New knowledge exhibits virtually one-third of funds for the Canada Emergency Enterprise Account (CEBA) went to masking staff wages.
Statistics Canada figures launched on Thursday present 29.4 per cent of CEBA quantities had been used to cowl payroll prices, based on these polled by the company.
Enterprise house owners additionally used 19 per cent of CEBA quantities to pay suppliers, the second largest expense.
Sixteen per cent of CEBA funds had been used on “location prices,” equivalent to hire, 6.8 per cent for utilities and companies and three per cent on property taxes.
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CEBA was launched in early April to supply struggling small and medium-sized companies and non-profit organizations interest-free, partially-forgivable loans value as much as $40,000.
1 / 4 of that quantity can be forgivable if paid by the tip of 2022.
A second CEBA mortgage value as much as $20,000 will quickly be obtainable for companies presently eligible. Half of that might be forgivable if paid by the tip of 2022.
As of final week, 785,806 CEBA loans have been authorized, value $31.4 billion.
Greater than half of companies receiving CEBA within the survey advised StatCan that the mortgage was essential to proceed operations, whereas one-fifth stated different sorts of authorities assist had been additionally wanted on prime of CEBA.
Just one in 10 companies stated they might have continued operations with out CEBA.
Out of all CEBA recipients, practically half had relied solely on the mortgage for assist throughout the pandemic. Almost half of companies who acquired CEBA have additionally accessed one of many federal wage subsidy packages: the Canada Emergency Wage Subsidy or the Non permanent Wage Subsidy.
The 2 packages offered struggling companies monetary assist to cowl a portion of payroll prices.
As properly, practically one-third of CEBA-recipient companies reported accessing non-government funding, often via present credit score agreements, private financial savings or borrowing from family and friends.
Small companies, these with as much as 9 workers, account for greater than three quarters of CEBA loans.
The development trade was the sector with the most important variety of mortgage approvals, making up 14 per cent of all recipients.