into caregiving and bringing your laptop to the chemo room. Nobody could prepare for that. Despite a rogue bank (RBC) who took me to the cleaners and the recession of 2008. I was able to rebuild and slowly get to a point before this next blip in life.

A series of unfortunate life events including an unplanned move in 2018 cleaned up anything I was able to save.(shitty neighbour). It was a great move though! 2019 was definitely back up to speed then COVID Hit. I have one major client who I depend on for the big payments, and an assortment of smaller clients. COVID affected them all. My major client was my main source of income as I practically worked for them full time as a designer. Just like that their work got out of sync, the quarterly journal fell by the wayside and I saw quite a few projects cancelled.

During the lockdowns I was able to defer mortgage payments and car payments etc. Needless to say when the CEBA loan was announced it was a serious lifeline. The game plan was to put 20 grand away and not touch it. But COVID had bigger plans for all business. I did start paying back the loan. But the main client who I needed was slow and we are only partially back to normal work with them. 2023 was much better and I was able to catch up on the deferred bits. New contracts, new clients phew! But the main client is not up to 100% speed yet. It will get there. They are still struggling! I have other work too.

CEBA was given to businesses who applied and qualified. It was in my case 60 grand. We originally had a year to pay back and if we did we got to keep 20 grand. Well nobody was able to get their businesses back to normal and COVID forged on. Our new normal. The loan was extended to December 2023. It was still not wonderful for many businesses including mine. My major work was delayed and I found the last 20 grand I put aside shrunk to nothing. I was able to pay 9 grand so if the deadline were to be extended I would have owed 31 grand. My game plan was to try pay at least 10-15 grand down and then next December (it still is) be in a position to finance the balance. Had we gotten a full year extension with the 20 grand forgiveness.

Trudeau and his gang have decided businesses would only get an extension to January 18 which has come and gone and those of us who couldn't get a loan are SOL and also on the hook for the 20 grand. He saw no reason to give any more extensions because in his eyes COVID is over and we all need to get over it. I would love to get over it. We were all instructed by the government to go to our bank who administers our CEBA loan and get a loan. Well good luck on that. Almost 65 sole proprietor, no savings, could have a better credit rating but no. So loan was declined. In addition they were supposed to keep the application open so we could all have time to get alternative financing but they didn't in my case. Trudeau says, no mercy, if that didn't happen you are on the hook for the 20 grand. It is estimated 200 thousand businesses have had loans declined.

Well Caren you have a house with decent equity. Why not go that route? One company who might as well be called a loan shark would set up a second on my home for the full 31 grand at a cost between 6 grand and 9 grand. That is just the setup. Interest would be about 18%+ compound. NOPE. The mortgage holder of my home would be more than happy to break my mortgage which I have locked in at a good interest rate for another few years and hit me 4 grand to set up an 18% line of credit. But guess what we both agree that is just stupid! BIG NOPE

Older single business women who are sole proprietors on a good day have a harder time to get loans. I have known that all my life. I am too poor to get that financial break. But apparently poor enough to get financially raped by predator lenders In a perfect world I would love to raise 31 grand which is the real balance or as close to as possible so I don't lose 20 grand. I know I might be judged for launching this campaign. I might be able to convince the Government the CIBC loan app was still open. Raising that would be a miracle!

So as of January 19 the full 51 grand is now at 5% interest annually. I plan to start paying the interest and a chunk on the loan next month. I have 3 years to get the full 51 grand paid. That includes the really unfair forgiveness amount I lost and have already been taxed on. I am one of the lucky ones. I have work but I am a realist I need help. Canadian Federation of Independent Business who "fought" for us (not very well I might add) had all of these insane suggestions to finance the loan and try to save the 20 grand. One of them is to borrow from family. Hard to do when you don't have any. Crowdfunding was another one of their "ingenious suggestions" Hey I might as well try. Any amount I can raise for this would be a tremendous help.

While organizations claim they are fighting this past deadline still, I am holding out no hope that they will succeed. Trudeau, Rechie Valdez and Chrystia Freeland refuse to budge. They don't care. So as they say that is my story. I plan to sell some of my no longer needed stuff like my extensive digital camera setup and other bits that I can raise money and of course work my ass off to keep working and paying as much as I can to make this go away. Which I have been doing. I just want to be able to go to a grocery store and not clutch my heart because I owe this money and I need to pay it back. Had we had the extension to December 2024 I would not be embarking on this attempt at fundraising. Please don't hate me. I have worked really hard and it was not good enough because COVID cared for nobody nor did the Trudeau government. I have always solved these problems on my own but this time I have hit a brick wall. I am staying in business but this albatross needs to get off my neck. All businesses who have this loan have had too much stress while Trudeau stood firm on his COVID loan extension.

Thanks for your help whatever you can.

And if you are really against this sort of thing. Hire me or refer me. I do great design work! It also would be greatly appreciated.Happy to send you references and portfolio pieces! Or support my woodworking side hustle and tell your friends!

I do appreciate you read this far so thanks a million! Lets see what this can do!