Business insolvencies climbed more than 40 per cent in 2023 compared to 2022, according to the latest report from Equifax Canada.
The data also showed a 14.3 per cent uptick in the number of businesses that missed a payment on a line of credit last quarter.
Officials point to the Canadian Emergency Business Account (CEBA) loan as a significant contributor.
“Canadian businesses are facing a perfect storm of economic pressure,” said Jeff Brown, head of commercial solutions for Equifax Canada. “The end of the initial grace period for CEBA loans, combined with high input costs, labour expenses, a slowdown in consumer spending and high interest rates, is creating a challenging environment.
While many Parry Sound businesses are watching their budgets the situation is not? as dire in town as it is elsewhere, according to Chris McDonald, executive director of the Parry Sound Area Chamber of Commerce.
McDonald said that while the majority of local businesses that were eligible took advantage of the CEBA loan, most were able to pay it back before the deadline and avoid needing an extension loan.
“I didn’t hear of a lot of businesses that had to take the extension loan, from what I understand most businesses were able to pay back the CEBA loan and avoid the penalty,” said McDonald. “I personally haven’t heard of any businesses having to close because of it, locally.”
McDonald said many businesses in the community are closely watching their budgets and eagerly waiting for the spring and summer tourism season.
-with files from Brad Aubin